Carputty has added artificial intelligence (AI) solutions to its auto financing platform and says that one-third of the applications it receives are now AI-decisioned.
AI makes for faster, more transparent and less subjective decisions, the FinTech focused on auto financing and ownership said in a Thursday (Sept. 14) press release.
Traditional auto lending processes often suffer from subjective assessments and a lack of transparency, leading to personal bias, manipulation and bad loans, according to the release.
Carputty said its platform addresses these issues by utilizing AI-powered underwriting and direct bank data to assess an applicant’s financial situation and repayment ability. By relying on objective data, Carputty said it eliminates subjective judgment and human bias.
“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,” said Patrick Bayliss, co-founder and CEO of Carputty.
Carputty’s platform boasts several key features, including AI-based application review and underwriting, according to the press release. This process utilizes AI algorithms to securely review bank deposits and withdrawals, enabling swift determination of critical metrics such as debt-to-income ratios.
Additionally, the platform incorporates the Carputty’s V3 Valuation System, which leverages AI and industry-available data to provide a comprehensive approach to vehicle valuation, the release said. This system allows users to objectively compare vehicle values over time by considering historical, current and projected future values.
The integration of AI and advanced technologies, such as the recent addition of Plaid IDV, not only benefits consumers but also presents a solid business proposition, per the release.
“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,” Joshua Tatum, co-founder and chief product officer of Carputty, said.
Carputty was launched with the mission of disrupting the car financing business and offering complete transparency, increased flexibility and quick answers to the loan information car buyers seek, the company said in 2021 when announcing its seed round.
“Our mission is a big one: to lift the veil from car financing and provide real-time flexible lines of auto credit in just minutes,” Bayliss said at the time.