As part of Teranet’s ongoing effort to help Canadian lenders mitigate risk and minimize potential losses, Teranet developed our Asset Monitoring, formerly known as Lien Monitoring Service.
We recently spoke to Rob Lowe, the Director of Recovery, Risk and Fraud Products in Teranet’s Financial Solutions division, to discuss the benefits of this offering.
Q: Can you tell us what Asset Monitoring is?
A: Asset Monitoring is a tool that allows auto lenders to monitor their portfolio in order to reduce risk and mitigate losses. Asset Monitoring takes data from multiple vehicle data sources and combines this with Teranet’s PPSA lien data to identify actionable notifications. These notifications are primarily focused on Canada to United States cross-border moves, interprovincial moves, customer address changes, as well as changes to the vehicle conditions, such as insurance or damage events.
Q: Who are the intended users of Asset Monitoring?
A: The intended users of Asset Monitoring are existing users of Teranet’s registry services, such as CollateralGuard Enterprise. Prime and sub-prime automotive lenders of all sizes would benefit from Asset Monitoring.
Q: Why did you and the team decide to introduce Asset Monitoring to the market?
A: We are constantly looking to enhance our offering to lenders and aim to provide solutions that reduce risk, combat fraud and ultimately mitigate losses. When we worked to create Asset Monitoring, we worked with a number of potential data providers and conducted a six-month pilot with a client in order to validate the value of this tool. During this period, we focused on determining which notifications were important to the lender in terms of actions required and filtered down the number of notifications to reduce the number of false positives, ensuring we’re filtering to present only the most valuable notifications.
Q: What are some of the scenarios where Asset Monitoring can be applied?
A: One of the main use cases for Asset Monitoring is to track inter-provincial moves of vehicles. We provide notifications of these moves to allow the lien departments to register the PPSA lien in the new province. The notifications for this kind of move are based on a number of sources: motor vehicle registrations, odometer readings, Canada Post change of address data and original lien data. Receiving inter-provincial move notifications protects the lender in the case that a customer goes bankrupt or if fraudulent activity takes place in the new province. In addition, this information can be noted in the customer account to assist with any collections activity.
Asset Monitoring also provides notifications about vehicles that have crossed the border into the United States, using similar data from the inter-provincial move notifications. These notifications will notify your collections and fraud teams that a vehicle is now located in the United States so that you can take the necessary action to protect your interest.
Q: What other tools does Teranet offer automotive lenders to combat fraud?
A: We are working on a number of initiatives that will assist auto lenders combat fraud. These include:
- A solution to identify and prevent vehicles from being exported.
- Provide potential fraud alerts to lenders at time of originations or within their credit or funding processes.
- Looking to develop other tools to prevent consumer and dealer fraud within the origination process.
If you’d like to learn more about Asset Monitoring, or the other tools Teranet offers automotive lenders contact cmssales@teranet.ca
About Rob Lowe
Rob Lowe has over 30 years of experience in the automotive and financial services industries, having previously worked at Chrysler, Chrysler Financial and Mercedes Benz Financial. As an expert in the industry he has also worked with partners as a consultant after holding roles in finance, risk management, remarketing and product. He began working at Teranet three years ago, and as the Director of the Recovery, Risk and Fraud products he is responsible for the creation and management of products and solutions that best meet the needs of the customers of Teranet’s Financial Solutions division.
