BenchMark - Services Programs

We offer multi-client Benchmark programs in the following areas: Auto Finance, Consumer Lending, Small Business Lending, Middle Market Lending, Fleet Management, Wholesale Auto Finance, and Equipment Leasing/Asset Finance. We also offer internal benchmark services comparing multiple affiliates or locations within a single client organization.

How Our Benchmark Programs Work

Our benchmarking process begins with a study of your processes. An on-site, in-depth review of how you currently conduct your business. This unique perspective allows us to compare the productivity of your operations to those of your peers. This is the cornerstone of the BenchMark philosophy and will enable you to assess your effectiveness and efficiency.

By definition, process benchmarking is a basis of establishing rational performance goals through the study of industry best practices. It has been proven over and over to be the best way to improve performance. BenchMark's scientifically sound methodology allows clients to:

See actual performance levels of other financial institutions
Easily understand the differences between those organizations
Break down the drivers and footings of key performance indicators
Establish reasonable goals for your own performance
Justify the changes and strategies needed to make those goals reality

Process benchmarking allows you to learn from the experience, mistakes, information and revelations of others in the industry.

Our team of consultants conducts data-collection at client sites, ensuring comparable measures across institutions before preparing their analysis and reports. In addition to concrete results, clients benefit from an oral and written presentation including:

Ranking of key performance areas for each core process
Highlight of the critical success factors within each core process
Comparison of your organization with other participants
Opportunity Gap showing the value of performance improvements
Specific changes recommended for each client organization and an action plan for achieving them

There is a distinct difference between data and knowledge. Gathering the data, converting it into information and digging into the analysis is a critical first step, but applying the knowledge is where the rewards are achieved. BenchMark's full-service consultants help clients take their organization to the next performance level by completing the circle, which begins with process benchmarking.

Auto Finance Benchmark Program

BenchMark Consulting understands the Auto Industry. We've conducted the Auto Finance Benchmark Program for over 10 years. Through this experience we've built a database of knowledge complete with factual information that proves what works and what doesn't. We begin by looking at Dealer Relations and conduct a thorough analysis of your operations all the way through Recovery and Bankruptcy.

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.

Dealer Relations includes sales strategies, calling officer productivity, preferred dealer programs, floorplanning activities, dealer approved channels and understanding what is important to a dealership from their perspective.

Application Processing reviews processing systems, data input, turnaround time, dealer entered channels and outsourcing.

Buying refers to central -vs- regional, automated decision making, loan -vs- lease, turnaround time, credit quality and buyer productivity.

Review, Booking, and Funding encompasses system interfaces, review checkpoints, error rates, "pass-through" programs, funding methods and exception handling.

Collateral Management involves lien perfection, exception processing, insurance tracking, collateral substitutions and transfers of obligation.

Customer Service covers Voice Response Unit impact, CSR productivity, multi-product service -vs- specialized product service, response time quality, targeted service levels, internet activities and speed of answer.

End of Term Processing includes off-lease processing, automation technologies, vehicle disposal methods and paid-out processing.

Collections involves collection management systems, collector productivity, delinquencies, charge-offs, incentives and impact of credit quality.

Recovery refers to repossession management, internal resources -vs- external resources, automation and incentives.

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

Home Equity Lending Benchmark Program

BenchMark Consulting understands the Consumer Lending Business, and this includes Home Equity Lending. We've conducted the Home Equity Benchmark Program for over 10 years. Through this experience we've built a database of knowledge complete with factual information that proves what works and what doesn't. We begin by looking at the profiles of our participants and conduct a thorough analysis of your operations all the way through the recovery function.

Participant Profile and Operational Risk Management (Product Offerings, Delivery Configuration and Specific Risk Management Information) includes information on products, home equity loan to value and marketing campaigns as well as strategies, channel acceptance and capture rates. It also outlines each functional core process including delivery channels, credit scores, organizational structure and product sources. For risk management, it reviews LTVs, portfolio loan position stratifications and ways lenders are mitigating operational risk.

Applications Processing is the core process that includes all activities and resources from the customer interview for application data, verifying data for accuracy and entering the data into an application processing system. The core process includes activities associated with receiving applications from the traditional branch channel, as well as all other non-traditional channels.

