Rapid Digitization in the Auto Market

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You're listening to Leaders and Lending from
Upstart, a podcast dedicated to helping consumer

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lenders grow their programs and improve their
product offerings. Each week, here,

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decision makers in the finance industry offer
insights into the future of the lending industry,

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best practices around digital transformation, and
more. Let's get into the show.

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Welcome guys to Leaders and Lending.
Thanks for making the time today.

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I'm joined with Becky Philippi from First
Interstate I got that right and Fabian Theory

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from Bank of America, the Chair
and Vice Chair of the Auto Finance Committee

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at the Consumer Bankers Associations. Thank
you guys for making the time to join

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the podcast here. Thank you for
having guys. So. I know you

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guys recently had your committee meeting,
so talk to me about like what's it

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is like a very interesting time to
ask a question. What's top of mind

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for the committee? It's kind of
a wild world we're living in, well

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right now, what's top of mind
for the Auto Committee? And now we're

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it's just such a valuable committee and
disagree griplic leaders coming together about really focusing

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in on kind of the the macro
trends in the industry obviously regulatory items UM

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fair lending, gap insurance, and
then UM servicing and collection processes. Yeah.

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Cheese also is another one that regulators
of being into a cross. I

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was a cross across banking products,
but not always can medics well to your

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two O toil selfie fees are also
like top of mind for the bankers.

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So what do people think about I
mean, it's that's a lot of tough

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fair lending, gap coverage fees,
regulatory recite. Has there been an increase

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in like examination intensity or what's driving
that the kind of focus on these regulatory

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topics. Actually, I will stop
by sharing your stats from my institution.

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We were comparing level of exams combined
between you know, internal in the external.

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Yeah, and there's an increse of
like ate per SONCLFFE activities in the

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space. How do you measure that? That's like a very like a precise

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number. It's not like a back
of the envelope to externally and internal exams

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coming from various regulators and various internal
functions. So that was a needsing that

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for us to do. But just
just to show the cross product out,

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how I would say, just additional
resources needed to cover all those exams and

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so no wonder why it's it's it's
number one on everybody's mind, right,

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but rapidly changing. Yeah, yeah, Well and I saw the there's lawsuits

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from attorneys general and you know,
all sorts of stuff coming down. So

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I imagine it's a real increase in
focus on getting things right because there's a

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you know, it feels like it
feels like a lot of people out to

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make sure that the consumers are being
properly served in the market. That put

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it that way. There's one one
piece will so big yin foul and a

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committee is very interested to hearing from
all of us is what we do in

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gim of innovation in the space,
so not not of destruction and mostly you

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will be covering that a little bit
later, but innovation is top off mind

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all the bankers. Well, le, let's talk about in so I know,

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like it's it's been an interesting couple
of years in the just auto buying

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market, from like lack of inventory
to digital buying, like just just the

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purchase of an automobile has changed,
and a lot of pressure on both OEMs

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and dealers from experiences like Tesla or
Lucid that have full digital end purchase and

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finance come my own funny stories about
buying both the Tesla and the Jeep,

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which we can tell because they were
they were pretty different in bizarre experiences both.

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Um. But what are the key
trends you guys are seeing coming up?

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Because obviously whatever happens in the purchase
of an automobile market flows through into

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the automobile financing market. So what
are the trends you see happening in that

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space, because it feels like it's
a very rapid pace of change right now.

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And I will stop by just maybe
the number one that comes in mind.

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He's just increase ridd it online and
activity increasing coming from the space.

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And that's really like kickting gears or
during during trove it we've seen transact sit

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everyding um and and clients looking for
digital solution to meet that auto finance need.

