Carputty announces that a third of its Flexline applications are now AI-decisioned, reaching a significant milestone in the Company’s mission to bring greater transparency and reduce subjectivity in the automotive finance industry.
Carputty (“Carputty” or the “Company”), the fintech company modernizing auto financing and ownership, announced the next evolution of its platform. Having set out to re-engineer auto financing and ownership, Carputty has developed AI solutions that deliver a better consumer experience and more objective financing decisions. With recent updates to its platform, the Company has announced that up to one-third of applications from prospective members are now AI-decisioned.
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Carputty’s platform heralds a new era of faster, smarter, and fairer data-based decisions, setting a higher standard in the automotive finance industry. With traditional auto lending often involving subjective processes and lacking transparency, there is a potential for personal bias and manipulation, leading to undesirable outcomes like bad loans that negatively impact both recipients and capital markets. With AI-powered underwriting, the platform leverages direct bank data via Plaid to accurately assess each applicant’s financial situation and ability to repay. This data-driven approach alleviates the potential for subjective judgment and human bias.
“Carputty’s groundbreaking AI-driven solution marks a milestone in the auto finance industry,” said Patrick Bayliss, co-founder and CEO at Carputty. “By harnessing the power of AI, we provide an enhanced user experience and make finance decisions based solely on objective data, free from any influence of subjectivity, misaligned incentives, or biases. Our focus remains resolutely on delivering unparalleled value for our customers and partners.”
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Key Features:
- AI-based Application Review & Underwriting: Carputty’s platform utilizes AI algorithms to anonymously and securely review and evaluate all bank deposits and withdrawals to swiftly determine critical metrics such as Debt-to-Income ratios. The platform’s use of open banking standards fosters a more reliable view of existing debts, free from memory-based errors or biases, and ensures a level playing field for all income types including “non-traditional” earnings for entrepreneurs and contractors.
- V3 Valuation™ System: Carputty has leveraged AI and industry-available data to create the V3 Valuation System, a more useful approach to vehicle valuation for car owners. Unlike conventional valuation calculators, V3 goes beyond basic assessments to determine historical, current, and projected future values for almost any vehicle. By providing consumers with this 3-dimensional view of vehicle values, V3 empowers users to objectively compare vehicles’ value over time, and easily identify optimal buying or selling opportunities throughout their vehicles’ lifecycles.
Carputty’s integration of AI and advanced technologies, including the recent addition of Plaid IDV, goes beyond consumer benefits, presenting a solid business proposition. By ensuring more objective and transparent loan decisions, Carputty offers capital markets a bolstered assurance in the predictability of repayments and overall financial stability of its loans.
Joshua Tatum, the co-founder and Chief Product Officer, emphasized, “At Carputty, our vision encompasses more than just enhancing the consumer experience. We’re dedicated to forging a platform that is mutually beneficial. By investing in AI and aligning with premier partners like Plaid, we’re not only streamlining processes but also bolstering trust and efficiency for car dealers, capital markets, and everyone else involved in automotive sales. Our platform is designed with adaptability in mind, ensuring our innovations are effortlessly assimilated by our partners, driving holistic industry advancement.”
Carputty’s AI integrations and enhanced fraud protection is another milestone in the company’s ongoing commitment to security, innovation, and customer-centric solutions. By taking decisive action against financial fraud and identity theft, Carputty is spearheading positive change within the automotive finance sector.
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