Sopra and Vero Partner on Wholesale Auto Financing Solution

Sopra Banking Software (SBS) and Vero Technologies have joined forces to bring digital, wholesale auto financing capabilities to local and regional U.S. banks, credit unions and specialized finance companies.

This partnership aims to address the challenges faced by smaller community financial institutions in the wholesale financing industry, the companies said in a Tuesday (Dec. 19) press release.

Wholesale financing, also known as “floorplan” financing, is a lucrative business model for auto manufacturer captives, banks and lenders, according to the release. However, many aspects of this process still rely on outdated and manual systems, making it difficult for even the largest lenders to scale their operations. Smaller institutions face even greater challenges in this regard.

To tackle these inefficiencies, SBS and Vero will provide a wholesale financing solution tailored to the specific needs of U.S. small- to medium-sized banks and lenders, the release said. SBS’s Sopra Financing Platform will power lenders’ back-office wholesale financing operations, while Vero will offer its digital front-end platform, including services such as application underwriting and managing loan portfolios.

This collaboration aims to introduce operational efficiencies at scale for institutions with limited resources for wholesale financing, per the release. By streamlining processes and providing end-to-end services, SBS and Vero will enable these institutions to compete more effectively in the wholesale auto finance industry.

In addition to the technology platform, the partnership between SBS and Vero will also offer the option for lenders to fully outsource their wholesale financing operations through Vero’s managed servicing arm, according to the release. This allows lenders to scale their operations without having to hire additional employees.

The partnership will support SBS’s continued expansion of its wholesale financing business in the U.S., the release said. The companies plan to collaborate on future products to better cater to the evolving needs of the wholesale auto finance industry.

In another recent development in this space, Carputty added artificial intelligence (AI) solutions to its auto financing platform in September, saying that the technology will make for faster, more transparent and less subjective decisions.

Also in September, LendingClub picked Santander Consumer as the primary loan servicer for its auto refinance portfolio.