Vendor and Documents Management is the core process that includes management and receipt of third-party data such as obtaining credit bureau information, and requesting and analyzing any vendor-related documents such as flood, title reports and appraisals.

Underwriting involves all activities and resources to review borrower application and credit information; evaluate the value of collateral; calculate income; debt and collateral ratios; and make final credit and collateral decisions. This core process also includes the resources to identify and document any lending conditions or stipulations, as well as resources to communicate the lending decision to the customer.

Documents Preparation, Closing and Funding refers to all tasks and actions taken and resources required to schedule loan or line closing, prepare the required documentation, execute those documents, fund the credit and record the mortgage.

Review and Booking includes all activities from the point a loan or line is closed to the point it is booked on the loan accounting system. These activities generally include a package review process, exception handling of corrections, monetary data entry or validation, and booking the contract to the appropriate system.

Equity Turnaround Time measures the time it takes participants to complete one normal and one expedited product for the origination of non purchase money real estate secured credits. This time is segmented by calendar days from the receipt of an application through the initial credit decision, the credit decision through the final collateral decision, the collateral decision through the preparation of documents, the preparation of documents through closing, closing through funding and funding to booking the account to the loan or line accounting system.

Collections include all activities associated with pursuing late payments, skip tracing and other collection activities prior to charge-off or write-off. It also includes an evaluation of the influence bankruptcy has on collections performance.

Recovery, Bankruptcy and Foreclosure includes all activities necessary to collect deficiency balances after charge-off. Activities consist of calling debtors, skip tracing charged-off or written off accounts and asset searching.

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

Small Business Lending Benchmark Program

BenchMark Consulting understands Small Business Lending. We've conducted the Small Business Benchmark Program for over 10 years. Through this experience we've built a database of knowledge complete with factual information that proves what works and what doesn't. We begin by looking at product profiles and conduct a thorough analysis of your operations all the way through collections and recovery.

Product Profile includes products offered, portfolio breakdowns, amounts, maturities and thresholds. New loan activity by product and average new application and booked loan sizes are examined.

Product Delivery Configuration includes a review of the delivery methodology utilized to source small business applications as well as identifying the organizational and reporting structure of each component of small business processing.

Prospecting and Relationship Management includes activities performed to source and service small business relationships, as well as customer and prospect calls, loan negotiations and account servicing.

Application Processing includes all activities associated with preparing an application for underwriting. Central vs. decentral vs. hub environments are examined.

Underwriting encompasses all activities related to the credit decision process for new credit applications, including: financial statement analysis, review of credit score system output, collateral valuation activities, creation of approval packages and/or approval documents, obtaining additional approval levels or signatures, decision communication actions, and decision override activities.

Document Preparation involves the activities associated with the creation of loan documentation, and all loan closing steps, including: communication regarding documentation/settlement issues, creation of loan documentation, delivery of loan documents to the settlement site, pre-settlement review of documentation, lien searches, lien perfection activities, interaction with attorneys or outside vendors, loan settlements and loan funding activities.

Review and Booking includes documents review policies and procedures, booking, filing systems and procedures.

Turnaround Time is a representation of elapsed time using a sample of booked accounts. The results are reflected in calendar days from the customer perspective for the following thresholds; application to booking, application to initial credit decision, initial credit decision to final credit decision, final credit decision to completion of documents, and from completion of documents to booking to the accounting system. Three segments are assessed; objectively decisioned non-real estate secured, subjectively decisioned non-real estate secured, and subjectively decisioned real estate secured.

Portfolio Management involves all periodic actions relating to managing existing credit exposure, and all renewal processing, including: collecting periodic financial information, review of periodic financial information, monitoring of loan agreement conditions, risk rating activities, review of portfolio reports, and processing, evaluating, or underwriting loan renewals.

Collections and Recovery includes all activities relating to the management of past due accounts, loan workout initiatives, collateral disposition activities and interaction, loan restructuring and workout, collateral repossession and liquidation, and loss recovery.

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

Middle Market Lending

BenchMark Consulting understands Middle Market Lending. Through the experience we've built a database of knowledge complete with factual information that proves what works and what doesn't. We begin by looking at product profiles and conduct a thorough analysis of your operations all the way through collections and recovery.

Product Profile includes products offered, portfolio breakdowns, transaction limits, exposure limits and maximum facility terms. New credit activity by product and average new credit commitments are examined.

