Tag: Loan Servicing & Debt Recovery

Auto Finance Provider Transforms Loan Servicing Through Strategic BPO Partnership

Posted on by Nicole Gobbo

Why iQor?

A prominent auto finance company, as a subsidiary of a well-established financial services corporation, ranks among the top auto lenders in the nation. It offers innovative, technology-driven solutions that simplify loan applications and account management, providing competitive rates and robust customer support. With strategic partnerships across numerous dealerships, it delivers exclusive financing deals, enhancing its market position. The company’s commitment to excellence and customer satisfaction has earned it numerous accolades and a strong industry reputation. 

For over 15 years, iQor has been the trusted partner of this leading U.S.-based automotive finance organization, working together to streamline customer service operations for efficiency and satisfaction. This case study explores the key factors that have solidified iQor’s position as our client’s preferred BPO for CX process management, a role that directly integrates iQor’s CX experts into their internal teams.

Strategic Outsourcing With iQor for Auto Finance Process Optimization

iQor delivers comprehensive back office support and training for the auto lender’s vast customer service network, encompassing both internal and external teams. The auto lender recognized iQor’s dedication to continuous improvement and proactive thought leadership that maximizes the auto finance lender’s business initiatives. 

This trust led to an additional strategic outsourcing role for iQor. Based on our extensive track record of success, the auto finance provider requested we serve in a consultative capacity, designing process management strategies to elevate customer feedback tracking and facilitate improvements to loan servicing CX.  

Read on to discover how iQor’s deep understanding of our client’s auto finance business, unwavering commitment to performance excellence, and agility in adapting to evolving needs have fueled a successful partnership with an ever-expanding scope.

Success Snapshot

Unstoppable Performance 

  • Unmatched tenure with our client. 
  • Purposeful CX automation insights.  
  • Data-driven strategy & execution. 
  • Auto finance process expertise. 

Irresistible Outcomes

  • 34.5% NPS improvement.  
  • 7.5% perfection rate increase.  
  • 72% error reduction. 
  • Seamless loan workflows. 

Read on for the story that led to these exceptional results.

Background

Rapid growth after 2021 led the auto lender to outsource 95% of their entire CX operations to BPO partners like iQor. While efficient, this shift meant less direct access to customer feedback previously gathered by their internal process managers, resulting in service quality requiring realignment with customer sentiment.  

Recognizing the importance of delivering irresistible auto loan customer service to borrowers, our client selected iQor to become an integrated member of their internal process management team and execute their high standards for customer-centric care and operational process optimization.

The Unique Advantage of an Outsourced Process Management Partnership for Auto Lenders

Building on our strong 15+ year partnership and deep understanding of the auto finance industry, iQor collaborated closely with the auto lender to develop their requested process management role. The role is designed to seamlessly integrate iQor’s process manager within the auto lender’s team.  

By incorporating our program experts into our client’s internal team, we contribute iQor’s decades of accumulated CX process knowledge toward achieving the auto lender’s CX goals. This capability differentiates iQor from traditional managed service providers. Impressed by iQor’s commitment to CX excellence, which mirrors their own high standards, the client has requested our expertise in optimizing their entire customer service operation.

Business Opportunity

Initial success with this consultative role set the stage for a promising future. Given the dozens of business lines outsourced by the auto lender, a well-oiled process manager program had the potential to significantly optimize their processes from a CX standpoint.

This expansion is designed to provide invaluable insights into the diverse needs of each program, ultimately safeguarding our automotive finance client’s customer service quality. By proactively addressing potential inefficiencies and optimizing processes across all outsourced operations, iQor positioned itself as a vital partner in comprehensively improving their CX. 

Solution

iQor recognized the unique opportunity presented by the client’s situation. Utilizing our extensive experience managing a significant portion of the auto lender’s outsourced operations, we proposed a strategic solution for process optimization.

iQor’s CX Strategy for Accelerating Auto Loan Net Promoter Scores and Supercharging Lien Holder Rate Improvements

Our plan involved integrating a dedicated iQor process manager within the client’s internal team as a subject matter expert. This pilot program, initially focused on the client’s primary offshore location, aimed to identify program opportunities and pinpoint loan processing and servicing gaps.  

iQor consulted with our automotive finance client to identify performance goals, such as driving significant improvements to lien holder rates and setting net promoter scores (NPS) and customer satisfaction (CSAT) on a skyward trajectory. 

