ARGO Indirect Lending is a multi-channel, end-to-end solution that enables financial institutions to automate decisions. Indirect Lending also facilitates funding for Internet, third-party, branch, and dealer-originated lending across the credit spectrum.
Build Partner Relationships
Lending institutions utilize the ARGO Indirect Lending solution to successfully build relationships with dealers, branches, and other lenders. The solution’s specialized functionality:
- Enables flow-through arrangements with upstream and downstream partners
- Provides dealer onboarding tools for dealer hierarchies, maintenance, and account management
- Offers programs for bonus, reserve, and participation, as well as contacts and disbursements
The solution’s risk management capabilities automate loan decisions by consistently assessing:
- Pricing and profitability
- Rules and policies
These capabilities allow institutions to create custom, credit-based processes for each customer and dealer segment by managing:
- Stipulations and fees
Systematically Enforce Regulatory Requirements
Governance, Risk, and Compliance controls systematically enforce regulatory requirements during the loan process. Applying decisioning analytics, Indirect Lending automatically triggers policy and compliance exceptions based on the institution’s business rules and policies.
Institutions also establish a consistent process that is aligned with lending regulations. With this automation, institutions eliminate manual identification of complex policy violations, reducing potential audit and compliance issues.
Configure Teams, Balance Workloads, Prioritize Projects
Integrated workflow management tools enable institutions to configure teams and direct work to the right person at the right time. Applications are routed based on a set of predetermined attributes such as:
- Loan amount
- Collateral type
- Loan type
- Total exposure
- Customer value
- Employee skill set
Workflow management also monitors issues with service level agreements to proactively manage bottlenecks.
Integrate Paperless Workflow
Through ARGO’s Paperless Processing solution, the financial institution has the ability to integrate a paperless workflow directly into loan origination processes. Paperless Processing reduces or eliminates document printing and decreases expenses for supplies, storage, and transportation.
Tailor Processes for Differing Risk Levels
Indirect Lending enables institutions to offer loans to customers with different levels of credit risk. Based on the credit quality and the financing required, the solution tailors processes, requirements, and rules. For applications with higher levels of repayment risk, the solution calls for increased checks and balances.
Evaluate Multiple Pricing Methods
Utilizing Indirect Lending, institutions evaluate multiple pricing methods to select the best rate, factoring in:
- Credit risk
- Customer relationship
- Ongoing promotions
Spreadsheet pricing matrices help institutions provide rapid response and maintenance of pricing offers. In addition, dynamic pricing changes allow for real-time updates.
Streamline Income and Debt Analysis
Indirect Lending offers extensive income and debt analysis capabilities including:
- Review and validation processes
- Duplicate application detection
- Selective tradeline exclusions
- Adjustments based on lender policy
The solution enables institutions to efficiently and accurately calculate monthly income based on customer-provided pay stub information. With ARGO’s solution, institutions are able to:
- Automatically combine and filter multiple tradelines
- Remove duplicates
- Identify stale accounts
- Calculate payments based on predefined criteria
- Modify tradeline payments or balances owed
- Exclude tradelines
Track Trends with Management Insight
Using sophisticated analytics, the solution’s Management Insight & Reporting tools produce near-real-time reports on:
- Average turnaround time
- Credit score ranges
- Application details
- Declined and outstanding decisions
Management Insight also enables institutions to view the reports by predefined regions, areas, locations, or at an individual employee level. They include the following data:
- Current trends and the impact of historical decisions on portfolio default losses and fraudulent activities
- Service level agreements including bottlenecks and approaching deadlines
- Management reports including credit score ranges, dealer reports, application detail, and turn time
- Trends in application adjudication, concentrations, system decisions, key lending attributes, overrides, score distributions, and exceptions to policy
Integrate with Industry Agencies
To access and gather information, Indirect Lending interfaces with industry-standard credit bureaus, third-party originators, and vehicle valuation sources. ARGO maintains up-to-date integrations and provides version release options with little or no overhead.
Indirect Lending also maintains electronic communications through Dealertrack or RouteOne and reports status designations such as:
- Suspend origination
- Suspend funding
- Suspect fraud