Consumer Portfolio Services Chooses Informed.IQ to Streamline Auto Lending

Rhea-AI Summary

Consumer Portfolio Services (CPSS) partners with Informed.IQ to enhance its auto lending process through AI and machine learning. This collaboration aims to automate income calculations, credit stipulation collection, and documentation, ultimately improving efficiency and customer experience. By leveraging Informed's technology, CPS anticipates larger origination volumes and reduced risks, including fraud. The initiative supports CPS's strategic focus on digital transformation and inclusive lending practices, positioning it competitively amidst regulatory scrutiny in the financial sector.

Positive

• Partnership with Informed.IQ enhances operational efficiency in auto lending.
• Anticipated increase in loan origination volume and no-touch processing.
• Reduction in fraud risk and biases in lending through AI technology.
• Supports CPS's digital transformation strategy and competitive positioning.

Negative

• Increased reliance on technology may pose operational risks.
• Potential challenges in regulatory compliance despite technological advancements.

 Partnership Further Accelerates CPS's Digital Transformation as Rapidly Growing FinTech Company with New Turn-key AI Solution to Better Fund Loans, Faster

LAS VEGAS and SAN FRANCISCO, Sept. 6, 2022 /PRNewswire/ -- Consumer Portfolio Services, Inc. (Nasdaq: CPSS) ("CPS"), continuing their focus on artificial intelligence and machine learning, partnered with Informed.IQ to automatically calculate income, collect and clear credit stipulations and dealer docs, creating a better dealer and consumer experience throughout the auto lending process. Informed is the leader in AI-based software used by the nation's largest financial institutions to automate loan verifications. 

CPS is focused on prioritizing its operational strategy and approach to auto lending, with initiatives embracing new technologies to provide best-in-class service to its clients. Increasing data accuracy helps reduce any bias in lending and opens doors to a more inclusive set of borrowers.

"Our whole business is based on artificial intelligence and machine learning, from credit to servicing," said Mike Lavin, Chief Operating Officer with CPS. "Adding Informed.IQ to the equation enables us to handle larger origination volume, increase no-touch processing, more easily identify loan document defects and ultimately better support our customers to fund faster."

Using Informed's digital tools and machine learning solutions to collect and classify documents, extract data, compare information, calculate income and check for fraud, CPS will reduce time, bias, costs, contracts in transit and fraud risk while being audit-ready.

Justin Wickett, Informed CEO adds, "At a time of heightened regulatory scrutiny and focus on underwriting and credit biases in lending, we are especially pleased to be working with CPS as they embrace AI and machine learning to continue their mission to serve the full spectrum market, enhancing their market competitiveness, while staying compliant and reducing fraud."

Informed's technology is a major step in a digital transformation initiative going beyond image recognition, by verifying the document's contents and validating the loan processors' manual checklists. 

About Informed.IQ

Informed.IQ uses AI and ML to verify income, assets, residence, insurance, auto and credit stipulations, enabling real-time, reliable credit decisions without bias. Our models process hundreds of document types and consumer-permissioned data sources, automating stipulation clearance. In 2021, Informed processed 3.4+ million credit applications, automating $110+ billion in loan originations to date. The solution automates verifications with 99% accuracy in seconds without human intervention.

Originally focused on auto lending, where six of the top ten auto lenders use Informed, lenders now use Informed for mortgages, credit cards, personal and student loans, and automated account openings. Founded in 2016, Informed.IQ raised $20M in 2021. To learn more, visit informed.iq and follow Informed on LinkedIn.

About Consumer Portfolio Services

Consumer Portfolio Services is an independent specialty FinTech that provides indirect automobile financing to individuals with past credit problems, low incomes or limited credit histories. We purchase retail installment sales contracts primarily from franchised automobile dealerships secured by late model used vehicles and, to a lesser extent, new vehicles. We fund these contract purchases on a long-term basis primarily through the securitization markets and service the contracts over their lives. Our operational headquarters are in Irvine, California with four additional servicing branches in Nevada, Virginia, Florida and Illinois.

Since operations began in 1991 through June 30, 2022, we've purchased over $19.1 billion in contracts. As of June 30, 2022 we service a total managed portfolio of ~$2.6 billion with ~162,000 active customers and 799 employees in our branches in five states. We maintain dealer relationships in 48 states. Our common stock is traded on the NASDAQ National Market System under the ticker "CPSS.

View original content:https://www.prnewswire.com/news-releases/consumer-portfolio-services-chooses-informediq-to-streamline-auto-lending-301615809.html

SOURCE InformedIQ

FAQ

What is the partnership between CPSS and Informed.IQ about?

The partnership aims to automate income calculations and reduce biases in the auto lending process, enhancing efficiency and customer experience.

How does Informed.IQ's technology benefit CPSS?

It allows CPSS to increase loan origination volumes, implement no-touch processing, and reduce fraud risk.

When was the partnership between CPSS and Informed.IQ announced?

The partnership was announced on September 6, 2022.

What are the main goals of CPS's digital transformation initiative?

To improve operational efficiency, enhance customer experience, and support inclusive lending practices.

What is the stock ticker for Consumer Portfolio Services?

The stock ticker for Consumer Portfolio Services is CPSS.