The program yielded compelling results. Here’s a breakdown of iQor’s contributions. 

Streamlining Auto Loan Servicing Workflows With iQor’s Automation Expertise

A review of critical processes uncovered over 30 loan servicing workflows where automation can drive continuous improvement and efficiency. iQor’s process manager advised the auto lender on best practices for automation informed by our digital transformation expertise, paving the way for increased agent productivity and happier customers. 

Improving Borrower Satisfaction Through Collaboration and Process Optimization

Operating seamlessly alongside the auto lender’s existing process management team, iQor’s process manager played a key role in the pilot’s outcomes. This success ultimately resulted in over a dozen additions to iQor’s process management solutions to support the auto lender’s high-volume needs.  

These collaborative efforts between iQor and our client resulted in documented processes, visualized loan servicing workflows, and proposed optimization strategies. All changes were meticulously crafted to adhere to the client’s regulatory requirements, improving CX while maintaining compliance. Specific examples include:

  • Streamlining the vehicle titling process for agents and customers.  
  • Implementing call analysis that ensures more accurate call routing. 
  • Equipping automotive agents with timely knowledge base updates. 

Results

iQor’s initial process management pilot was a resounding success. Our automotive finance customer was pleased with the loan servicing improvements, resulting in the expansion of the program to other business lines.

These achievements increase the auto lender’s confidence in iQor’s ability to achieve their process optimization goals through consistent and sustainable performance excellence. This reflects our commitment to continuous improvement facilitated by open communication, a core value in our iQorian identity and critical for exceptional automotive finance CX.

Key Outcomes of the Strategic Outsourcing Partnership

34.5% NPS improvement.

Customer satisfaction soared, reflected in a dramatic rise in net promoter scores that indicates strong future sales growth. 

7.5% perfection rate increase.

The client achieved a significant increase in their receival rate for documents necessary for swift borrower approval. 

72% error reduction.

The client benefited from a substantial year to date (YTD) decrease in loan servicing errors since launching the program. 

Future Roadmap for Auto Lending CX Process Management

iQor’s footprint with the auto lender has expanded to include seven process managers across various lines of business, with plans for further growth. This expansion reflects the strategic value this program delivers, strengthening our BPO services across the client’s entire CX operation. 

iQor’s process manager program facilitated the design of a comprehensive knowledge base, empowering agents with faster and more accurate information access. A unified call flow and specialized routing profile accelerated new hire proficiency across both internal and BPO teams, boosting overall efficiency while exceeding key performance indicators.   

These improvements solidify the strength of our longstanding strategic outsourcing partnership with the automotive finance provider. Our customer’s continued trust reflects our proven track record of successfully optimizing customer service operations through high quality standards and effective CX strategies.

Major Auto Lender Accelerates Dealer-to-Consumer Financing With iQor’s Back Office Support Services

Posted on by Nicole Gobbo

Why iQor  

This case study spotlights iQor’s partnership with a financial services client that led to the addition of complex back office support services to improve efficiency and quality in their auto finance division. 

With deep product knowledge; a strong understanding of the brand; comprehensive training; and ongoing QA, compliance, and efficiency monitoring, iQor delivers fast and accurate back office support to help achieve the client’s strategic objectives. 

Our team of dedicated CX professionals delivers task QA scores at 99.3%, consistently above the client’s target with efficiency and accuracy. This results in faster turnaround times to advance the lender’s competitive advantage in the auto loan industry. 

Background

Our client is a nationwide lender of new and used automobile purchase financing. The lender wanted to maintain its high standing and grow its market share in the competitive arena of dealership-to-consumer financing.  

The lender sought to improve the accuracy and velocity of dealer funding back office support services to achieve four outcomes: 

  1. Grow its already-strong dealer network. 
  2. Fund more consumer automotive loans through dealerships. 
  3. Save time and money by doing the same work in less time. 
  4. Improve efficiency and quality by completing the loan documents with fewer errors. 

The lender relied on an in-house team and several back office outsourcing providers to handle income pre-verification (IPV) and loan document review, two critical loan funding services. 

Results were good, but they recognized an opportunity to get even better results by adding another business process outsourcing (BPO) provider. 

They were very satisfied with the 15+ year relationship and the positive results iQor has delivered in other areas of their business as a trusted CX solutions outsourcing partner. So, they partnered with us for outsourced back office services to help them achieve the four outcomes described above.  

