New application leverages machine learning and robust proprietary data to enable a distinct value proposition and superior outcome for the consumer
DALLAS, April 05, 2023 (GLOBE NEWSWIRE) — Tricolor, the nation’s largest used vehicle retailer to the Hispanic market, today announced that it has secured U.S. Patent No. 11,574,362 for its artificial intelligence (AI) interactive tool called Automás. This new tool leverages data across Tricolor’s entire integrated platform to give historically marginalized consumers the power of self-selection when choosing and financing a high-quality, reliable vehicle from Tricolor.
“From the beginning, we’ve resolved to provide financially underserved customers, a population often subject to extremely limited options and predatory pricing, with an unprecedented premium brand experience that results in both physical and financial mobility,” said Tricolor CEO Daniel Chu. “Developed using 16 years of impactful results and more than 25 million non-traditional customer attributes, this breakthrough AI innovation powers an interactive tool that maximizes customer success, expands financial inclusion and sets customers on a path to a better future.”
Transformative Consumer Outcomes with AI
While some global technology leaders and others have vocalized concerns about the emergence of recent AI-driven technologies like chatbots, Tricolor’s Automás reinforces the power of AI for positive impact.
Historically, financially underserved Hispanic customers have severely limited options in terms of which vehicles they can purchase. With little or no credit history, financing for any major purchase is also generally restricted to predatory terms.
For the first time, Tricolor’s Automás application gives this consumer the power of self-selection, utilizing machine learning to generate specific offers on both the vehicle model and the financing terms. By leveraging information gained in the application process and connecting precise profiles to historical loan performance and proprietary data points, the interactive tool empowers the consumer to customize their own financing terms, such as down payment and payment amount, within the parameters of the system-generated offer. For example, if a customer uses Automás to incrementally lower the interest rate by increasing the down payment, the interactive tool helps them understand the impact of increasing the down payment above the minimum amount in order to achieve overall savings.
As opposed to conventional vehicle purchases in the United States, which require separate transactions with a vehicle dealer and a lender, Tricolor’s integrated model has a unique advantage of “end-to-end” visibility across the entire transaction because it both sells and finances the motor vehicle. This allows the company to acquire proprietary data insights across the entire customer experience and illuminates behavioral insights, such as which consumer attributes closely correlate to loan performance.
Tricolor uses AI to understand the nuances of each applicant and optimize the transaction terms for achieving positive loan performance. Ultimately, this aligns the customer’s goals with Tricolor’s business objectives.
“We have conviction that the upside of fintech lies in its potential to improve lives,” continued Chu. “At a time of growing concern about the impact of inflation on consumers’ budgets and rising subprime delinquencies, this is a compelling use of AI for a positive outcome, empowering consumers on a path to more affordable, mainstream credit and a better future.”
Tricolor has already achieved prominence within the fintech industry for its use of technology to make high-quality, reliable used autos affordable for underserved Hispanics left behind by mainstream financial providers. To date, Tricolor, a U.S. Department of the Treasury certified Community Development Financial Institution (CDFI), has disbursed over $2 billion in affordable auto loans as part of its mission to empower underserved Hispanics and provide them a path to a better future through both physical mobility and upward financial mobility.
Tricolor has been routinely recognized for its important work supporting consumers, including being named one of Inc. Magazine’s Best in Business for 2022 and the winner of the Excellence in Financial Inclusion Award at the 2022 LendIt Fintech Industry Awards. Tricolor also issued the first rated social bond in all of consumer ABS last year.
Tricolor is a U.S. Department of the Treasury certified Community Development Financial Institution (CDFI) and a mission-driven company that leverages its direct-to-consumer, A.I.-powered platform to provide transportation and upward financial mobility solutions for underserved Hispanics in the United States. It utilizes advanced data analytics and technology to advance financial inclusion to a highly underserved market and offer responsible, affordable, credit-building auto loans to individuals with no or limited credit history.
Headquartered in Dallas, Texas, Tricolor and its affiliate Ganas Auto Group operate over 50 retail hubs across 20 markets in Texas, California, Nevada, Arizona, and New Mexico with a shared services center in Guadalajara, Mexico. On a combined basis, Tricolor and Ganas have served over 100,000 customers and disbursed over $2 billion in affordable auto loans using their proprietary model to segment risk.