Future-proofing a captive auto finance organization with Pega
Auto collections lifecycle moves to digital process automation
Allows for timely compliance with regulatory and reporting changes
Real-time reporting insights identify collections risks
The Business Issue
Research shows that 84% of auto finance companies plan a technology transformation over the next 3-5 years. Industry-wide, legacy systems can’t keep up with new business strategies, processes, and regulations.
This leading captive finance company was stymied by old technology. Staff was spending way too much time chasing down problem customers because they couldn’t proactively identify risky behavior patterns. Systems were siloed, limiting access to customer and changing financing regulation information. The result? Losses from poor collections, regulatory fines, and outsized IT spend.
To future-proof its collections program, the company had to reduce redundant applications, integrate systems, and streamline processes. It needed a global solution, sensitive to North American time, resource, and capability constraints.
The company chose Pega Collections™ to implement better end-to-end lifecycle management and improve originations, collections, CRM, and remarketing. Moving to digital process automation (DPA) and digital customer engagement had the added benefit of freeing up valuable staff time.
Pega’s solution integrates new data, analytics, AI, and digital platforms, allowing the lender to stay on top of changing consumer credit profiles and industry dynamics. The overhauled infrastructure provides intelligent scorecards and alerts them to new customer behaviors. Advanced analytics leverage AI and machine learning, providing the perfect omni-channel solution to improve customer experience.
Simplifying the collections program with DPA gives this auto finance company many benefits, including:
- Savings on IT spend, Total Cost of Ownership (TCO), and shadow IT
- Faster response to shifting regulatory and reporting rules
- Real-time notification of changes in consumer payment behavior
- Decreases in staff overhead
Product Area: Operations
Challenge: Legacy System Innovation
Challenge: Operational Excellence
Topic: Operational Excellence
Topic: Customer Service