CMSI and ADP Partnership Provides First Electronic Link in Canada Between an Auto Dealer and Bank Via the Internet
Bank of Montreal Returns Indirect Loan Approvals to the Auto Dealer
In Less Than Three Minutes
COLUMBIA, Md., Nov. 20 /PRNewswire/ -- Credit Management Solutions, Inc. (CMSI) (Nasdaq: CMSS) and Automatic Data Processing (ADP) Dealer Services announced today that Bank of Montreal has implemented CMSI's CreditConnection(R) to electronically process indirect automobile lending transactions. CMSI, together with ADP and Bank of Montreal, tailored the Internet link for lenders and dealerships in the Canadian marketplace using technology from Cebra Inc. to facilitate the data integration process.
Colonial Chevrolet Oldsmobile, Ltd. (Newmarket, Ontario) is piloting the service and is successfully receiving lending decisions from Bank of Montreal in less than three minutes. According to Bill Legge, National Manager for Bank of Montreal's Automobile Financing Service, decisions that would have previously taken several hours using conventional forms, phones and faxes are now returned electronically to the dealership in one to three minutes.
To use the system, a dealership employee enters the particulars of the proposed transaction into CMSI's CreditConnection software. Using CMSI's CreditConnection, the dealership then electronically transmits the proposed transaction over the Internet to Cebra, which maps and transmits the data in a format compatible with the Bank of Montreal's loan decisioning system. Once a loan decision is reached, CreditConnection automatically delivers the decision back to the dealer, again over the Internet.
Bank of Montreal carefully selected the most cost-efficient and easy-to- use electronic connection. "We chose CMSI's CreditConnection and ADP because they currently deliver the best value-added service for meeting both the dealers' and the banks' goals," said Legge. "By forming a seamless environment between the dealer and ADP, CreditConnection provides a quick turnaround service to the dealer."
"The Internet is essential in making this system affordable for all Canadian auto dealers," added Ken Jennings, Vice President of Marketing at ADP. "Even in rural or remote areas, CreditConnection will allow dealerships to use their Internet connection and thereby minimize their communication costs."
For Colonial Chevrolet and other Canadian dealerships, being able to provide the customer with an immediate credit decision improves their ability to close sales. Since the dealer can give the customer a loan decision within minutes, the customer is less likely to shop elsewhere. Customers have historically been frustrated and dissatisfied by the amount of time needed to purchase a car. Reducing this amount of time will greatly improve customer satisfaction.
Bank of Montreal benefits from the electronic system in several ways. First, the bank can provide exceptional service to its dealers by rendering a lending decision in less than three minutes. Second, Bank of Montreal will be able to increase its focus on sales support to dealers.
"We are thrilled to help Bank of Montreal become the first bank in Canada to achieve its goal of providing dealers with an electronic credit approval system," said Peter Leger, CMSI President and COO. "The CreditConnection/ADP alliance brings value to the bank, provides service to its auto dealers, and ultimately delivers convenience to the customers they serve."
Bank of Montreal, Canada's first bank, is a highly diversified financial services institution with average assets of $226 billion. The Bank's group of companies includes Nesbitt Burns, one of Canada's largest full-service investment firms; Chicago-based Harris Bank, a major U.S. midwest financial institution; mbanx, the first North American-wide virtual banking unit; and Cebra, Inc., a leading digital commerce solutions provider. Bank of Montreal has an equity position in, and an alliance with, Grupo Financiero Bancomer, a leading Mexican financial institution.
ADP Dealer Services Group provides turnkey solutions to more than 18,000 auto and truck dealers throughout the United States, Canada, Europe, Asia and Latin America. ADP Dealer Services Group is the third largest business unit of Automatic Data Processing, Inc. (NYSE: AUD), with more than $4.5 billion in annual revenue and more than 425,000 clients. ADP is one of the largest independent computing service firms in the world. More information on ADP and ADP Dealer Services Group is available via the Internet at www.adp.com. |
