Scroll down to the bottom. Seems that it is still in development
loandata.com
All but one of the links are valid.
An Introduction to Spot Finance
Loandata's SPOT FINANCE is a web-based product that revolutionizes the way automobiles are sold and financed, providing
significant benefits to consumers, dealers, lenders and web site providers alike. By solving what has long been the "holy grail" of
the consumer finance industry - the instant and automated assignment of credit tiers - SPOT FINANCE provides on-line
consumers with the best vehicle/option/financing package that meets their needs while meeting the profit and risk requirements
of participating automobile dealers and lenders. SPOT FINANCE changes the on-line auto business by providing an integral
financing component on branded automotive web sites as well as dealer- or manufacturer-specific web sites. Powered by a
proprietary underwriting engine with an easy-to-use interface, SPOT FINANCE provides lenders with an inexpensive solution
for maintaining and modifying underwriting guidelines, rates and terms. Unlike current underwriting systems which are
prohibitively expensive and cumbersome given their technical limitations, SPOT FINANCE incorporates advanced technology
to make underwriting simple for the lender to automate and maintain its underwriting decision process and effectively
communicate to its customers - dealers and consumers.
Based upon underwriting guidelines submitted by participating lenders, SPOT FINANCE assigns lender-specific credit tiers,
and subsequently configures exact quotes based upon a given lender's rates, advance schedules, stipulations and documentation
requirements. Once the credit tier is established, SPOT FINANCE automatically compares potential financing packages against
the dealer's vehicle-specific profit targets, and identifies the financing package that best meets the buyer's and dealer's target
deal requirements.
How It Works
Consumers begin their vehicle search at a branded or individual dealer's web site, and choose vehicles, options or financing, or
all three. They may then submit an anonymous pre-qualification request, or begin an actual credit application. This information is
forwarded to the SPOT FINANCE underwriting engine and returned to the consumer with specific vehicle pricing or vehicles
that are "affordable" based on information supplied. Pre-qualification decisions are based upon the specific guidelines of
participating lenders, the consumer's credit application information, and credit history.
If the consumer decides to accept the information returned by SPOT FINANCE, they submit an on-line credit application to
the lender, along with a credit card number that will be used to fund a deposit when the lender approves the financing. The
consumer's credit application information then proceeds via the SPOT FINANCE underwriting decision system used by the
lender or through a traditional underwriting process. The consumer is then notified of acceptance or the need for rework. The
dealer is notified of the transaction, Loandata's fee is taken from the deposit, and the lender prepares the documentation
necessary for the consumer and dealer. At this point, Loandata's involvement in the process ends.
The lender forwards all documentation by overnight mail to the consumer, and the dealer contacts the consumer to set a delivery
and closing location date. The consumer brings the loan documents to the closing and accepts vehicle delivery. The dealer
submits all documentation to the lender by overnight mail, and is paid by automated clearinghouse or overnight mail.
Enabling Technology
At the core of SPOT FINANCE's ability to provide real-time, on-line financing is proprietary automated underwriting software
for which a patent application is in the process of being prepared. The software is powered by Oracle Corporation's
"SellingPoint", a powerful, highly configurable analytic engine; Loandata holds an exclusive license to use this engine to provide
financing and profit analysis to the consumer and business financial and insurance underwriting industries.
Access to the centralized underwriting engine is provided via a toolkit of data management tools, user interfaces and
communications programs that were designed specifically for the SPOT FINANCE product. These tools provide lenders and
dealers with the ability to easily maintain accurate and up-to-date information on financing packages, automobile inventory and
target profit levels. The tools also provide web site providers with the ability to easily integrate SPOT FINANCE into their web
site.
Product Benefits
SPOT FINANCE offers significant benefits to all of the parties involved in the purchasing and financing of automobiles via the
web. While these benefits are outlined below, it is important to note that the automotive financing market is just one of many
potential applications for SPOT FINANCE. Loandata plans on extending SPOT FINANCE to additional markets once our
initial product offering is fully stabilized and profitable.
For consumers, increased convenience and cost-savings:
· Ability to complete the entire vehicle research-to-purchase process on the web in the privacy of their own home.
· Time spent in a dealership may become minimal or non-existent if dealer elects to deliver the car to the consumer's door and
close the transaction there.
For dealers, increased sales and profit levels, and improved customer satisfaction levels:
· Increased consumer reach by listing their entire new and used inventory on-line for consumer access, either directly or via
branded web sites.
· Improved ability to realize their target profit levels for every car sold via the web.
· Improved customer satisfaction scores through elimination of haggling, finance "rehashing", and waiting for paperwork
For lenders, increased sales, reduced risk exposure, and reduced operating costs:
· Broader market reach and improved product tailoring (e.g. dealer- and/or geography-specific financing terms and conditions).
· Lower cost burden associated with maintaining/modifying current underwriting systems.
· Reduced risk exposure by minimizing underwriting exceptions and high- and low-end overrides.
· Reduced underwriting operations costs.
For web site providers, new revenue streams and increased web site traffic and ad revenue:
· Increased web site traffic by offering a full research-to-purchase solution for automobile buyers.
· Increased ad revenue from web site advertisers.
· New revenue stream from commissions or fee mark-ups for transactions using our SPOT FINANCE product.
|
