New data validates the role of automated decisioning and risk analytics in financial institutions’ performance, with 95% of Lending Enablement users meeting ROA targets
AUSTIN, Texas–(BUSINESS WIRE)–May 11, 2023– Open Lending Corporation (NASDAQ: LPRO) (“Open Lending” or “the Company”), an industry trailblazer in lending enablement and risk analytics solutions for financial institutions, today released its Lending Enablement Benchmark report. The goal of the research is to uncover how financial institutions are using technology to adapt to an ever-evolving auto lending environment.
The report reveals that Lending Enablement Solutions are playing a clear and decisive role in improving decisioning speed, increasing Return on Assets (ROA), and reducing risk exposure for auto lenders. Additionally, the use of Lending Enablement Solutions is allowing financial institutions to better reach near-prime consumers — a segment that’s strategically critical to serve, especially in an economic downturn.
Open Lending gathered responses from leaders of U.S.-based auto lending institutions at or above the director level. Key data insights include the following:
“As challenging market conditions put pressure on financial institutions to build profitable, resilient auto loan portfolios, Lending Enablement Solutions allow these organizations to do so intelligently and quickly,” said Matt Roe, Chief Revenue Officer at Open Lending. “The difference in results for auto lenders who use these solutions and those that don’t is clear. Lenders Protection™ offers a unique combination of fully automated auto loan decisioning, AI-powered risk analysis and built-in default insurance to enable lenders to strategically extend loans to near-prime borrowers and remain competitive with the industry’s increasing reliance on personalization and AI.”
Learn more about Open Lending’s survey and read the full report here.
With Open Lending’s Opportunity Calculator, financial institutions can get customized results on their potential to securely increase near- and non-prime loan originations with the Lenders Protection risk management platform. Open Lending’s Lenders Protection program currently serves approximately 440 financial institutions and has facilitated more than $19.3 billion in auto loans since its inception.
Open Lending (NASDAQ: LPRO) provides loan analytics, risk-based pricing, risk modeling and default insurance to auto lenders throughout the United States. For 20 years we have been empowering financial institutions to create profitable auto loan portfolios with less risk and more reward. For more information, please visit www.openlending.com.Share
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