Business Process Outsourcing: An Auto Lender's Roadside Assistance

Most cars carry a spare tire in the trunk. Tucked away under the mat, it's there to get you back on the road should you need it. If a tire were to go flat, drivers have two options to get the car moving: change the tire themselves or call for roadside assistance.

The decision to call for roadside assistance depends on a number of factors that include mechanical skills of the driver or his passenger, tools available, the time it will take to perform the task and the conditions of the road or environment.

Auto lenders can also call for assistance.

Automotive account servicing is an area where many lenders may have a need for additional support. From providing outstanding borrower care to vehicle remarketing, auto lenders have an immense number of activities to manage and prioritize during the life of a lease or loan. To be successful in account servicing, lenders need to execute with the right level of personnel, technology investment, time commitment, partnerships and dedicated expertise.

Business process outsourcing services for automotive finance offer an alternative way to manage the twists and turns of the industry and a business's evolution within it.

A lender's decision to utilize outsourced servicing functions, like a driver's use of roadside assistance, is dependent on a number of factors:
 
Staffing. One of the most common reasons companies look to outsourced services is to supplement staffing gaps. Auto lenders focused on growing their account portfolios often find there is not enough volume to staff and support all the back-office servicing activities. For example, instead of allocating a portion of a full-time customer care associate's day to title management – an area that can be time consuming – business process outsourcing can provide support for lower-value functions, leaving more time for high-touch interactions with borrowers. Managing training, turnover, and peak and off-peak volume are also staffing gaps which can be fulfilled through outsourcing.

Technical capabilities. A solid technical infrastructure is the backbone of a company's success, particularly for automotive lenders that rely on a tremendous amount of dataflow and interaction among systems. Some lenders utilize highly customized automated enterprise-class systems, which seamlessly network together. Others leverage homegrown, manual solutions or a combination of the two. No one solution is a fit for all lenders. Outsourcing services is a path forward for lenders that aren't fully committed to full-scale hardware and software investments of their own, but have outgrown smaller, underperforming systems. Third-party providers can fulfill the technology tool gap for a fraction of the investment.

Ability to ramp up. Businesses ebb and flow. The time and agility it takes to respond to market changes directly impact success. Whether it's responding to a new market opportunity, integrating with a new partner or managing unexpected call volumes, lenders can ramp up quickly by utilizing third-party resources. Conversely, scaling back a resource investment in an area like collections, where there are dips in calls during a given period, is easily facilitated by business process outsourcing, if necessary.

Expertise. A lender's core competency can be a road map to guide decisions regarding which processes to fulfill internally and which require external support. Lack of experience running effective end-of-term campaigns may encourage lenders to seek assistance. Perhaps they need help finding the sales channels that drive maximum resale value, or they're not sure how to best mitigate losses with borrowers in distress. In cases like these, execution may be best left to experienced professionals using proven processes. Business process outsourcing services can also be the testing ground for lenders as they build up their experience and staff.

Back-up planning. Every good plan includes a good back-up plan. Business process outsourcing provides a Plan B for lenders should technical infrastructure go down or be taxed for an extended period of time, whether planned or unplanned. Establishing a contract ensures there is something and someone to call when necessary.

Some organizations are fully equipped to handle the lending lifecycle. Others look for a third party to provide support along the way. Business process outsourcing is a way for lenders to carefully step into new decisions that enhance their chances for success or carve out a back-up plan. Whatever the reason and with the right partner, business process outsourcing can be a seamless, well-executed extension of a lender's brand promise.

Next time your lending processes seem broken down or you're contemplating a change of direction in your automotive finance journey, consider the benefits business process outsourcing can provide.