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And that's just like trickled down to
the antire industry, fund the lenders

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to consumers demanding the new products.
I will say that the dealers also in

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the industry changing the way you know, they ultimately have like a presence online

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and having different rules where clients at
a time could not face to face,

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so that's really kind of like being
one trend um another one. But I

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think I've been very transforming in our
spaces thinking about just the level of like

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car in venturing. Yeah, so
over the years that really like trouble,

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were used to have those lots at
the dealership of four cars and we went

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down too close to nothing, And
I think there's lesson learns here for the

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industry and manufacturers or ems. I
think two good nuts so m because when

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you're thinking about just you know,
the years of two thousand and twenty,

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two thousand and twenty one, if
you're looking at the profit abbit for a

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lot of manufacturers, we've see profit
abbib like reaching high scores at a point

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which the inventory was very scarce um. And so what would be interesting to

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look in the future to see how
we see that trents coming back, How

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we're going to get back to both
you know, high inventory levels with more

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discounts lack we we we used to
in the past, or are we going

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to find like more of that balance. If that they took good notes and

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she gave it could be pretty it
manage the inventory levels and kind of create

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that demand. Yeah, I thought
it wasn't a car as another recreational vehicle.

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So but I remember I was looking
through the invoice this is during COVID,

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and I got there's there's this fee, like a thousand, two thousand.

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I said, what is this?
What else clean? And it's a

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ridiculous fee. They go, Jeff, it's because we can would you like

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the vehicle or not, because if
not, we can give it to somebody

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else. I thought, oh,
interesting, this is the this is the

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market price fee. The market price
is above the stated price, and so

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we're just gonna like stick it on
there. And that was probably pretty good

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for for the for that dealer,
for the OM ultimately, and Jeff,

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your point here is actually a good
one. That's another trend that we've seen.

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If you're looking at just the level
of pricing on new and news vehicles,

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I think we've seen those reaching historical
high. You could argue at the

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steel at a very high Yeah,
every very high level. We've seen,

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like US price coming down slightly.
Um. But that's that's also another dynamic

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that we have to to to deal
with at a time where inflation rights m

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our. You know, you're thinking
about just APR and the level map just

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like it inflects the consumption. So
this is this is what comes to mind.

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And the last one big issue.
Agree, I think it's it's it's

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around lack the newcommerce. You mentioned
the test Labe. Of course electrification,

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newev coming and challenging willso just the
the existing model. Yeah, and coming

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back to you also the point I
was making earlier about like the online buying

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process and short who seeing you dynamic
and a mackt aw client experiense right now

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you could just do every fall like
do you. I mean, it's interesting

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because it feels like the OEMs are
using the moment of electrification to change the

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nature of the relationship with the dealerships
in terms of many of them are looking

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like my experience, I joked about
buying a Tesla, I'm buying My interesting

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jeep experience was that I wanted to
buy a jeep. There was no inventory.

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I go to the dealer that like, you know, you can search

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to the inventory online, I hope, But there's nothing. There's like two

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that are here and they're not what
I want, and they always just have

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to order it for you. I
say, okay, And so you know,

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of course, what did I do
first? I went to Jeep's website,

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I configured the car I wanted,
and they put me in touch with

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the dealer and I went to the
deal and like, oh, well you've

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got the order. I say,
okay, how do we do that?

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They pull up jeep dot Com on
an iPad and had me rea and figure

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what I'd already done at home and
then submitted to the manufacturer. And I

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went, well, why did I
what did I do? What did I

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come in here for? Why did
what was this whole process? And they,

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of course got something a little wrong. You do the way I don't

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just you know, that was like
Greece. But it feels like a lot

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of the manufacturers are trying to use
their electric vehicle fleet as a place we're

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going, hey, no, we
may take more control of that buying experience

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because this is not fitting into our
old relationship. And so I'm curious if

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you see that shifting into more broadly, because it does feel like a moment

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where they're trying to like a little
bit change the way it works and provide

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that the test experience. You go, like give your credit card and then

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the carshes up at your house like
three weeks later. It's a very different

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experience and why I think that the
aliens are trying to make something like that

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available for their for their for their
consumers as well. Agreed, and so

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coupled off, you're thinking about dress, but you're describing which is really like

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reinventing or revamping I should say,
the client experience. And NBC's really kind

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offlect the name of the gamp um. So a lot of the lenders are

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used to work through the HINDWEC space
and the theater model. Some of the

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new players that you just mentioned just
are reinventing client experiences, providing digital solution

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for the clients to configure the valiables, just linking linking the loan application and

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the finance directly and the light in
it and providing like all the digital tools

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e contracting designing that clients will expect
and that process could be done from your

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patch. So I am and I
will say that is also a good thing

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for the industry, that accelerating that
that transformation, that digitalization of the space.

