Document Automation Eases Auto Finance Pain at Crescent Bank
Adams, John, American Banker
Byline: John Adams
Telling a customer to "go to the DMV" to pick up a financial document may not be the very last thing a customer-experience-conscious bank wants to say, but it has to be close.
But there is an alternative. An increasing number of states are allowing electronic lien and title (ELT), which allows the department of motor vehicles to electronically exchange lien and title information with the holders of those documents.
For banks and other auto lenders, it's a way to manage changes in liens and title status, as well as trace auto finance processing, loan applications and payments; combat fraud; and store information on vehicles and loans that often gets misplaced by borrowers who have to hold onto paper titles.
"It's very important to be able to automate these records. For example, if the VIN (vehicle identification number) doesn't match the title, right away we can understand the problem if we can view that information electronically," says Ana Deupree, assistant vice president of the collateral department for Crescent Bank &Trust, a New Orleans-based auto lender that has operations across the country.
Crescent recently moved to a hosted VINtek solution to manage the transfer of lien and title information to the different state DMVs that have adopted ELT programs. The bank sees the move as a way to avoid building interfaces with the different ELT systems in different states, as well as manage the labor involved in processing liens and titles. VINtek's competitors include Decision Dynamics, PDP Group and DealerTrack Holdings (TRAK) -- who are all chasing ELT business as the auto market recovers.
"We don't have to have someone waiting to receive paper titles, that person can do other tasks. By using the system, the [title] information automatically goes to VINtek and then hits our [Shaw auto finance and lending] system. …