SAN DIEGO — Digital Recognition Network indicated that its
license-plate recognition solution determined that more than 55 percent of the
assets the company finds are more than 100 miles away from where previous
documentation said the vehicle should have been.

Chief executive officer Chris Metaxas explained how finance
companies can use that information not only as a tool to repossess the vehicle
and ramp up the recovery process if a default takes place, but also how to use
that data to enhance the origination process so the contracts going into the
portfolio are better.

Metaxas plans to discuss the process in more detail during
his presentation at the Re3 Conference, which takes place on Nov. 13 at the
midpoint of Used Car Week at the Manchester Grand Hyatt in San Diego.

"Because most of the time people are near where their cars
are, those insights on where somebody is actually represents a very interesting
underwriting criteria that we see in the auto finance space," Metaxas said.

"If that car is not where they say they are and all of a
sudden that raises a flag," he continued.

"For originators of loans, what's really important is to
determine the truth of a statement someone may make on an application," Metaxas
went on to say.

Metaxas emphasized that mitigating risk is what lenders keep
seeking, a point he plans to highlight during his conference presentation
titled, "Taking the Bottom Line to the Top: Harnessing the Power to Drive the
Entire Customer Life Cycle."

To reinforce his point, Metaxas shared a hypothetical
example.

"If I deliver 5 percent total book value back as a return on
the back end, that means I should be able to take that much more risk on the
front end because I know I get it back," Metaxas said. "I should be able to
flip that return back to the front end in terms of being able to write more
loans and in essence drive more revenue.

"If you think about what a bank does in translating risk
mitigation into their ability to grow their book of business, the loans they
write, the policies they write, it is substantial and is exponential. What you
lose on the back end is only a fraction of what you write on the front end," he
continued.

There is still time to register for the Re3 Conference,
which is sponsored by Digital Recognition Network and Primeritus Financial
Services. The complete agenda and more can be found at www.usedcarweek.biz.

Nick Zulovich can be reached at nzulovich@subprimenews.com. Continue the conversation with SubPrime Auto Finance News on LinkedIn and Twitter.


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