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So so overall, I think it's
better for the clients, better for

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the industry and a lot of the
players process spectrum, not just that he

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needed to assortion and I know that
we play in that space back then.

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Let me ask you this because I
um, the technology side on lending particularly

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is interesting to be how do you
really integrate that experience? And I thank

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you? So I said I wouldn't
tell about my card banks. I want

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to tell both my car buying stories, which is you know. I went

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to Tesla and I called my bank
and I said, well, i'd like

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to get I'm buying a Tesla.
Can I get a loan? Like I?

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Where were you? Guess? For
you? I did the thing that

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you all would love for consumers to
do. I called my bank. I

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said I'd like to get a car
loan and they said, I'm sorry,

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Jeff, we don't have a digital
application and I can't do it for you

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as your banker, but if you
walk into the local branch they can give

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you the application. I thought,
I won't tell, I won't name my

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bank. And I said, this
is ridiculous. I'm not doing that,

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and I went to the Tesla side. It was all, would you like

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to get one of our finance offers? I said, yes, I would

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Apparently how I thought I was just
going to pay cash, but apparently I

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will finance with you. And I
of the application, I got instantly approved

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and I got a loan from my
bank that did not have a digital process

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for me as a consumer to get
a loan, but would give me a

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loan digitally instantly through Tesla sites.
So they got the business in the end.

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But back toward I'm curious. We've
talked about the technology on the car

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buying process, but the technology of
being able to offer instant clothes really seamless

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technology, and the lending side,
I'm curious what you see happening. That's

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because it was really shocking to be
that they could provide a digital clothes experience

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on a loan on Tesla's website,
but not to me directly as a customer.

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That just I was kind of going, what has happened here? Surprising?

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How how many especially smaller institutions that
you might hear that don't know that

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it was not a small institution really
well, it's not a small student but

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are narrowing down the list tho we
shot support that channel your left of the

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dust, not like you said,
to have the back end integrations you're Tesla.

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I mean it's it's important that we
accom for that. So I think

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what you're touching on me here,
Jeff, is is really like an evolution,

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but is opening in the marketplace where
even the landers are looking into.

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Historically, I will say, just
most of the landers in the auto space,

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I've been playing into the indirect space, of course, and what you're

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describing here is just simply needed investment. And some players are you know,

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I will say, ahead of others
um into the client direct to a point

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proposing financing solution for their own clients, and and and and then they can

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that will lead to the dealers,
or that will lead to to to the

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manufacturer in your case, or the
example of Baselatum and some of us capabilities

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are getting built. Um, it's
a business decision. I will say also

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about some of those landers, I'm
making a what's it's always often? I

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mean, I say, everybody wants
me to everybody wants our customer to come

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to them for the loan. But
then you know, the dealers have a

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habit of finding a way to convince
you that there's a better option through their

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indirect channel that you can get and
that loan not sticky. So I understand

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it can be a tough business decision
to make that investment because like you can

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have a great available product. I
might go get pre approved and you send

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me the check and I go,
you know what, I didn't want that

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anyway. I actually got a better
deal to test. So it's a it's

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a tough decision. It's not always
been easy to keep that business. Even

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it's hard to get people to come
to you in the first place, and

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it's even harder to them to stick
with that direct loan when they walk in

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the dealer and they've got some incentive
going they call their partner over at their

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local institution and find you a better
deal. It could be disruptive to do

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other relationships too, So, like
when you talk about the business decision,

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that's part of it as well.
It's a cline violence. Yeah, So

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let's talk a little about the lending
side of the business more directly, Like

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what is I know the inventories have
shifted the sales environment, but the interest

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rates have been a pretty interesting ride
here of late. And you combine that

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with you know, shifting asset values
and like what what what is the collateral

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I have really worth? What's the
value of my book? Like, what's

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the real recovery value on my book? As those prices go up and maybe

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don't stay where they are and come
down, and how collateralized is my book.

