Best Practices for Risk-Based Pricing in Auto Lending 5 steps you can take to implement a truly analytics-driven approach to risk-based pricing
The auto finance market has seen rapid shifts in demand for both new and used vehicle financing in the past two years coupled with the funding costs increase. These changes are resulting in increased pressure for lenders to have a more granular and dynamic view of their loan pricing structure, risk, profitability, and loan portfolio composition.
This playbook discusses the reasons for auto lenders to adopt risk-based pricing powered by advanced analytics and the urgency driving this transition.
The playbook also outlines five important steps any auto lender can follow to use machine learning and other modern technology to implement a true analytics-driven risk-based pricing strategy.