The Allied Angle

Beyond the Storms: Protecting Lenders in a Volatile Environment

In this episode of The Allied Angle, we discuss the rising risks facing auto lenders, especially in the wake of recent hurricanes Helene and Milton. Allied's Vice President Claim and REPO Plus Operations Scott Myers and 2nd Vice President RMO Product Management Mike Batchelor dive into the impacts on loan portfolios, the surge in GAP claims, and insurance rate hikes. 
 
  00:46   Meet Mike and Scott 
  04:25  The market trends most influencing auto loans and the risk landscape.
 10:01  Why people don't talk about the high cost of auto insurance and the relationship between high insurance costs and high vehicle prices
 11:55   The impact of natural disasters on everyone's insurance premiums and how they will affect future claims.
 16:59  How financial institutions should adapt their collateral protection strategies to mitigate risks amid current market pressures. 
 21:00  The advantages of an insurance tracking program for financial institutions and the risks associated with not having one in place. 
25:07  What financial institutions should lookout for when utilizing technology to optimize delinquency management and loss mitigation. 
28:19  The most beneficial tools to help navigate the future of risk management.
  

The High-Stakes World of CPI & GAP: Understanding the Regulatory Landscape

In this episode of The Allied Angle, Allied's Chief Legal Officer, Kelly Miller, and SVP Client Experience and Risk Management, Anne Holtzman, address the regulatory and compliance hurdles that lenders face when managing Collateral Protection Insurance (CPI) and Guaranteed Asset Protection (GAP) programs.
 
In this episode: 
:40  Meet Anne and Kelly
5:46  The partnership between business and legal sides when it comes to risk management.
9:20  A brief history of CPI and the factors that have contributed to its current state.
18:24  How the regulatory landscape has changed regarding CPI and GAP.
25:38  The compliance challenges lenders face when managing their CPI and GAP programs.
30:06  The differences between federal and state regulations. 
34:14  Why states don't necessarily follow federal regulations. 
37:34  Litigation risks lenders face related to CPI and GAP. 
42:09  Advice for lenders on mitigating the risk of class action lawsuits related to CPI and GAP product refunds.
44:39  Best practices for handling product refunds and potential regulatory penalties for not managing them properly.
48:11  Staying ahead of regulatory changes and avoiding penalties. 
50:51  The future for risk management products and how lenders should prepare.  
 
 

Risk & Repos: The Current State of Auto Financing & Delinquencies

In this episode of The Allied Angle, Allied's VP of Recovery Services Brooks Stewart along with special guest Melinda Zabritski, Head of Automotive Financial Insights for Experian Automotive, join the show to discuss the rise of delinquency rates and the cost of buying a vehicle in today's market. 
 
In this episode:
 
00:42  -  Meet Brooks and Melinda
04:14  -  The trends that are contributing to the rise in delinquency rates.
06:35  -  How are FIs adapting their risk management strategies to adapt to the rising delinquency rates? 
09:27  -  The reasons behind the increased costs of purchasing a new vehicle.
14:45  -  How consumers have responded to these increased costs.
17:39  -  How are credit unions balancing competitive rates with the need to manage risk in the current market? 
21:46  -  The changing demographics of borrowers and the generational changes impacting the buying process. 
26:33  -  Are younger generations more likely to lease or buy? 
28:05  -  How these demographic changes are influencing lending strategies and product offerings. 
30:33  -  What impact have these younger generations had on delinquency rates? 
35:47  -  Predictions on what the future holds for both delinquency and auto finance rates. 
38:07  -  Advice for lenders on navigating this challenging time for auto lending. 

Getting B2B (Back2Branding)

The Allied Angle is back with Amy Level-Hearn, VP of Marketing & Communications. Tune in as she shares insights on the evolution of marketing in the financial sector, the importance of branding post-banking collapse and the rise of generative AI and digital transformation. 
 
In this episode:
 
00:41 - Meet Amy Level-Hearn
03:33 - Amy's path to leading the marketing team for a company that supports financial institutions.
05:25 - How has the credit union industry changed from a marketing perspective?
08:13 - What are the marketing challenges financial institutions face today, even with the evolution of technology?
09:33 - The stressors a VP of Marketing faces.
12:44 - What goes into laying the foundation for a successful corporate brand?
16:56 - The main focus credit unions should have when building and maintaining a strong brand.
18:33 - How has the digital transformation impacted marketing strategies for FIs?
20:07 - How credit unions can use data to attract the attention of Millennials and Gen Z.
21:33 - What are some of the must have tools that any FI or credit union could benefit from?
23:02 - What current marketing trends are you stoked about?
24:39 - Marketing trends: Fab of Fad?
32:18 - What will marketing look like in the future?

PART 2: Two Ears, One Mouth: Are you listening to your members?

Lending is continually evolving and changing, but what are the top concerns facing financial institutions today regarding lending? Learn how leveraging data, technology, and the impact of AI is changing the lending landscape in this panel discussion featuring Allied Solutions’ Mark Rodriguez and Jack Imes, along with special guest Josh McAfee from Callahan & Associates. This episode is part 2 of 2 in our discussion.
 
In this episode:
00:27  What practices should FIs be adopting to handle these changes?
05:55  In this constantly changing landscape, what does the future of lending look like? 
14:38  How borrowers attitudes and expectations are changing when it comes to delinquencies.
20:33  What FIs should do to keep their members in mind during difficult times, while keeping their portfolios in mind as well.
27:08  Advice you would give on how to navigate the current state of lending in 2024.

PART 1: Two Ears, One Mouth: Are you listening to your members?