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I'm curious what you're seeing shifting in
the environment because it feels like both

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sides, both the interest rates,
the cost of funds, and the asset

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value backing this or have been on
a bit of a roller coaster ride in

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terms of where those values are and
how is that impacted the lending business.

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You know, obviously really impacts the
affordability you know, so so borrowers,

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Um, no, if they're at
a position too with negative equity now from

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a like you said, buying high
and yeah, kind of losing value to

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risk there too, but you know, maybe forcing them to ful that to

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their over units lager and and not
enhapsing right away. Um, you know,

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stretching out loan terms, you know, longer loan terms to make that

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payment more affordable. But yeah,
some definite risks there. You're thinking also

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about platform or pope folio standpoint,
the clients made an arbitualge as well.

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Sure, looking back into twenty two
twenty one, Um, we had like

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a high mix of you know,
lease happening in the US market that that's

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really kind of like shifting back to
more like a purchase based on what you're

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describing in the dynamic of the market
and the price and the interest rate that

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might shoot shot back in the future
always seeing like some adventure we're coming back

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and if I would, I would
age that some of the manufacturers might just

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subsiding a little more of the of
those of those leases. Um. But

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that's another like dynamic that we've seen
for the last couple of years, which

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obviously changed or has an impact on
just the overall like Pope folio and the

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way we manage it. Are you
are you seeing impact to like credit quality,

225
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credit performance as rates go up?
Is you know, we've seen the

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personal savings rate, you know,
was at a kind of obscenely high level

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that was almost never seen in history, and now it's like going down below

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where maybe the long term average seems
to have been. If you except the

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kind of two years of like that
immediately that grap it's like it just kind

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of doesn't even make sense with those
two years. But it seems like that's

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coming down to you, Is that
flowing through to losses and of course with

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asset values maybe decreasing over time,
you've got like recoveries also come down.

233
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Have you seen that impacting portfolios generally
yet or is that maybe something you're just

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keeping your eye on, because it's
not it's not on the data yet,

235
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but it certainly looks like a trend
to be watching. Oh, you're so

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artificially low on delinquency, you know, in the industry for for a while,

237
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so it's starting to let al out
a little bit. Not that.

238
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Yeah, and you're thinking about just
I mean, that's obviously something between monature

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just and constantly I imagine, Yeah, keep our eyes on to your point

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that Kia think just the industry has
been giving with very little little be equancies

241
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and losses portfolio based on the you
know, professors performance UM and great recovery

242
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I got chill enjoy that the higher
values too. So yeah, so um,

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I would say just obviously depending on
the landers and the type of like

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landing activities, you could argue that
you will just be a sectually different UM

245
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and so at at B at bad
stage, I think the losses of the

246
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equincy is still fee meant like failing
law. Um just you know, coming

247
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back to to pre COVID a level. So, but but we we're watching,

248
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We're watching, watching, watching watching
wondering see what that's I wonder do

249
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you see people preparing for this is
thinking further in the future. But you

250
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know, we had a we were
partnering with some institutions around a refive business,

251
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which has never been a huge business
and auto um, you know,

252
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it's never been compared to like,
let's say, mortgage. The percentage of

253
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loans and give refinance is actually quite
a bit smaller, which which we found

254
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out. And obviously right now is
a really bad time to refinance loans because

255
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your cost of funds are likely quite
a bit higher than when those of thrones

256
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were originated, but also kinds that
the launching new programs takes years, and

