Automotive finance companies, brokers offer various finance products for a whole range of vehicles. Some of the contract types could be

1. Business Contract Hire
2. Personal Contract Hire
3. Personal Contract Purchase
4. Sale and Leaseback
5. Non Status/Sub Prime Contracts
6. Lease Purchase
7. Hire Purchase
8. ..

The number of vehicles that are available in the market is also varied. Add to this the number of institutions that provide the financing (like Banks).

Now, Let’s see what potential issues could be there in these systems

1. An independent broker will market products from a variety of Financial institutions
2. Product contracts might keep on changing as rates are market driven
3. New products might have to be added at a short notice
4. Locking Rates will mean that the system MUST be able to Apply the contract that was valid as on a certain date
5. Each financial product provider (like a bank) will have their own eligibility criteria.You will have to match the buyer with the best product. This is normally very difficult to do as automation levels are low.
6. Typically, only prequalification is automated.How about Eligibility & underwriting then?
7. Pricing mechanisms are generally handled manually with little intelligent automation
8. Underwriting automation?? Non existent!

So, what could be the possible implications for the Business?

1. Well, for one, lower level of automation will normally mean that the business volumes will get affected.
2. Every new hire must be trained, and these costs will typically be high as training can typically take upto 2 months
3. The possibility of errors is very high because of the manual work involved.

Intelligent Business Decision Automation - The BRMS Way

BRMS offers the most intelligent & business friendly method for automating the business decisions in this sector.

1. Capture the eligibility guidelines for each financial institution (like a bank, Investor) separately. This will immediately make these visible to the Business & make change easier to absorb
2. Capture the pricing guidelines for each investor for all possible contracts and products. This will enable the pricing structures captured as Excel to be imported directly into the system, thus reducing manual errors.
3. Capturing the “Business Rules” will enable the broker to provide reasons for qualification/disqualification, pricing break-up etc.
4. The brokers can allow an automatic loan lock-in at some rate using the historical pricing capabilities available in a BRMS
5. Because the policies are captured as Business Rules in a BRMS, changes to loan products can be absorbed easily by the system quickly
6. Policy validation, verification and auditing will be far easier, and the rules are captured externally, and not buried in code, stored procedures.
7. Because the pricing rules are centralized, risks will be reduced, and auditing becomes simpler

Take away

Businesses operating in the Automotive finance sector will benefit from using a BRMS to Intelligently Automate their Business Decisions. Using a BRMS will increate the visibility that a Business has into its systems, while providing greater agility in the current red hot competitive market