Insurers and brokers should take note that manufacturers are setting up their own car rental/lease schemes. Instant approval, online spec choices, remote delivery and there is no reason why insurance couldn’t be included as part of the package. Think about it, if a manufacturer has all the info required for a credit check, they can certainly work out a PAYG quote in seconds too. It is possible that the HNW consumers, the better risks, might be skimmed off the top of the motor insurance market. Here’s the latest from FICO, who are running the platform for Volvo;
Volvo Cars has used the cloud-hosted FICO® Platform to digitize and accelerate the customer onboarding process for its new vehicle subscription service, Care by Volvo. By automating the process, Volvo has cut the credit check process on applicants from three days down to seconds.
Care by Volvo is a vehicle subscription service (Mobility-as-a-Service) designed to let customers enjoy the benefits of a new Volvo, without the challenges of owning one. For a fixed monthly fee, Volvo provides subscribers with a brand-new Volvo and covers all regular service, maintenance costs and breakdown cover. The service was introduced to reflect the shift in consumer preference toward car usage and away from absolute ownership.
“When we piloted Care by Volvo in Germany, we used manual credit reference checks, but this took too long and wouldn’t scale as we rolled the program out across Europe and North America,” said Fredrik Nero, product owner at Volvo Cars. “We needed to process applications faster, and approve applications in real time, in line with the Care by Volvo digital vision. Moving to FICO and its cloud-hosted digital decisioning solution gave us the speed and consistency we needed to improve the service and roll it out.”
Volvo adopted various components of the FICO Platform — FICO® Decision Modeler, FICO® Application Studio, FICO® Data Orchestrator Data Acquisition Module — in a cloud-hosted version for maximum efficiency. The solution connects to various external data providers, provides a workflow for managing referred decisions and is integrated with the digital sales channel. It is used for both consumer and business subscribers.
Care by Volvo achieved its goal of real-time decisions for more than 80 percent of applications, with straight-through processing. As a bonus, the FICO-powered solution is being extended beyond Care by Volvo to all digital sales and new battery electric vehicles as the Volvo Digital journey progresses.
The FICO® Platform provides the ideal decisioning foundation companies need to successfully achieve digital transformation. It provides unprecedented insight into customers’ immediate and future needs by eliminating data silos and enabling interoperability between enterprise applications. FICO was named a leader by Forrester Research in The Forrester Wave™: Digital Decisioning Platforms, Q4 2020.