Open Lending, a provider of a unique auto lending enablement platform with default insurance, signed 77 new lenders to its Lenders Protection program in 2019.
“We are extremely excited about the unprecedented number of lenders who signed agreements to partner with Open Lending in 2019,” Open Lending CEO John Flynn said in a statement. “The auto lending market continues to see extreme competition and we believe our platform enables auto lenders to provide expanded offerings that allow them to be more competitive without unduly increasing their risk.”
Notable auto lenders include, the $8.3 Billion Alaska USA, $9.1 Billion VyStar Credit Union, $4.8 Billion Idaho Central Credit Union, as well as 2 captive auto finance companies.
Open Lending uses various alternative data sources and proprietary underwriting to determine the appropriate risks for borrowers who don’t have a prime credit profile. The fully automated system then calculates an interest rate inclusive of the cost of a default insurance policy that helps mitigate the loss in the event the consumer defaults.
“Lenders Protection helps auto lenders say ‘yes’ to more loans,” Flynn added. “It helps lenders earn more from loans that they might otherwise deny and build stronger relationships while providing a credit enhancement offsetting additional risk”