nice win
Tokai Financial Extends Its Outsourcing of Small-Ticket Leasing Services to Include Financial Institutions
CMSI's CreditRevue Maestro to Play Critical Role in Growth of the Business
COLUMBIA, Md., Sept. 25 /PRNewswire/ -- Credit Management Solutions, Inc. (CMSI) (Nasdaq: CMSS) announced that Tokai Financial Services, Inc. (TFS) is using CreditRevue(R) Maestro to provide credit decisioning capabilities to support the rapid growth of its small-ticket leasing services business.
Tokai Financial Services, Inc., headquartered in Berwyn, PA, is a subsidiary of The Tokai Bank, Limited of Nagoya, Japan -- a $260 billion financial institution. In its own right, TFS is a leading provider of private label financing and leasing services for many of the world's leading equipment manufacturers. Combining customized financing programs, innovative financial products, and quality customer service, TFS has become a major player in business equipment leasing. Its lease portfolio includes more than 100,000 leases worth over $1.3 billion.
Some of the services TFS provides to its customer base include originating leases, underwriting credit applications, and booking and servicing the leases through termination. CreditRevue Maestro provides the links to consumer credit bureaus and Dun & Bradstreet, calculates and sums the individual characteristic scores, and determines the decision, based on user-maintained thresholds contained in the software.
Recently, TFS expanded its business to provide leasing services to nine of the largest banks in the United States including KeyCorp, Harris Bank, Bank of New York, Fleet and U.S. Bancorp. While TFS has experienced a healthy growth rate of 15 to 20 percent per year, partnering with financial institutions will enable TFS to increase that growth rate substantially, explained Fal de Saint Phalle, Scorecard Manager. In recent years both TFS's leasing volume and the size of the transactions have grown substantially. However, the scorecard engine could only score and decision leases of up to $20,000. To grow the $20,000-plus side of its leasing business, TFS needed a credit decisioning system to incorporate a new set of scorecards for leases up to $75,000. "We knew our business for larger leases was going to expand rapidly, so we needed to get these new scorecards in," said de Saint Phalle. Furthermore, TFS expects to increase the $75,000 limit as well in the near future.
CreditRevue Maestro has played a critical role in allowing TFS to win new business, especially in the financial services area. "Without CreditRevue Maestro, we would have a difficult time convincing these large financial institutions to do business with us," said de Saint Phalle. "Our previous scorecard limit of $20,000 would not have cut it."
In addition to decisioning larger transactions, CreditRevue Maestro allows TFS to render a loan decision more quickly. As in other types of lending, response time has become a competitive advantage in the small-ticket leasing business. "We're under constant pressure to improve response time," said de Saint Phalle. "It's absolutely critical to our customers that we can process these applications quickly."
"CreditRevue Maestro further demonstrates CMSI's leadership in the credit decisioning business," commented James DeFrancesco, CMSI's President and CEO. "We're pleased that we were able to deliver CreditRevue Maestro, a customized version of CreditRevue, to support Tokai's very specific business needs." |