Lending is continually evolving and changing, but what are the top concerns facing financial institutions today regarding lending? Learn how leveraging data, technology, and the impact of AI is changing the lending landscape in this panel discussion featuring Allied Solutions’ Mark Rodriguez and Jack Imes, along with special guest Josh McAfee from Callahan & Associates. This episode is part 1 of 2 in our discussion.
 
In this episode:
00:21  Meet Mark, Jack, and Josh!
05:05  The top 3 topics, or concerns, you're hearing from FIs in regard to lending. 
09:23  Why lenders are so concerned. Should they be more concerned? 
15:34  How has this list of concerns changed since the start of the pandemic?
20:42  How high interest rates and costs are affecting delinquencies. 
27:38  Leveraging data to mitigate risks associated with delinquencies. 
33:44  The impact of emerging technologies on delinquency rates, charge offs, and loan loss provisions.

Ripe for Change: The Evolution of Financial Risk Management

We all have the same 24 hours in a day, so the question is: How can you do more in that time to improve outcomes? Allied's Senior V.P. of Risk Management Operations, Doug Falvey, joins The Allied Angle to discuss innovation in RMO.
[:26] Meet Doug Falvey
[2:42] What is Risk Management Operations? 
[5:13] What does "staying innovative" mean when it comes to RMO? 
[7:45] The RMO team are problem solvers and solutions deliverers. 
[9:45] What needs are you seeing from the market right now, and how often are they changing? 
[11:30] How will AI impact RMO and what are the risks?  
[13:08] How important is the user experience when it comes to RMO? 
[15:16] New products are like fruit ripening in the field. 
[18:17] Tell us about Asset Recovery Management (ARM) and why it was developed.  

Take Care of Borrowers and Keep Regulators at Bay

Let's talk regulatory compliance. Governing bodies are cracking down on ancillary product refunds and more.  Allied's Peter Krall joins us to dissect the regulations and discuss how financial institutions can keep their borrowers protected. 
 
In this episode...
 
[:27] Meet Peter Krall
[4:20] What is Product Refund Liability?
[6:51] The state of Product Refund Liability in Q1 2024
[7:51] How do consumers know they could receive a refund?
[9:41] How are current market conditions affecting Product Refund Liability?
[11:53]  What should be a top priority when dealing with increasing regulations? 
[15:43]  The conditions that caused the increased scrutiny from regulators.
[19:03]  Allied's role as a leader in this period of increased regulations. 
[20:12]  Advice for an auto loan servicer navigating through the refund process. 
[22:41]  What can servicers do to reduce their risk? 
[24:19]  The role innovation plays in managing product refunds. 
[27:50]  Who regulates the dealers? 
[29:02]  The top challenges clients are facing. 
[31:09]  "Take care of your borrowers, or the regulators will take care of you."    

Achieve Organizational Success Through a Coaching Culture

The financial industry is not immune to challenges in company culture and employee retention. That's why sales coaching, leadership training, and other key investments are critical to ensuring your financial institutions are set up for success. Allied's own Julie ann Wessinger, Director, Client Performance Strategies, joins the podcast to discuss the ROI benefits of improving your culture. 
 
In this episode...
 
[:20] Meet Julie ann Wessinger
[2:51] What role has learning and development played since COVID, and why the increasing demand for it? 
[3:22] The need for training and mentoring tools
[3:40] COVID and remote work shed the spotlight on the lack of sufficient management training. 
[4:00] Managers are promoted many times with little or no formal training. 
[4:58] Did you see that time (COVID) really weeding out a lot of managers? 
[5:31] Are you seeing that companies are trying to get this coaching? 
[6:08] Why cultural transformation is so vital and what challenges or gaps are you seeing?
[7:16] Employees need to embrace a growth mindset. 
[7:49] Helping leaders understand how to communicate with diverse generations and styles. 
[9:21] 88% ROI with training with coaching, can you explain that for us? 
[10:26] How is technology changing the selling process for companies?
[11:50] When it comes to the salesperson, what kind of training and development are crucial to handling this new type of consumer? 
[12:34] The ability to build genuine trust is more important for salespeople than ever. 
[13:05] What business leaders are looking for in today’s landscape, and how does the salesperson of today provide value?
[14:51] Do you see the older generation of salespeople will retire earlier, or adapt to the new ways? 
[15:59] Three pieces of advice for leading today’s salesperson 

Redefining Innovation for Financial Institutions in 2024

From AI and analytics to culture and more, tune in for an in-depth look at how financial institutions can innovate to keep up with the latest trends. Allied Solutions' EVP and Chief Growth Officer Mark Bugalski joins us for an insightful discussion on growth and innovation strategies in the financial services industry. 
 
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In this episode…
 
[1:03] Meet Mark Bugalski
[5:51] Allied’s focus in 2024
[6:48] In terms of technology and data, we’re probably going to spend about $75M in 2024
[7:31] We can’t lose sight of helping our clients maximize non-interest income
[10:00] Another area I think is a theme for our clients is ROA management, expense control, and operation efficiency
[11:58] Delinquency rates have always been an indicator of upcoming repossession activity and foreclosure activity
[13:50] GenZ, that demographic is pretty powerful
[15:37] When we think about innovation organizationally, we lump it into three groups
[18:31] Technology is awesome, AI is awesome, but you do run the risk of privacy violations, fraud…
[20:28] A hot topic for 2024 is….
[22:29] (AI) The impact has been profound, but there’s so much more
[25:44] There’s a difference in sounding great and deploying it to the real world
[28:00 ] From a credit union perspective, in a lot of cases when it comes to technology, tend to be a little bit more nimble
[30:33] “Innovators are thought leaders and thought leaders innovate” — what does that mean?