40% TCO Reduction: Transforming Loan Servicing Operations for a Leading Auto Finance Provider

Client Overview

The client is a prominent U.S.-based third-party loan servicer specializing in auto loans and financial services. Known for delivering world-class customer experiences through tech-enabled solutions, the company operates with a global footprint, aiming to provide convenient and efficient services to its clientele.

The Challenge

Legacy Systems and Rising Operational Pressures Amid Economic Downturn

In 2022, adverse macroeconomic conditions significantly impacted loan originators, leading to increased delinquencies and higher collection volumes. The client’s legacy operating model, characterized by labor-intensive processes, struggled to adapt to these challenges. Efforts to implement automation internally were hindered by a lack of expertise and disjointed execution, resulting in slow time-to-market and escalating operational costs. 

The company faced difficulties in acquiring and retaining the right talent, further exacerbating margin pressures. Seeking to drive efficiencies and gain a competitive edge, the client required a partner capable of recognizing outsourcing and transformation opportunities and swiftly implementing effective solutions.

Sutherland Solution

Comprehensive Automation and Business Process Reengineering Across Global Operations

Sutherland conducted an in-depth advisory assessment to evaluate the client’s end-to-end processes, identifying key areas for automation and optimization. Our solution encompassed: 

• Strategic Roadmap Development: Crafted a holistic transformation roadmap covering customer support, collections, finance and accounting, and legal and compliance.
  
• Global Centers of Excellence: Established Centers of Excellence across India, the Philippines, and Jamaica, standardizing operations and enhancing agent experiences through the creation of over 70 Standard Operating Procedures (SOPs).
  
• Process Standardization: Mapped and defined operational standards, implementing a global operating model with standardized processes to improve efficiency and compliance.
  
• Lean Six Sigma Methodology: Applied Lean Six Sigma principles to eliminate redundant non-value-added activities, streamlining workflows, and reducing total cost of ownership (TCO).
  
• Robility® for Hyperautomation: Deployed Sutherland’s Robility® platform in collaboration with a leading automation provider to develop bots that automated manual data analysis within the vehicle auction accounting process, enhancing inventory management and payment accounting.

This comprehensive approach enabled the client to overcome operational silos, reengineer processes, and establish a resilient, scalable operating framework.

The Outcome

Significant Cost Savings and Enhanced Operational Efficiency

Through Sutherland’s strategic partnership and implementation of intelligent automation, the client achieved a 40% reduction in total cost of ownership over three years. Operational efficiencies were markedly improved, with 100% achievement of Service Level Agreements (SLAs) and process efficiency targets. 

That’s digital outcomes delivered!

Sutherland’s scope of services expanded to manage 60% of the client’s total business volumes, up from 25%, reflecting the trust and value delivered. The transformation not only addressed immediate operational challenges but also positioned the client for sustained growth and adaptability in a dynamic economic landscape.