257
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in years, were likely to be
in the opposite environment, which is a

258
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bunch of loans originated during a relatively
high interest rated period. Now with costs

259
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of funds. You know, I
could not supposed to knock on the Table's

260
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messed with the mics, but knock
on wood. Interest rays coming down,

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you know, I'm not talking about
the next six months, but the next

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two years we expect to probably see
interest rates coming back down from where they

263
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are now, and that making means
for an opportunity and one that probably if

264
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you want to be ready to execute
on in a direct channel channel, you've

265
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got to be investing in if not
today and the relatively near future. Do

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you see people looking to future?
This is Hey, we've got a very

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different environment that will be here eventually. We want to be ready to take

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advantage of opportunities that are created by
a very different environment English old enteries.

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Yes, and that specific product you're
describing is something that I'll always be key

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in them. Where you're in the
climbed all right space, that's actually very

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activing invasement and ulsting basting capability es
ahead off the cycle these scribing and it's

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all about it again, just serving
the clients being there, reinventing about client

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expanse, and I should think about
the refineance processing itself VSPSPS. A lot

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of headles that comes. We've been
we fee refinancing, there are financing your

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loan and so working through those ahead
of time, trying to automate and simplify

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the process is what we already kind
of like focussing them. It feels like

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that process is also getting easier with
so many of the DMVs moving to electronic

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titling particularly during COVID where there's a
lot of maybe not full electronic titling,

279
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but these signature is allowed on title
transfer. All of a sudden, you're

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saying, you know, some states, that was a temporary and it's now

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it's becoming a permanent solution, going, hey, we can actually start to

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automate what was macas is a very
manual process that made in my experience,

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like I can get you into a
better rate, but after I cover my

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operation costs, well, now I
can't get you into better rate anymore because

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it was so expensive to do some
this manual processing. That may change the

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nature of the opportunity in a meaningful
way of we can really get the high

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levels of digitization automation. Interesting,
So what are the other big trends you're

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saying, like if coming up on
a couple of years, the one that

289
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comes to mind is just, you
know, an evolution of the ownership model.

290
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That's a FASCINTI thinking about trends that
we're seeing in Europe. Um.

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So obviously we've seen the traditional ownership
model in the introduction of more of the

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subscription model, and you sho're thinking
about the technology, we're thinking about evs

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you're thinking about, you know,
the the enancement of the technology if that

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comes with LAG you know auto drive
and the mobile idea aspect. You could

295
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think about clients potentially pivoting in the
future and looking for another way to own

296
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or USERVA, so usership or subscription
versus owning UM and and that's something that

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I think often now will the consumer
in the US. There's a couple of

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players of it. He just more
on the fine take, but just I

299
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to produce solution in the markets,
more on the fleet side. And that's

300
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an interesting things to fall us to
watch and see how the consumer demand.

301
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Are you seeing real adoption? I
mean it's passing. I was having this

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00:20:21.799 --> 00:20:25.599
debate with my son the other day
because he just bought a record player,

303
00:20:25.599 --> 00:20:26.640
which is neither you know there,
but I was kind of saying, I

304
00:20:26.759 --> 00:20:33.039
remember when streaming music first came and
the music efficionado said no one will ever

305
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use streaming because they want to own
the music. They don't want to like

306
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I can't not own this, Like
if I stopped paying Spotify, I can't

307
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listen to the Beatles anymore. Like
that's crazy. I bought it, it's

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mind I could listen to it forever, And of course the reality was that

309
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most consumers went, now, this
is just much easier. I get access

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to a huge, huge library.
I'm okay paying ten dollars a month to

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Spotify whatever and like awesome. And
so that was this moment where you thought

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people really need to own and then
turn out that they were totally fine subscribing

313
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music instead of owning it. Except
for my son with this record player now

314
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has to own physical vinyl records all
the time. It's a thing. What's

315
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all this new again? Right?
The redtrail is in? But um,