Our client set high standards for the velocity and accuracy of their programs; iQor’s challenge was to meet those standards of excellence.  

Business Opportunities

Buyers, dealers, and lenders each have their own priorities when it comes to automobile lending.  

From the Buyer’s Perspective

Exceptional customer service throughout the buyer’s journey comes in the form of friendly and knowledgeable staff, transparent pricing and financing options, hassle-free negotiations, and comprehensive after-sales support.  A great purchasing experience can enhance customer satisfaction and build long-term brand loyalty with the car dealer, manufacturer, and lender. This relationship is made stronger through a smooth, efficient, and secure financing experience. Optimize the customer experience through human-centric interaction with agents.

From the Dealer’s Perspective

Dealers want to deliver an excellent purchasing experience to every customer who walks through their doors. Lenders that offer low payments and the best combination of velocity and accuracy help make that happen.  

Lender velocity (speed and efficiency) and accuracy (quality and compliance) in processing income pre-verification (IPV) and reviewing loan documents directly impact a dealership’s ability to sell loans to buyers.  

IPV is the first step in the loan application process. It’s used to verify the applicant’s income before a formal loan application is submitted. Dealerships need quick turnaround of IPV requests from the lender’s back office support team to hold the customer’s attention and keep the sales process moving forward. 

Once the dealer has completed the paperwork and delivered the vehicle, the lender must review loan documents for accuracy. Oversights like date of birth mismatch or lack of proof that the buyer was offered insurance could put the dealership at risk. 

In some cases, a flaw in the loan documents may require the dealership to ask the customer to come back to resolve the issue, potentially prompting them to pursue financing options elsewhere.

From the Lender’s Perspective

Competition among auto lenders is fierce. Every buyer has a bank or credit union that wants their auto loan business, as does the dealership that sold them the car.  

Every dealership has multiple sources for loans:  

  • Lenders aligned with the vehicle brands they sell.  
  • Major national lenders (like our client).  
  • Lenders seeking low-risk buyers.  
  • Lenders seeking high-risk buyers.  
  • Local banks with third-party lending programs aiming for local residents.  
  • Local credit unions. 

Lenders count on back office support services from in-house and/or BPO teams to execute the IPV and loan document review processes and maximize their win rates. Teams must execute these processes at a level of accuracy and velocity that satisfies the buyer, dealer, and lender. 

In collaboration with our client, iQor set out to execute at the same or better rates of velocity and accuracy as the existing support providers within 90 days of launch. 

Back Office Solutions

Having partnered with this client on numerous CX programs for over 15 years, we marked an expansion of our back office support with this funding program. 

iQor leaders supporting the auto lender’s programs average eight or more years of experience with the lender, possessing extensive knowledge of the lender’s auto loan products. In fact, a common saying among the lender’s employees is, “If you don’t know the answer to a question, ask iQor.” 

This tenure results from iQor’s employee-first customer service culture anchored in our seven iQorian Values that guide our interactions.

iQor team members enjoy an excellent employee experience that translates into longer tenure, more growth, and deeper knowledge in support of the brands we serve through ongoing initiatives such as:  

  • Flexible work environments. 
  • Digitally enabled training, coaching, and mentoring. 
  • Proactive insights powered by machine learning to improve individual employee experiences. 
  • Career development and progression through programs like iQor University. 
  • An inclusive culture that provides a sense of belonging through diversity, equity, and inclusion (DEI). 
  • Assistance during times of need through our iQor Qares nonprofit organization. 

With long-term program tenure, iQor’s team began from a position of deep product and brand knowledge to implement a three-prong solution to consistently meet the auto lender’s goals for velocity and accuracy. 

  1. Recruit and train. 
  2. Measure. 
  3. Coach and motivate. 

Recruit and Train

iQor’s value-driven culture and flexible work environments in secure work-in-office and work-at-home settings powered recruiting efforts to ensure consistent delivery of staffing compliance. We recruited agents for the funding program’s back office support startup teams from a pool that included new agents as well as iQorians who had already proved their ability to produce at a high level for our client. From the start, our onboarding experience welcomed and engaged new employees through our culture, values, and policies. 

The iQor team worked in collaboration with the client from Day One to understand training requirements, become subject matter experts, and partner on facilitation methods and content to drive the best performance outcomes. 