Product Delivery Configuration includes delivery methodology utilized to source credits, as well as organizational and reporting structures for each component of Middle Market lending.

Prospecting and Relationship Management includes activities performed to source and service Middle Market relationships. Includes customer and prospect calls, account strategizing, cross selling and client relationship issues.

Credit Analysis includes time spent gathering customer data, spreading financials and researching comparables (D&B, S&P, Moody's).

Credit Decision encompasses all activities related to the credit decision and approval process, including reviewing, underwriting, documenting and communicating the decision.

Collateral Valuation and Document Preparation includes all collateral due diligence performed prior to closing, as well as preparation and delivery of closing documents, whether internally or externally prepared.

Review and Booking includes entry of customer, facility and collateral data to the loan accounting system, as well as post-closing document review policies and procedures.

Portfolio Management involves all periodic actions related to managing existing credit exposure and all renewal processing.

Loan Servicing includes processing of monetary and non-monetary transactions, lien perfection and lien release activities, file/image management, as well as participation and syndication servicing.

Collections and Recovery includes information related to the treatment of delinquent accounts, including delinquency and charge-off rates, policies, and strategies.

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

The Fleet Management BenchMark Program

Bi-annually, a select group of banks and captive finance organizations participate in BenchMark's Fleet Management 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.

Business Acquisition: The soliciting of potential customers who intend to sign lease or fleet management contracts and the maintenance of relationships existing customers.

International Tenders Credit Decision: All activities associated with the automatic periodic review of an existing customer or the review of a new prospect. The activities usually involve evaluation of a company based on documentation as defined by the participant, possible request for additional information, and coming to a conclusion in line with the participant’s company policies.

Vehicle Model Set-up: The activities required for setting up new vehicles or updating existing vehicles in the vehicle data file. The process usually involves obtaining all vehicle model relevant data, establishing maintenance and insurance parameters, updating the data bank and making sufficient paper files available for all parties in need.

Customer Set-up: Adding of new customers to the existing portfolio. The process usually involves obtaining all relevant data of this customer, including company car policies, calculation parameter of the products sold and billing information.

Quote Preparation: All activities required for preparing a quote for a single vehicle or a group of vehicles. The process usually involves verifying that all aspects of the vehicle quote have been requested, can be met, and that the requester is entitled to order such a vehicle.

Vehicle Sourcing: This covers all activities for sourcing of a new vehicle based on a newly booked contract. The process usually involves deciding on vehicle supplier, ordering the vehicle, informing the customer about the delivery date, and approving supplier invoice for payment.

Vehicle Delivery and Contract Activation: This process begins when the ordered vehicle is ready to be delivered. It involves contact with the dealer, contact with customer, arrangement of delivery, and activation of the contract in the system. It may also include the return of pre-delivery vehicles.

Operations Support and Customer Service: This group of processes involves activities associated with managing the existing portfolio of contracts. This includes activities such as establishing physical or electronic files for newly executed contracts, obtaining and fulfilling requests for documents from other departments, processing customer payments, answering written, e-mail, or telephone questions from customers. Not included are all questions relating directly to any of the other core processes, i.e. vehicle ordering and delivery, quotation request, maintenance and tire replacement; and accident or return of pre-delivery vehicles.

Service Contract Administration: This group of processes consists of activities associated with managing of the existing portfolio of service contracts. This includes activities such as approving maintenance repairs, tire exchanges, handling of accident management, and fuel card handling.

Termination Processing: The activities required near or at the point of account termination. This typically includes contacting the customer and determining his/her options and selection, removing contract files from accounting systems, and physical or electronic files. It may also include sending written correspondence, such as cancelled contract letters, to customers.

Remarketing: The activities required for disposing any former leasing vehicle. This can occur at end of a contract, following an accident or as a result of repossession activities. Generally this includes appraising a vehicle, performing necessary repairs, and selling the vehicle.

Collections: The activities associated with pursuing payment of deficiency balances prior to charge-off (write-off). Generally, the customer is contacted in an attempt to make the account current.

Recovery: All activities necessary to collect deficiency balances after charge-off (write-off) are included in this process. General activities consist of telephoning debtors, asset searching, attorney and agency coordination, and bankruptcy administrative work. Generally, the customer is contacted in an attempt to recover the entire contract balance.

