CPS Announces New FinTech-Driven Auto Finance Platform Enhancements
New AI, machine learning and fintech investments provide greater payment flexibility and stronger front- and back-end processing systems for faster and more accurate loan support
LAS VEGAS, NV, Dec. 19, 2022 (GLOBE NEWSWIRE) — Consumer Portfolio Services, Inc. (Nasdaq: CPSS ) (“CPS”), an independent specialty FinTech that provides indirect auto financing to people with past credit issues, low incomes or limited credit histories continues its robust deployment of artificial intelligence, machine learning solutions to provide greater payment flexibility and more efficient auto loan processing. The company ended the year with three major partnerships to improve efficiency, dramatically reduce funding times and offer more payment options for borrowers.
The company has selected Informed.IQ to automatically calculate income, collect and delete credit determinations and dealer documents, and create a better dealer and consumer experience throughout the auto loan process. CPS expects Informed.IQ’s AI tools to significantly reduce funding time.
For decades, CPS has focused on bringing enhanced intelligence to auto lending, becoming a leader in FinTech initiatives that improve the front-end review and financial decision-making process. Now, CPS also helps automate the backend service experiences and has partnered with Prodigal to better manage the collections and service the workforce and process. Prodigal is a Consumer Finance Intelligence solution that uses AI to analyze agent and borrower conversations and improve profitability, experience and compliance.
For a customer perspective, CPS designated PayNearMe as its primary payment partner. This partnership will accelerate the car lender’s digital transformation and deliver a frictionless customer experience across all digital payment types. PayNearMe will eliminate on-site cash payments, dramatically reduce the number of customers paying by check and transition the majority of customers to electronic payments through multiple payment options.
“Our entire business has been powered by artificial intelligence and machine learning, from credit to service,” said Mike Lavin, Chief Operating Officer at CPS. “Adding these three partners to our back-end and front-end system at the start of the new year enables us to simplify the loan financing process, offer more accessible payment options for our customers and use AI to effectively improve collections by reduce workload.”
Since the company began operations in 1991, as of September 30, 2022, it has purchased over $19.7 billion in contracts and served a total managed portfolio of approx. 2.7 billion dollars with approx. 185,000 active customers. Artificial intelligence and machine learning have taken the company’s loan decision-making process to new heights.
At the end of the first quarter of 2023, the company will introduce a new AI credit decision model that will improve fraud detection, reduce credit losses and increase approval rates. Later this year, CPS will introduce an AI-focused recovery and recovery system scorecard that will combine crime data with machine learning, allowing the company to better analyze when the time is right to recover a vehicle.
About consumer portfolio services
Consumer Portfolio Services is an independent specialty FinTech that provides indirect car financing to people with previous credit problems, low income or limited credit history. We purchase retail installment contracts primarily from franchised auto dealers secured by late model pre-owned vehicles and, to a lesser extent, new vehicles. We finance these contract purchases on a long-term basis, primarily through the securitization markets and service the contracts throughout their life. Our operational headquarters are in Irvine, California, with four additional service locations in Nevada, Virginia, Florida and Illinois.
Since operations began in 1991 through June 30, 2022, we have purchased over $19.1 billion worth of contracts. As of June 30, 2022, we serve a total portfolio under management of ~$2.6 billion with ~162,000 active clients and 799 employees in our branches in five states. We maintain dealer relationships in 48 states. Our ordinary shares are traded on the NASDAQ National Market System under the ticker CPSS.
Media contact
Brenlyn Motlagh
Gateway Group, Inc.
(949) 899.3135
