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Issue date: 31st October 2006
AVMs streamline second
charges
Automated Valuation Models (AVMs) can deliver significant
efficiency benefits and cost savings in the second charge
market, according to financial software solutions provider
Target Group. Secured loan providers such as Picture Financial
Group are already reaping the benefits of integrating this
powerful technology into their wider IT infrastructure. As
a result, they are reducing costs, timescales and fraudulent
applications and gaining competitive advantage through Point
of Sale (POS) offers.
Much recent attention around AVMs has been focused on the
first charge market. However, integrating AVMs into the second
charge loan application process also brings significant benefits
in the majority of customer cases. Spearheading this new approach
from its launch in 2004, Picture incorporated Hometrack’s
AVM directly into its application systems as part of its ambitious
plans to become a major name in the consumer finance sector.
The real-time integration of Hometrack’s AVM into the
IT solution developed for Picture by Target Group allows loan
consultants to verify customer valuations within seconds.
This information is then automatically included within the
application data and may lead to a POS offer. As AVMs do not
always accurately reflect property values – particularly
recent house modifications – an associated confidence
level is also given which allows Picture to determine whether
a subsequent, more detailed valuation is required. The use
of AVMs can potentially reduce the individual cost of customer
acquisition by up to £180.
The entire Picture technology infrastructure is built to streamline
the secured loan process. It uses a range of Target applications
which combine to provide an end-to-end solution for managing
the entire loan lifecycle. Target also created a powerful
data warehouse for Picture: this enables a single point of
access to data from a wide range of applications, including
third party data sources such as Hometrack AVMs.
According to Neville Allport, Chief Executive of Picture Financial,
“When we established Picture, we needed an all-encompassing
IT solution which would help us to differentiate ourselves
and achieve competitive advantage. Key to this is making loan
applications as fast and efficient as possible. By integrating
AVMs into the Target solution, we are achieving our aim and
are considerably reducing both time and the costs.”
For further information contact
Gemma Polding, Marketing Executive - Tel: 029 20301593
Target, Target House, Cowbridge Road East, Cardiff, CF11 9AU
Tel: +44 (0)2920 301 401
email: gemma.polding@targetgroup.net
Website: http://www.targetgroup.net