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

The Wholesale (Dealer Finance) BenchMark Program

Bi-annually, a select group of banks and captive finance organizations participate in BenchMark's Wholesale 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.

Business Acquisition: Selling wholesale finance products to existing dealers, whom have only used retail or other finance products in the past, and to new dealers, as well as increasing the volume of existing credit agreements.

Proposal Processing: Receiving of new credit proposals, proposals for enlargement of agreements, and preparation of credit decision. This includes documentation in the system and gathering of all necessary information.

Credit Decision: Reviewing and analyzing of credit proposals (new proposals, enlargements, prolongations) and the respective information, decision, and communication of the decision.

Set-Up Credit Agreement: Setting up of credit agreements in the system and/or in paper files. All activities connected with the administration of accounts for the dealer. This includes the balancing of the account, offset of receivables in favor of the dealer with payments due to the manufacturer, and posting of all incoming or outgoing payments. Activities necessary to answer customer questions during the regular term of a credit agreement.

Administration of securities (especially related to vehicles, such as vehicle titles), including receipt, review, filing, and retrieval of these documents.

Booking of Individual Contracts: All activities connected to the financing of individual vehicles; whether new (vehicles in stock, demonstration vehicles, showroom vehicles) or used; whether own or other brands (captives). This includes the receipt of the request, the evaluation of the value of the vehicle, the decision about the financing, the booking of the contract, and the payment to the dealer.

Incoming Payments: Receipt of regular payments (interest, repayment of capital, fees) and allocation to the respective contracts.

Inventory Checks: Check of the vehicles in the inventory of a dealer and comparison with the list of financed vehicles as protection against fraud and check of the value of the financed vehicles.

Termination of Contracts: All activities connected with the termination of an individual contract, like receipt and posting of outstanding finance amount, settlement, and termination of the respective account and release of securities.

Collection: Intensive administration of customers with a high credit risk and past due accounts in order to avoid or minimize any losses for the bank.

Realization of Securities: Retrieval and/or repossession of securities, sale of assets, and posting of payments to the account.

Recovery: All activities connected to terminated credit agreements, including cooperation with internal or external specialists (lawyers, recovery agents).

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

The Equipment Leasing/Asset Finance BenchMark Program

Bi-annually, a select group of banks and finance organizations participate in BenchMark's Wholesale 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.

Acquisition: Building up of and servicing of business relations to new and existing customers by visiting the customer and/or phone or written contact. This includes the preparation of the contacting by collecting information about the customer, traveling to customer visits, and the time of the visit itself.

Customer Set-Up: Setting up of the master data for an interested party or new customer, either in paper files or in the system.

Contract Processing: All activities starting with the receipt of a demand for a specific proposal for one or several capital goods and ending with the transmission of the proposal. This includes the examination of the existing information, the creation of proposals (manually or by system), and the transmission of the proposal to the customer by phone, fax, letter or email if necessary, it also includes follow up negotiations and sending out of leasing applications.

Credit Evaluation: All activities in direct connection with the approval or rejection of a credit line, a leasing application, or a preliminary inquiry concerning a specific deal. This includes the evaluation of existing data, requesting additional information, the credit evaluation, and communication with the customer.

Contract Activating and Supplier Payment: All activities in connection with the implementation of the contract and the activation of the capital good. This includes the payment of the supplier, demanding the first monthly installment, and the payment of a commission to an external agent.

Archive: Establishing physical or electronic files for newly executed contracts and obtaining and fulfilling requests for documents from other departments.

Payment Processing: Receipt of regular payments (Interest, repayment of capital, fees) and allocation to the respective contracts.

Portfolio Management: All activities associated with the automatic periodic review of an existing customer. The activities usually involve re-evaluation of a company based on documentation as defined by the participant, possible request for additional information and coming to a conclusion in line with the participant's company policies.

Customer Service: Encompasses handling of all requests for information or action on open, active accounts, whether by phone, mail or e-mail. Included are also research activities to fulfill the request of the customer.

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 goods of a lease or finance option contract. It also encompasses those activities tied to final settlement of customers. These activities include work on early settlements too.

Remarketing: This process consists of the activities associated with the sale of assets that the participant has taken into possession through either end of lease term or repossession. Assets are sold through different channels, depending on their nature.

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

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.