316
00:21:11.920 --> 00:21:14.680
it's interesting because it makes me wonder
if that, you know, I kind

317
00:21:14.720 --> 00:21:15.839
of go, how could you not
own your car? But then that's what

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people were saying about music teen years
ago. Maybe this is a trend that's

319
00:21:18.559 --> 00:21:22.599
there, really is is going to
be coming for us far they were able

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to get into a vehicle where they
couldn't s otherwise. Yeah, and again

321
00:21:26.680 --> 00:21:30.440
you're talking about potonomals driving. Yeah, as a technology, but just you

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know, steel has waste e guilty
for it becomes menstream. Um, but

323
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that becomes the case you might see
also just at the end of the day,

324
00:21:38.359 --> 00:21:42.079
if you're thinking about the usage of
your vehicle. I will see just

325
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you know, you at a good
sixty seventy percent of the time, but

326
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Vequali spark better at home, walk
way more than that way more than that

327
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ninety something percentage park either at home
or work. That could totally change.

328
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Also the way you know the dynamical
the future again, challenge ownership model and

329
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another another item we'll keep. We'll
keep eye. It's a lot of things

330
00:22:02.279 --> 00:22:03.839
to keep your eyes on in this
space. It seems to be very free,

331
00:22:06.359 --> 00:22:10.480
interesting, tryans happening. So what
is your advice to lenders who are

332
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in this fast moving, rapidly changing
space. A lot of things keep your

333
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eye? How do you stay out
of the curve? Raw? Do you

334
00:22:15.960 --> 00:22:18.319
keep your eye on the ball where
it's going and make the right investments?

335
00:22:18.359 --> 00:22:21.519
Like what's your advice? Have to
be flexible because like you said, it

336
00:22:21.680 --> 00:22:26.000
is changing so quickly, and be
ready to adapt and stock keep other things

337
00:22:26.039 --> 00:22:32.279
we're watching cheer point earlier it is
you have to be forward looking so you

338
00:22:32.319 --> 00:22:37.559
can put things in motion to capture
that next cycle. It's really keeping to

339
00:22:37.640 --> 00:22:42.079
watch that. Yeah, I will
come back to the concept around the client

340
00:22:42.200 --> 00:22:49.559
experience and providing like the lighting solutions
out there, digitalization of the Lune application

341
00:22:49.640 --> 00:22:55.960
process, integration with some of the
players for us Slender right though I'm not

342
00:22:56.119 --> 00:23:02.000
right Oiman with the Oyam's format matter. Personalization is another one that I care

343
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and as a former marketer, I
think it's it's it's important time to see

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what's also just we can make but
you know, application or financing process a

345
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little more personal level. Yeah,
and you know if you're thinking about just

346
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the technology and and that digital component
mobile first, automate automation, trying to

347
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apply potential AI to again, but
landing space, all those other trends.

348
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But I think are players in the
industry are needs you needs you to look

349
00:23:33.200 --> 00:23:38.160
and consider when when developing new products
and not the solution. Do you have

350
00:23:38.240 --> 00:23:41.839
an advice on how you I think
one of the things you said, Becky

351
00:23:41.920 --> 00:23:44.839
that's really interesting is this need to
be flexible. And I feel like so

352
00:23:44.960 --> 00:23:48.759
often our investments, particularly technology,
end up constraining us in terms of our

353
00:23:48.799 --> 00:23:52.920
ability to adapt to what's next.
We've spent all this time integrating one thing

354
00:23:52.960 --> 00:23:56.960
and then it's not the thing we
want. Sometimes by the time it's implemental,

355
00:23:57.039 --> 00:24:00.920
I need another thing. Are there
how do geese or advice you have

356
00:24:00.000 --> 00:24:03.640
on like, how do I build
myself you know, capabilities such that I

357
00:24:03.720 --> 00:24:07.559
can respond more rapidly and I'm not
stuck in I think maybe the chorus is

358
00:24:07.599 --> 00:24:11.640
a great example of like something that
I really have made a huge investment in

