Baseball and automobiles have been around for just about the same length of time. And for most of their histories, the two were dominated by “old-school” thinkers, who used their eyes and their guts to make decisions.
But over the past 15-20 years, baseball has undergone a statistical revolution. Spotlighted in the book and movie, “Moneyball,” there is a new way of evaluating teams and players; a way that is based on statistics and data. Now, that way of thinking has come to the automobile repossession industry, allowing auto lenders to use statistics and data to determine who the best resource to recover defaulted collateral is.
“Removing the human element and using facts and data are prime examples of how iRepo, one of several products offered by MBSi, is able to save auto lenders an incredible amount of time and resources,” said Jeff Rau, the product’s System Sales Director. By using the robust functionalities included in the iRepo assignment distribution portal, lenders can choose to have repossession assignments automatically assigned to the highest-performing recovery agent in that area without having to lift a finger.
AUTOMATIC ASSIGNMENT PROCESS
Old-school baseball teams looked at subjective areas like a player’s build and how the bat sounded when a player hit the ball. New-school baseball teams look at objective areas, like how many wins a player gives or costs his team over any other player. Like those new-school teams, iRepo provides lenders with the opportunity to make sure that new repossession assignments are placed with agents that have the best chances to recover the collateral, using the lenders’ own set of ranking criteria, removing emotion and gut instinct from the equation. This process is done systematically, with iRepo automatically assigning orders to the highest-ranking agent in the lender’s network, whether it be to a forwarding company or directly to a repossession agency. “The rankings are unique and customizable, based on each lender’s own internal scorecards,” Rau said.
If the recovery agent is in the field, the process is completed even faster. In that case, the assignment is instantly available for the agent to review, accept, and begin working. And when recoveries are completed, the system sends an automatic notification to the lender, which makes it easier and more efficient for the lender to send out notices of intent. This is especially important in states where notices have to be sent within 24 hours of recovery. Speed has always been a critical component in the recovery process, and anything that helps repossession agents work faster is always a good thing. It’s in that line of thinking where Rau highlighted that agents can further streamline their recovery and assignment management while still in the field with MBSi’s Repo Ninja product. Repo Ninja is the industry’s first mobile application designed specifically to help manage assignments in the field, and is fully integrated with the overall MBSi platform, including iRepo.
LENDER TIER TRANSFER
iRepo’s automatic assignment process streamlines a lender’s recovery operation, thereby reducing costs and improving efficiencies. But it also helps improve recovery rates beyond making sure that assignments are placed with the agents most likely to recover the collateral.
Lenders can establish a timeframe for each agent to work an assignment, and in the event the agent is not able to recover the vehicle, MBSi’s iRepo automatically closes the assignment and transfers it to the next highest-ranking agent in the lender’s network. Like a calendar alert, agents are even given an automatic 24-hour notification in advance that the assignment is due to be closed, which actually sometimes sparks an increase in recovery rates.
While the time savings may not sound like much on an individual assignment, when added up across all of the lenders’ repossessions, the time, and money, saved, can be massive, said Rau. “The savings really start to add up when you consider how many vendors each lender works with,” he said.
Along with automatic assignments, “MBSi’s iRepo can also help manage and approve vendors to ensure the highest levels of compliance,” Rau said. In today’s world of increased regulatory scrutiny, having a more robust compliance management system is a definite plus, especially when that process is automated. Agents can upload copies of their documents and paperwork directly into iRepo and then the lender can review and approve them. When licenses or other items are set to expire, the system can send notifications to notify all parties about the pending expirations. This component of MBSi’s iRepo helps lenders save money by requiring that the agents and vendors upload the documents; the lenders do not have to do any additional work other than to review and approve what is uploaded.
AVOID DOUBLE DATA ENTRY
iRepo’s integrations with other major software and technology providers in the space help lenders remain compliant and cuts down on the frequency of information being re-keyed into another system. For example, iRepo’s integration with RDN allows for a seamless transmission of information and assignments between the two systems, eliminating the need for auto lenders and vendors to enter assignments into both platforms.
“Regardless of whether lenders are using a direct or a forwarding model to manage their repossessions, iRepo presents a significant cost-saving opportunity,” Rau added. So even though some lenders may choose to use different methods for evaluating their recovery agents, MBSi’s iRepo is the best option for making the process as efficient and cost-effective as possible. And that is a great opportunity for someone to hit a home run. As Michael Lewis wrote in “Moneyball”: “People in both fields operate with beliefs and biases. To the extent you can eliminate both and replace them with data, you gain a clear advantage.”
For more information about iRepo, please visit http://www.iRepo.com or call (602) 864-7847.