A new tool from iVendi, the Credit Distribution Report, will help dealers identify where unmet customer needs exist in their current lending panel. The tool suggests motor finance providers whose addition should fill those gaps and lead to increased sales.
The Credit Distribution Report is a mathematical optimisation model, which uses data from iVendi’s Finance Navigator platform, is based on which dealer finance applications are satisfied by existing lending panels and which are lost.
James Tew, CEO at iVendi, said: “With this development, we’re providing a degree of insight that has perhaps never before been available to dealers and their lenders.
“Everyone in motor finance knows where different lenders say their risk appetite lies – with prime, near-prime and sub-prime being the obvious groupings – and dealers tend to base their lending panel construction on covering these categories.
“However, our report shows that lender reputations for risk and reality are quite often very different – discrepancies that mean dealers are quite often failing to meet the needs of quite large groups of customers.”
The Credit Distribution Report builds individual dealer profiles based on applicant credit scores to provide visualisations of which types of customers are being approved for finance from their existing lending panel and which are being turned down.
Tew said: “This provides a clear picture for the dealer showing where they are losing business.
“The suggestions for additional motor finance providers we then provide, based on their real-world lending activity from our data, are completely agnostic.
“We even include an estimate of how much additional finance we believe could be added each month by following this recommendation. It’s a comprehensive picture.”
