Oct 18, 2024
Every year, Open Lending’s Executive Lending Roundtable (ELR) brings together leaders from across auto lending for three days of networking, insights, and innovation in Austin, Texas. ELR has become an important forum for industry leaders to discuss and share the pressing realities and challenges facing auto lending today. This year’s event came at a crucial time, as the Fed recently announced plans for its first rate cut, following consistent rate hikes over the past two years.
ELR 2024 offered an ideal space for discussing what these changes could mean for the industry, from potential refinancing surges to the ongoing challenges posed by high vehicle prices. Attendees also heard from Open Lending leaders about our latest advancements and offerings.
We were proud to share our progress in reaching a significant milestone in Open Lending’s history: 1 million auto loan certifications before the end of 2024. These loans represent more than just a number. As Chuck Jehl, our CEO, explained, they represent real people and lives that have been changed for the better because of the opportunities owning a car brings. These loans ripple into communities, fueling opportunity, growth, and connection across the country. But this achievement isn’t just ours alone. It’s a collective accomplishment that underscores the powerful impact of our relationships with our partners and customers. Stay tuned as we tick closer to certifying our 1 millionth loan.
This year, we unveiled a powerful new partnership with Point Predictive, integrating advanced fraud-fighting technology into Lenders Protection™. Matt Sather, Chief Underwriting Officer, spoke about how this integration is a game-changer for auto lenders. The Point Predictive integration gives automotive lenders a way to quickly validate income and employment and automatically identifies 60 to 80% of inflated income claims. This capability empowers lenders to make faster, more accurate decisions without the hassle of manual paperwork, allowing them to serve borrowers more efficiently.
As Matt described, this enhancement sets a new standard for intelligent, secure lending. Not only is Lenders Protection™ weeding out fraud, but it’s also opening even more opportunities for serving near- and non-prime borrowers by reducing processing time.
In addition to the Point Predictive integration, attendees heard about other performance enhancements for Lenders Protection™. Jason Burbach, Chief Credit Officer, showcased how the platform has evolved to enable more granular risk assessment and pricing, tailoring rates more accurately to individual borrowers and their unique risk profiles. Jason shared that with the updated model, 40% of borrowers are receiving higher Lenders Protection™ scores, which qualifies them for more competitive rates. This means lower-risk borrowers benefit from better pricing, while higher-risk loans are assessed with greater precision, reducing risk for lenders.
Under the old scoring model, borrowers might have been grouped into broad categories, often receiving similar pricing. This approach allows for a more nuanced and accurate reflection of creditworthiness. As Jason emphasized, these improvements reflect our commitment to innovation in lending and empowering lenders with the tools they need to reach more near- and non-prime borrowers, meeting them where they are effectively and with minimal risk.
ELR 2024 offered a wealth of insights and actionable ideas for attendees. Here are some of the most important themes from the event:
Adapting to Market Changes: Many sessions focused on some of the biggest challenges facing the auto lending market, such as high delinquency rates among prime borrowers and the effects of fluctuating wholesale vehicle values. Speakers and panelists discussed how these factors are influencing the lending landscape and shared strategies for proactively managing these risks. Integrating a Lending Enablement Solution was among the most critical strategies for navigating these challenges.
Anticipating Future Needs: With interest rate cuts on the horizon, it was made clear that auto lenders need to start preparing for a refinancing boom now. On the conference’s final day, Chuck sat down with former NAFCU CEO Dan Berger to discuss what lies ahead as we approach 2025. Over the past few years, many consumers have been in a wait-and-see mode, hesitant to make financing decisions due to high rates. Now, as rates are expected to soften, demand for refinancing is likely to rise. The upcoming presidential election also adds a layer of uncertainty as consumers and industries prepare for the potential economic impacts of a new administration.
Prioritizing Customer Experience and Speed: In a panel led by Senior Vice President of Account Management and Client Services Derica Demint, the consensus was clear: speed is a crucial competitive advantage in today’s market. As Open Lending’s 2024 Lending Enablement Benchmark found, only 5% of auto lenders can deliver a decision within seconds. In an environment where consumer expectations are higher than ever, tools like Lenders Protection™, especially with the Point Predictive integration, can be what sets lenders apart from the competition.
The Power of Partnerships: Beyond technology, this year’s ELR underscored the importance of strong, collaborative partnerships. Whether between lenders, technology vendors, or industry experts, these are the relationships that drive innovation and strengthen the auto lending industry. Many attendees noted that the connections made at ELR go beyond networking; they foster collaboration and shared strategies for overcoming the unique challenges of automotive lending.
While the past few years have brought significant shifts in auto lending, one thing remains unchanged: Our dedication to supporting our customers and partners in expanding vehicle accessibility. By providing best-in-class solutions and technology to serve the near- and non-prime segment, we’re building a future where more people have the opportunity to own a vehicle. Reaching the 1 million certification mark in auto loans is just the beginning. Together, we’re moving forward to create more success stories, one loan at a time.
Thank you to all who joined us for this year’s ELR. We’re excited about what lies ahead for auto lending and look forward to supporting you through the changes and opportunities in 2025 and beyond.
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