Our award-winning training team worked with the lender to design a curriculum to address critical program needs, integrating collaborative learning experiences that accelerated time to proficiency. 

iQor trainers undergo a four-level certification program to hone the skills needed to succeed in a fast-paced active learning environment. Equipped with these skills and the technology to deliver quality training, both in-person and virtually, iQor’s certified trainers deliver compelling and intuitive active learning facilitation at scale, guiding participants through a collaborative learning journey. Skills assessments help guide trainers to further support agents in areas of need. 

This comprehensive training experience ensures agents have the knowledge and skills to complete all the processes involved with income pre-verification and loan document reviews with efficiency and accuracy. 

New recruits receive onsite product training before beginning a nesting period. During nesting, agents spend part of the day handling calls and the rest of the day in training based on the calls they’ve handled. New agents must spend at least 90 days working onsite before they qualify to work at home (WAH).

Measure

Our client uses an internal system to assess performance in the loan document review process. This applies to their in-house team as well as outside BPO vendors. Performance appraisals comprise two categories: 

  1. 80% of the performance assessment measures quality and compliance (accuracy).
  2. 20% measures efficiency (velocity).  

Accuracy 

The lender checks the accuracy of the back office support team’s review of 15 specific items in loan documents. For each item, they assign a grade based on the accuracy of an agent’s review of that item. They calculate a quality assurance (QA) score—the ratio of positive grades to the total number of documents reviewed—for each of the 15 items. All 15 individual QA scores are used to calculate a composite score.

 Velocity 

Two velocity measurements are recorded: total points per hour (TPPH) and conversion percentage. 

1. Total Points Per Hour 

Agents receive points for every item they review. The number of points they receive, divided by the number of work hours for the month, equals their TPPH score.  

The average of all TPPH scores for all agents is the total TPPH score. 

2. Conversion Percentage 

Conversion percentage is the percentage of loans assigned to iQor that get funded by our client.  

Our back office operations agents focus on generating IPV (income pre-verification) approvals quickly to allow agents to go through the remaining tasks and expedite deal funding. 

Reporting

The client shares performance metrics with all loan funding back office services providers each week. A monthly business review includes the QA, TPPH, and conversion percentage for that month and the two previous months. The reporting denotes each provider’s performance in relation to the minimum score required by the client and to the stream (the average of all provider scores).  

The reported data tells each provider how well they’re doing as a unit and how well each of their agents is doing.

Coach and Motivate

iQor supervisors review the individual QA, TPPH, and conversion percentage scores. They coach agents in specific areas to help further improve their performance. 

iQor supervisors meet with the client’s QA team each week to review progress and keep lines of communication open. 

iQor launched a weekly motivational program to reward agents who score 100 on all 15 items. This program is in addition to the original agent bonus plan. 

Results

One year after the program launched, iQor, with support from the client, is helping the lender close more loans and create more loyal customers.

Accuracy Exceeds Client Goals

  • Rework Percentage: While a certain amount of rework is expected predominantly due to a lack of documents for POI (Proof of Income) tasks or for peer review, the amount of work iQor must rework is consistently lower than the target and significantly lower than the monthly stream score (the average score of all providers). 
  • Agents consistently achieve 99.3% task QA scores, exceeding the client’s 98% goal. 

Velocity Outpaces Client Goals 

  • IPV: iQor consistently exceeds the service level agreement (SLA) requirement to reply to income pre-verification requests in less than an hour. 
  • TPPH: iQor consistently exceeds minimum target and stream scores for the number of items reviewed per hour.
  • Conversion Percentage: iQor consistently outpaces the stream average and client goal by up to 40% for the percentage of loans assigned to iQor that get funded by our client. 

Since partnering with iQor as one of their back office support providers for auto loan funding, our client enjoys:  

  • Higher QA scores that consistently reach or exceed their target. 
  • Improved velocity that helps convert a higher percentage of qualified applicants to borrowers. 

Sometimes a client wants to bring a fresh pair of eyes and a new sense of purpose to a program. Expanding the role of a BPO they’ve come to know and trust in other CX programs may be their best course of action. That’s often the case when a client-BPO relationship is a true partnership, as our relationship with this client has been for 15+ years. Optimize the customer experience through human-centric interaction with agents.  

The expansion of this partnership continues as the client adds more iQor agents to the team providing back office support to their funding program.