Constant Events

This past September, Constant and our partner, ACI Worldwide, hosted 12 senior executives from top US banks (5 of the top 25 banks) and auto finance companies at our inaugural Loan ServicingTech Summit in Portland, Maine.

The group shared eye-opening anecdotes, challenges and hurdles to digital transformation and self-service adoption. They rolled up their sleeves to address the challenges posed by pressure to transform against the backdrop of limited funding, regulatory drivers and dependence on core and legacy systems.

Key trends have emerged that will impact loan and lease servicing that disrupt legacy business models and have the potential to improve consumers' interactions with their banks. Some of these trends are well in process, while others are in their formative stage. These are not all inclusive but must be understood as financial institutions build strategic business plans. It is imperative that banks embrace an innovation culture, increase their data and analytic maturity, and invest in advanced loan servicing technologies - not just their core platform. By doing so, banks can sustainably grow loan volume, increase dollars collected, scale without hiring campaigns, and pivot quickly with the market. As originations slow, banks can both protect expected margin and potentially create entirely new business models with non-interest revenue opportunities.

How can you deliver the future of loan servicing now? Forbes recently noted that "the reach of fintech into this dusty corner of the industry is still nascent." Join us as we discuss how to increase credit union member touch points to avoid unnecessary loss by expanding self-service options.

With $427 billion of loan loss charges predicted for 58 US banks over a three-year period, modeling loss projections in a pandemic is largely based on macroeconomic factors with no visibility to the duration or recovery.

So what can lenders do within their control? This webinar featuring Constant's President Carissa Robb, FICO and American Banker, addresses key strategies to reduce charge-offs, increase recoveries and drop net credit losses in order to drive loss savings.

As auto lenders wind down their payment holiday programs, they should prepare for more complex loss mitigation efforts to help borrowers retain their vehicles. Strategies covered in this workshop include automated recasting for fee, restructuring, and refinancing. When it's not possible to retain the vehicle, automated voluntary surrender tools can help preserve the asset value.

Key takeaways from this on-demand webinar featuring Constant, Oracle and Auto Fin Journal include:

• Recasts for borrowers that can afford it for a nominal fee. Make it faster and cheaper than refinance to maintain current rates and protect margins.

• Auto loan restructuring now versus at bankruptcy through reaffirmation agreements or cramdowns.

• Auto short sales/short pay-offs to reach an amicable exit versus investors becoming vehicle owners as qualifying buyers are dwindling.