359
00:24:11.720 --> 00:24:15.319
a now like it's constraining my optionality
moving forwards. I'm just curious how you

360
00:24:15.400 --> 00:24:18.880
think about best supporting optionality flexibility in
the future when you're making investments now,

361
00:24:18.880 --> 00:24:22.319
because it feels like that's the answer
you're giving me is like you gotta be

362
00:24:22.359 --> 00:24:23.880
ready for stuff you're not ready for. How do you how do you give

363
00:24:23.880 --> 00:24:29.279
yourself an infrastructure to support that kind
of flexibility? Really making sure I guess

364
00:24:29.359 --> 00:24:33.359
that if you are implementing a solution
that um it has PUPE and integration,

365
00:24:33.759 --> 00:24:37.920
you know capabilities. So if you're
putting something in place and then you might

366
00:24:38.000 --> 00:24:42.799
have wanted to join something else in
to support the process or my API,

367
00:24:42.960 --> 00:24:49.200
so I have my my capabilities.
Yeah, think about just think from a

368
00:24:49.279 --> 00:24:53.920
thick stock. I think the industry
genre is speaking come from a space where

369
00:24:55.119 --> 00:24:59.119
and I will talk about hers as
banks, where you own your technology,

370
00:24:59.640 --> 00:25:04.240
you back in the house. Collaboration
in the future is most likely you just

371
00:25:04.359 --> 00:25:11.039
mentioned the terminal PI, but also
collaboration with various players FinTechs could be could

372
00:25:11.039 --> 00:25:15.680
be could be also a sovation here, an easy in generation and always coming

373
00:25:15.759 --> 00:25:18.920
back again just to when you build
those capabilities, making sure that it's built

374
00:25:18.960 --> 00:25:23.720
around the clients, just that it's
always simple and it's automated taking you know,

375
00:25:23.759 --> 00:25:27.559
we're talking about refinance earlier. Just
ticking all those components out and just

376
00:25:27.720 --> 00:25:33.799
making it like a very linear process
and easy and so that, plus the

377
00:25:33.880 --> 00:25:38.200
collaboration and not necessarily the need to
be owning your own platform, but later

378
00:25:38.200 --> 00:25:45.319
for its sovation out there is one
way to keep on evolving without the cost

379
00:25:45.920 --> 00:25:48.160
and the results that come with love
it. I love your point about this

380
00:25:48.200 --> 00:25:52.000
has come up frequently with my guests. But focusing on the client experiment,

381
00:25:52.000 --> 00:25:56.920
I think so often we think about
the features the bank wants, where the

382
00:25:56.960 --> 00:26:00.359
capabilities the bank needs, and you
get this checklist of stuff you're Sally needs

383
00:26:00.400 --> 00:26:03.200
to do and making sure that you're
thinking about it from the client's point of

384
00:26:03.279 --> 00:26:04.839
view. You go, oh,
it does all the things we think we

385
00:26:04.920 --> 00:26:07.960
need. And then she opened up
as user you, oh my god,

386
00:26:07.960 --> 00:26:10.319
I would never do that. Go, well, maybe that's not a good

387
00:26:10.400 --> 00:26:14.079
solution, even if it checks all
the internal risk management you know whatever product

388
00:26:14.160 --> 00:26:15.720
boxes and so it's always a good
I think a good reminded the lake.

389
00:26:15.839 --> 00:26:19.880
Ultimately, you gotta gotta I mean, customers have a Google's favorite saying when

390
00:26:19.880 --> 00:26:22.759
I was there was a competition is
just to click away. And it's like

391
00:26:22.839 --> 00:26:26.319
so true now in the digital world
that you really do have to think about

392
00:26:26.319 --> 00:26:29.720
that experience because people, if they
don't like it, they we'll go try

393
00:26:29.759 --> 00:26:33.359
somebody else real fast. All right, My last question I like to ask

