The Retail Auto Finance BenchMark Program

Bi-annually, a select group of banks and captive finance organizations participate in BenchMark's Retail Auto Finance BenchMark Program. These studies are conducted separately in major European countries. The purpose is to garner as much information about how your operation compares to your competitors, as well as uncover any trends in the industry and help you learn from other's mistakes and successes.

Areas We BenchMark
As we analyze the following areas (core processes), you'll see how you're alike and different from your peers with respect to: workflows, technology utilization, department structuring, and operating policies.

Sales Channels (Dealer Relations): Comprises those activities centered around establishing new and maintaining existing relationships with dealers and other sales channels. This includes dealer visits, phone calls, and lender-sponsored meetings designed to facilitate continued business relations.

Proposal Processing: The preparation of finance and lease proposals received from dealers or other channels prior to credit evaluation. This often includes data entry into a proposal processing system, obtaining credit bureau information, and verification of customer information.

Credit Evaluation: The activities and analysis performed to determine whether or not to approve the submitted proposal. Specific activities include analyzing credit histories and determining the creditworthiness of applicants and communicate the credit decision to the dealer.

Turnaround Time: BenchMark Consulting International considers turnaround time from the perspective of the dealer. Dealers perceive turnaround time from the moment a proposal is sent to the financial services organization to the time the initial credit decision is communicated.

Review, Booking & Payout: The activities from the receipt of new contracts (or fax copies hereof) to the point these contracts are booked into an accounting system. These activities generally include a contract review process, correction of errors, monetary data entry or validation, booking the contract to the appropriate accounting system, and funding the dealer.

File Setup: Activities include preparing the physical or electronic contract and title files and or initial input into any file tracking systems for new contracts immediately after they are booked into the accounting system.

File Maintenance: The activities associated with fulfilling document and/or file and/or title requests by other organization employees. This may involve updating applicable file tracking systems.

Payment Processing: Process incoming payments for customer accounts. Includes non-electronic payments, such as checks and cash, and electronic payments such as direct debit, standing order or payment book, that do not post automatically and require manual work.

Customer Service: Encompasses handling of all requests for information or action on open, active accounts, whether by phone, mail or e-mail . Included are research activities to fulfill the requests of the customer and special cases such as total loss or exchange of collateral.

Termination Processing: This process consists of activities required near or at lease maturity, as well as activities at or after pay-off. The activities include telephone calls to the customer and/or dealer to determine who will ultimately purchase the vehicle of a lease or finance option contract. It also encompasses those activities tied to final settlement of customers. These activities would include work on early settlements, as well as those that are settled through receipt of the final payments.

Collections: The activities associated with pursuing payment of delinquent balances prior to termination. Generally, the customer is contacted in an attempt to make the account current.

Remarketing: This process consists of the activities associated with the sale of vehicles that the participant has taken into possession through either end of lease term or repossession. Vehicles are typically sold through auction or to dealers.

Recovery: Includes those activities on accounts that have progressed beyond the delinquency stage handled by collections. These accounts include those referred to legal counsel for resolution as well as those accounts assigned to outside collection agencies.

For more information contact us at info@benchmarkinternational.com.

Top | Back

Retail Auto Finance Services

In most instances, BenchMark utilizes a three-phase approach beginning with an assessment of the current situation that identifies the potential value associated with change. The second phase involves a client & BenchMark partnership to design a new target business environment. In the final phase, BenchMark implements the determined changes in order to realize the desired client goal(s). Typical BenchMark engagements include:

Operational Performance Improvement

Operational support areas are critical to the financial success of every financial services company. Whether it's check processing, loan operations, call center or collections, operations provide every organization the ability to deliver products and services to their customers. In most cases, these products and services are intended to differentiate their organization from their competition. Operational support areas are often characterized by the following: large numbers of regionalized or centralized staff, multi-shift operations, large fixed and variable expenses, and work environments driven by inconsistent volume on a daily, weekly, monthly and / or quarterly basis. These characteristics often present significant challenges when presented with management's objective to do their jobs "better, faster, cheaper!"

