King of Prussia, Pa. — Fiserv Automotive Solutions, a business unit of Fiserv Inc., has integrated its Web-based credit application management system, called Loan Origination System (LOS), with RouteOne. Developed by the finance arms of DaimlerChrysler, Ford Motor Company, General Motors and Toyota, RouteOne will allow more than 21,000 automotive dealers to electronically submit credit applications for loans and leases to lenders using the Fiserv LOS.
There are two factors that impact a lender’s success in indirect automotive finance: dealer relationships and the ability to quickly respond to credit applications. The integration of the Fiserv LOS with RouteOne provides lenders with access to a critical mass of dealers and streamlined application and approval processes.
“Integration with the Fiserv LOS connects our mutual lending customers to franchise and independent dealers that use the RouteOne platform,” said Mike Jurecki, chief executive officer of RouteOne. “It is an efficient and cost-effective way for the lenders to facilitate portfolio growth.”
The Fiserv LOS gives lenders an edge by providing immediate approval notification on most applications. Integration of the Fiserv LOS with RouteOne provides an almost instantaneous link between credit managers and lenders to accelerate application transmittal from dealer to lender, credit decisions back to the dealer and messaging between the credit manager and lender.
“When a lender receives a credit application from a dealer via RouteOne, our Fiserv LOS automatically creates a new application file without any re-keying of data,” said Kevin Collins, president and chief executive officer of Fiserv Automotive Solutions. “It instantly evaluates the credit application based on financial institution risk tolerances and credit policies. If the credit application falls squarely within or completely outside the lender’s approval parameters, the system immediately sends notification that the loan or lease has been approved or declined.”
The system also recognizes applications that meet some but not all approval requirements and sends those applications to a queue for a credit analyst review. The credit analyst can communicate conditional approval of the loan or lease and indicate any stipulations for the rate, loan amount or down payment. The credit manager has the ability to send questions or additional information to the lender until all the conditions and terms are resolved. This interactivity enhances the level of customer service that lenders can provide to dealers by getting credit managers the results they need in a more expedient manner.
Massachusetts-based Brookline Bank, a Fiserv Lending Solutions client, will expedite application review by using the Fiserv-Route One integration.
“The Fiserv LOS tools that systemically configure credit policies, and automate decisioning and work queuing quicken our responses to our RouteOne dealers,” said David J. Pallin, senior vice president of indirect auto finance for Brookline Bank. “The automated decisioning allows us to concentrate on and review only our gray area or higher risk applications that fall above our minimum credit tolerances. This provides a win-win of improved dealer service and better risk management.”