Modern Car Finance: Optimising Alternative Deal Structures (ADS)
The challenges that COVID and the current cost of living crisis have presented to the motor finance sector will shape the industry’s choices for years to come. Car dealers want to get more customers through their virtual or physical doors and quickly back out again with a signed contract and a set of new keys. However, setting up the finances is where many lenders need help.
What’s needed is mathematical optimisation – analytic technology that can search through thousands of potential combinations to deliver the best possible counteroffers within the lender’s and dealer’s constraints and return those offers within seconds.
FICO set out to solve these challenges with a solution we call alternative deal structure optimisation (ADS), which factors in credit and pricing logic plus behavioural analytics, such as the likelihood of response, helping car dealers improve the customer experience and underwriting levels while also helping to ensure the best alternative offers.
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