394
00:26:33.359 --> 00:26:34.839
people. I'm gonna ask you,
guys, you've felt a little bit of

395
00:26:34.880 --> 00:26:38.440
this, like what's one good bold
prediction about the future of We'll just say

396
00:26:38.480 --> 00:26:42.839
the auto linic space. But good
bold prediction for us can make him go

397
00:26:42.920 --> 00:26:48.240
first that he can can collect your
thoughts like the strategy. And again in

398
00:26:48.400 --> 00:26:52.519
term of innovation, where where do
you want to go? Wherever you want

399
00:26:52.559 --> 00:26:56.119
to give? So I will stay
with the concept around like being clian centric

400
00:26:56.799 --> 00:27:03.839
and launching product and solution that meets
that clients need, being an omnichannel.

401
00:27:04.400 --> 00:27:11.799
I think if you're thinking about landers
and the various players in the space,

402
00:27:12.559 --> 00:27:21.480
looking to the DoD the OEMs and
in having solutions and capabilities in that space

403
00:27:21.960 --> 00:27:25.960
that will allow you to be driving
that better client experience a role. I

404
00:27:26.000 --> 00:27:29.440
think that's really the challenge at the
same time, at the time where the

405
00:27:29.559 --> 00:27:33.480
technologies are voting so fast, so
you have to run with those principles in

406
00:27:33.559 --> 00:27:36.720
parallels. But I think that's the
challenge. But at the same time,

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00:27:36.759 --> 00:27:41.640
the opportunity in follow us yeah,
and being able to meet the clients needs

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00:27:41.680 --> 00:27:44.359
the way that they want to be
met. I mean, because not everyone

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00:27:44.440 --> 00:27:48.240
wants to be interacted with in the
same way. So said being forward thinking

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00:27:48.400 --> 00:27:52.680
so that you're you're able to satisfy
needs just depending on you know they want

411
00:27:52.720 --> 00:27:56.480
to be interacted. It's such a
great point because one of the things I've

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00:27:56.519 --> 00:27:57.599
heard a lot that I think is
rings are true to me, is like

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00:27:59.079 --> 00:28:00.359
when people want to talk to somebody, make it easy, and when they

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00:28:00.359 --> 00:28:03.279
don't want to talk to somebody,
make that easy. And sometimes we do

415
00:28:03.359 --> 00:28:04.920
both. We say, when you
got to call somebody to do that,

416
00:28:04.920 --> 00:28:08.119
I don't want to call anybody that
somebody goal you can't call anybody about that

417
00:28:08.400 --> 00:28:11.920
I do. And of course the
more you get people, your people out

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00:28:11.960 --> 00:28:15.200
of the process that somebody can do
on a cell service way, the more

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00:28:15.200 --> 00:28:19.519
they're available to be instantly available for
the people that actually want that. And

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00:28:19.799 --> 00:28:22.720
I think that's a that's easy to
say and hard. Some of the best

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00:28:22.759 --> 00:28:30.359
advices is simple and yet very challenging
to actually execute. Well, thank you

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00:28:30.519 --> 00:28:33.359
Becky Faid for making the time today. This was great. I appreciate you

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00:28:33.480 --> 00:28:37.119
taking the time and very great insights. Yeah, and thank you. Upstart

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00:28:37.200 --> 00:28:41.920
partners with banks and credit unions to
help grow their consumer loan portfolios and deliver

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a modern all digital lending experience.
As the average consumer becomes more digitally savvy,

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it only makes sense that their bank
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additional credit models. With fraud rates
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manual processing for banks and offers a
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you're looking to grow and enhance your
existing personal and auto lending programs or you're

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just getting started, Upstart can help. Upstart offers an end to end solution

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that can help you find more credit
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digital underwriting, onboarding, loan closing, and servicing. It's all possible with

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Upstart in your corner. Learn more
about finding new borrowers, enhancing your credit

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decisioning process, and growing your business
by visiting upstart dot com slash four dash

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banks. That's upstart dot com slash
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