Achieving More With Less

TruDecision presents to major U.S lenders at the defi Solutions technology summit. Click to view and download the presentation:

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defi FEST 2017

Overview

• Introduction: Achieving More With Less
• ROA
• Originations
• Servicing
• Questions
• Achieving More With Less

 

More what?

• Closed Deals
• Financial Return
• Cash Collected

 

Less what?

• Headcount
• Expense
• Delinquency and Loss
• Capital Cost

 

Why Now?

• The market has shifted
• New/Used Sales Declining
• Used Vehicle Values Dropping
• Capital Costs Increasing
• Growth Reversed
• Investment Stalled
• Shortage of older vehicles keeping values higher
• New to a few years old seeing sharp decline
• New investment is not coming into auto
• Funding costs (warehouse and ABS) increasing
• Lenders curtailing volume to live within their means
• Large players pulling back insubprime due to market optics
• PE-backed firms not seeing many exit opportunities
• Recovery values dropping
• Servicing strategy
• Vehicle value dynamics

 

The New Mandate: Return over Growth

• Every dollar put to work in a loan must be deployed to meet the return target
• Every cost must be managed to protect that return target
• 100bps of expense is 100bps of expense

 

The ROA Mode

Question

• Which one of these could actually fly?

 

Originations

• defi (or dee-fah if you are from the South) afford lenders the flexibility to create nearly unlimited customization
• It is very tempting to have too much complexity in the buying program, and doing so often provides a false sense of security
• Achieve MORE by doing LESS