A Revolution in Document Verification: How Lendbuzz is Doing More with Less.

The auto loan process can be tedious and time consuming for both your dealership and your customers. Lenders relying on legacy credit scoring methods may demand that your staff gather, verify, scan, and upload a variety of documents from the borrower to facilitate their income verification and creditworthiness checks. This archaic process can stretch the time it takes to fund borrowers—especially those with thin or no credit history—days, and sometimes even weeks. And in addition to it being time consuming, it’s prone to errors and out of step with the convenience people are used to from smartphone-based experiences.

Traditional Credit Processes Waste Time without Adding Value

These lenders typically require a large number of documents that most shoppers don’t carry on them, like proof of income, proof of residence, and employment verification, usually followed by customer interviews and references. For dealers focused on volume—as well as shoppers hoping to walk out of the dealership with a car today—these requirements often turn a sale that could take a couple hours into one that stretches out days or even weeks. And if you’re dealing with a borrower with no credit history, no SSN or no ITIN, the time and frustration involved increases to the point where many deals stall out completely.

It’s also worth noting that the responsibility for gathering, verifying, and uploading all this documentation falls squarely on your staff, which instantly reduces the bandwidth they have to close other deals throughout any given day or week.

How Lendbuzz Simplifies the Auto Loan Process for Dealers and Borrowers

While the ID and income verification should be done with thoroughness, care and discipline, there are technologies that can reduce the amount of time these steps take—while making the process itself easier for all concerned. Lendbuzz has focused on refining the loan process by developing technologies to do this efficiently and effectively.

• Lendbuzz Handles all Verifications
  Lendbuzz developed AIRA—Artificial Intelligence Risk Analysis—to greatly improve the speed and accuracy in determining a borrower’s creditworthiness. AIRA analyzes thousands of data points found in a person’s bank history (like income and spending patterns,) plus other indicators of credit worthiness, to determine a potential borrower’s credit risk. That data is then combined with the deal specifics and compared against an ever-expanding data set drawn from Lendbuzz’s own loan portfolio. Together with an easy and familiar PLAID connection to the process, Lendbuzz is able to greatly reduce the time and hassle involved in borrower income verification.
  
  
• Streamlined Document Requirements
  Thanks to AIRA’s deep-reaching capabilities, Lendbuzz replaces the long list of documents and references other lenders need with two simple requirements: a government-issued ID, and bank account. This reduces the amount of documentation you need to gather, and the amount of time it takes to gather it all, while eliminating the hassles common with traditional lending workflows—especially for non-traditional borrowers.
  
  
• Easy Photo ID Upload
  Lendbuzz’s QR Code Photo ID Upload feature provides two major benefits to your sales staff. First, it’s quick and easy, blending the familiarity of your Lendbuzz dealer portal with the convenience of your smartphone. Second, it eliminates the risk of poor-quality scans and the headaches that can come from them. The result is a seamlessly integrated experience for both your sales staff and your customers.

The Proof is in the Performance

With a streamlined set of document requirements on the front end, and Lendbuzz’s AIRA technology powering the backend, we’re able to reduce the time it takes to verify a borrower’s income to under 20 minutes. More importantly, our Express Contract feature enables even greater time savings. Dealer-submitted applications where the deal structure is within policy and the buyer is qualified can close within minutes—without your staff having to talk to sales or underwriting. This leads to a revolutionary overall time savings: less than three minutes from the start of the process to approval, making Express Contract deals an average of 130 minutes quicker than non Express Contract-qualified deals.

Put Lendbuzz to Work for You

To learn more about how Lendbuzz can help your dealership sell more cars to more people in less time, reach out to our team and someone will be in touch. If you’re ready to become a Lendbuzz partner, sign up here.

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