BenchMark is uniquely qualified to successfully address the client's critical objective of delivering products and services in the most efficient manner possible. Our assessment methodology ensures we understand how, why, when, where, and who performs all operational functions because our design recommendations will be unique to your organization. We know there is no one best way of doing any process when you consider organizations' strategies, cultures, policies, technology, geography, and other factors.

Using BenchMark's proprietary database of operational performance metrics, we are able to objectively quantify and support process improvements that will directly impact an organization's overall efficiency and effectiveness. Each design is tailored to support our client's overall strategy and corporate culture as well as work within potential policy, technology, and geographic limitations yet still realize desired operational productivity (efficiency and effectiveness) improvements. Attaining these desired outcomes will have a positive impact on the cost to deliver specific products and services.

Service Level Improvement

Meeting or exceeding customers' (internal or external) expectations requires constant supervision, analysis, and development. With the ever-changing needs of the market, you cannot afford to overlook this critical management area. Providing excellent customer service is not free; however, knowing your customer, understanding their needs and expectations, and providing the products and services in an efficient and effective operational unit will ensure you provide cost-effective customer service.

BenchMark defines customer as "any entity a specific department or organization views as the recipient of that department or organization's product or service." For example, an underwriter's customer may be a branch employee (internal) or mortgage broker (external) and a branch manager's customer may be a new homeowner in his neighborhood (external). In either case, the organization's staff is charged with meeting or exceeding their customers' expectations.

Using critical information attained during the assessment phase of an engagement, we are able to understand what and why current service levels are being attained. By relying on information from our proprietary database and the experience or our consultants, we are able to objectively recommend cost-effective service level improvement opportunities.

It is a fact that operating systems and procedures are only as good as you continue to make them. Our track record in this area alone has provided more than enough proof to our clients that we can help.

Technology Optimization

"It's a poor musician that blames his instrument!" BenchMark views technology as an enabler, not as the primary driver of an efficient operation. Following our assessment methodology ensures we understand how, why, when, where, and who performs all operational functions. Upon completion of the assessment, we will have identified all significant non-value added steps in your process. We will have also identified many processes that are performed manually or potentially not being performed at all. We will then know how the current processes and technology utilization are impacting service levels and operational efficiency.

By reviewing your existing technologies through this in-depth analysis of your current workflows and business processes, we can effectively and objectively determine if you are using your technology to its fullest potential.

Quite often, technology is purchased to automate current processes whether current processes add value or not. Often, new problems are created because not enough is known about an organization's processes and procedures. BenchMark identifies these "value added" processes and then evaluates whether a client's current technology can automate and/or improve upon the current manual process. In other words, we identify how you can get the greatest benefit from current and / or new technology.

Operations Consolidation

Numerous mergers and acquisitions in the financial services sector, as well as routine cost-cutting exercises, have created a significant demand for operations consolidations in order to meet M&A and overall financial goals. Operation consolidations are complex, employee and customer-sensitive, high profile events. BenchMark is uniquely qualified to plan and successfully execute a consolidation plan because before we make a plan, we gather as much field information as we can and we compare it against the best practices in the industry -- all in order to create a consolidation plan that is best for you, and uniquely yours.

And when we've created that new central "core" environment, we then conduct a post-consolidation review to ensure all goals are being met, and that your new centralized operation is operating to your satisfaction.

Project / Change Management

Virtually every organization has an example of a project that exceeded its budget and / or timeline or did not achieve its desired results. Projects typically do not fail because of lack of effort, but because of poor planning and not strictly adhering to a proven, effective project management methodology. BenchMark has earned an excellent reputation for planning and executing on projects due to talented management and a closely followed, standardized project management methodology. BenchMark understands that tireless planning, effective and timely communication, and assigning accountability are critical components of a successfully completed project.

Running successful assessment, design, and implementation projects requires adherence to strict enforced project management methodology. For that reason, when BenchMark manages a project, even when client staff are represented on the project team, all team members are expected to follow the methodology and are held accountable for responsible tasks. This consistency in process leads to successful results.

BenchMark has had success training clients on effective project management skills and methodology. However, we have more frequently been engaged to use our staff and project management knowledge to successful implement critically important projects on time, within budget, and meeting all project success measurements.

Top | Back