Financial institution auto loan portfolios continue to grow annually. In fact, Experian1reported that auto loan balances climbed to $1.18 trillion in the first quarter of 2019, a 6.5% increase from 2018. And, as many lenders know, when your portfolio grows, as does the risk of delinquency.
If your portfolio is expanding, you may be evaluating your internal operations and expenses to help you determine potential costs and impact to scaling your collections department versus outsourcing one or more aspects of your operation to a third party.
As your financial institution undergoes the evaluation process, here are seven questions to ask yourself and your team to determine what option best fits your institution’s needs.
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