SAVE provides quick credit approval at the point of sale through a cloud-based system, says Slobodian.

SAVE provides quick credit approval at the point of sale through a cloud-based system, says Slobodian.

Artificial intelligence, or AI, has made its way into the automotive aftermarket. Snap Finance LLC is using it to improve credit approval and increase retail tire and service sales.

According to Executive Vice President Ryan Slobodian, the Snap Artificial Intelligence Verification Engine (SAVE) takes into account more than 650 data points to develop a profile of each customer. That’s more than a traditional FICO Score, which has been a prime determiner of credit approval for decades.

“It’s all done through a cloud-based platform that the dealer uses at the point of sale,” says Slobodian. “We know that people are much more than a FICO Score.”

As each profile is added to the database, SAVE has a better understanding of who should receive credit and who should not, who is reliable and who is potentially fraudulent

Story directs the data science and analytics team at Snap Finance.

Story directs the data science and analytics team at Snap Finance.

“As the environment changes, the model adapts and learns on its own,” says Nate Story, head of data science and behavioral sciences services. “The SAVE algorithm also can identify merchant fingerprints, if you will, and is sensitive to that.”

The platform is updated with new data points six to eight times a day, says Tyler Hunt, manager of data science and engineering. “The AI is constantly teaching itself over time to produce the most credit approvals possible.”

Snap Finance, which also works with other industries, built the SAVE model for tire and wheel stores from the ground up.

“We continue to find new variables that are important,” says Slobodian. “And sometimes the ones that aren’t as important are removed.”

Since implementing SAVE technology, Snap has been able to increase approvals at brick-and-mortar tire stores to four out of five people, many of whom couldn’t qualify for traditional financing.

Hunt was the architect for the Snap Artificial Intelligence platform.

Hunt was the architect for the Snap Artificial Intelligence platform.

“We’re trying to disrupt traditional business models,” he says. “Everything today has to be fast and efficient.”

“Simplicity is the highest form of sophistication. Our goal is to make it simple for the customer.”

0 Comments