Flexcar offers a flexible alternative to traditional car ownership, providing users with the freedom to drive without the long-term commitment and costs associated with owning a vehicle.
Their service is ideal for those who need a car for varying periods, whether it's for a few days, weeks, or longer, offering a convenient solution with straightforward pricing, insurance, and maintenance included.
The challenges
Confirming the identities of these users is challenging. The auto leasing industry is complex and identity fraudsters have become quite sophisticated. Flexcar was facing significant asset losses and high risk rates. Onboarding high-risk users was also leading to a high number of repossessions, which are quite expensive.
Prior to partnering with Oscilar and SentiLink, Flexcar's risk management processes were also manual and time-consuming, leading to operational inefficiencies and slower response times to emerging risks.
It became clear to Flexcar that their approach to risk management was costing money through inefficiencies, asset losses, and costly repossessions.
The solution: Oscilar and SentiLink reduce risk
Oscilar provided Flexcar with a tailored risk management platform that addressed their specific challenges in handling complex risk scenarios outside of traditional banking frameworks. The solution facilitated rapid deployment, enabling quick transitions from theoretical risk assessment to actionable strategies.
This platform included access to SentiLink's real-time fraud scores and other services, which had proved valuable during the testing phase. For example, in a blind data test, 62% of the user applications SentiLink flagged as high-risk led to delinquent accounts. 74% failed to make their first payment. 33% of them led to repossessions. By flagging just 2.6% of applications, SentiLink was able to capture 13% of Flexcar's repossessions.
This helped in significantly reducing Flexcar's risk rates and the costs associated with them. But Oscilar and SentiLink also enhanced Flexcar’s operational efficiency by shortening the lengthy processes of risk education and implementation. Oscilar's platform is modular and allows for rapid testing and iteration of new data points and solutions. SentiLink's API-based scores allow Flexcar to assess an application's identity fraud risk in real time, and it also gives partners the ability to escalate tricky manual-review cases to its Fraud Intelligence Team, removing some of the burden of manual review from Flexcar.
The outcome
The adoption of Oscilar’s tailored risk management platform and SentiLink's fraud scores and services significantly enhanced Flexcar's operations, resulting in substantial improvements across various aspects of their business.
There was a dramatic decrease in subprime risk rates, with rates dropping to 6% from an industry average of 13%, illustrating the effectiveness of Oscilar’s AI Risk Decisioning Platform. With Oscilar, Flexcar was able to reduce their vehicle misplacement cases down to zero, and SentiLink's scores allowed it to meaningfully reduce the rate at which it had to repossess vehicles by flagging high-risk users at the point of application.
Operational efficiency also saw a major boost as the integration of the platform cut down the time from risk education to implementation from several months to mere weeks. Access to SentiLink's Fraud Intelligence Team also meant that Flexcar could lean on SentiLink's expertise for manual case reviews, with a typical turnaround inside of 24 business hours. This allowed Flexcar to respond swiftly to emerging challenges, thereby optimizing their operational agility.
Flexcar's collaboration with Oscilar and SentiLink has revolutionized their approach to risk management, establishing a new benchmark in the auto leasing industry for integrating technology into operational processes. Looking forward, Flexcar is excited to expand this partnership, exploring further innovative solutions that Oscilar can bring to other aspects of their business.
