Alternative data plays a significant role in auto loan underwriting, especially in the subprime sector where credit bureau profiles may be thin, Launcher Solutions President Nikh Nath told Auto Finance News. Lenders can leverage the data housed by LexisNexis Risk Solutions to grow origination volume and streamline the decision-making process, he added.
Additionally, Launcher’s lender partners will have access to non-tradeline data, such as trade certifications and payday loans, to improve credit risk analysis. Launcher’s services are available through the internet, and the alternative data is automatically extracted from LexisNexis and incorporated into the workflow of Launcher’s appTRAKER Loan Origination System.
Launcher Solutions is a 1-year-old startup based in Jacksonville, Fla. It has integrated data from RouteOne, Equifax Inc. unit Equifax Workforce Solutions, Dealertrack, and Kelley Blue Book into its system in the past year.
Source : AutoFinanceNews