Situation

A major national player in the automobile finance business with $500 million annual revenue was looking to use updated technologies to grow and increase market share and improve profitability by reducing costs per loan funded. Historically, the company had grown organically nationwide, but was facing the reality that growth would slow with its current products and geographies. Costs per loan funded were rising and the company needed a complete review of business processes. Company management believed that technology could potentially be used to support new product development, reduce loan processing costs and improve decision making.

Solution

An independent consultant, now a NextLevel team member, was retained to design and build a strategic technology capability to align with and support the company’s strategic revenue and profit goals. His initial approach was to identify and evaluate technologies that could best support the company’s strategies. Through collaboration with the company’s executive management team, a vision of where and how technology could enable strategic goals was developed and agreed to by all major company stakeholders. The NextLevel executive then proceeded to define, organize and implement specific programs to deploy these technologies including business cases, organizational design, project charters and plans, and project roadmaps with timelines. He assembled a technology implementation team consisting of himself as the executive-level program sponsor, existing company technology SME’s, existing company business process and analyst SME’s, a financial analyst, and business unit executive owners.

Results

With the vision and stakeholder agreement acting as guiding principles, the following actions were taken and results obtained:

  • A program to define, develop and implement a comprehensive data environment was executed to provide the critical foundation all future technologies would depend on. Additionally, the installation of a centralized and comprehensive data warehouse saved $500,000 per year in personnel costs previously dedicated to assembling, collating and cleansing data.
  • A real-time management reporting and visualization capability was developed that enabled faster and better operational and strategic decision making, saving more than $1 million annually in analyst and report production personnel
  • An Artificial Intelligence capability was developed and implemented to augment credit decisions in the loan application process. This capability reduced loan default rates by 20%, resulting in $5 million per year in avoided costs related to loan losses, repossession costs and default processing costs.
  • A Robotic Process Automation capability was developed and implemented to augment the loan application process, resulting in a 20% reduction of the loan processing staff and representing a savings of more than $3 million per year
  • With a total investment of $3.5 million, including personnel and technology investments, the total annual savings for the company was nearly $10 million one year after program inception

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