Flexcar Halves Risk Rates from 10% to 5% and Reduces Asset Loss to Zero
About Flexcar
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 available as an alternative to auto loans with insurance, maintenance, and roadside assistance included in straightforward pricing. Flexcar aims to simplify how people access and use cars, making mobility easier and more adaptable to individual needs and lifestyles.
Key use case:
Credit decisioning,
Fraud detection
Industry:
Automotive Financing
Region:
United States
Case study overview
from 10% to 5%
average risk rates
from 13% to 6%
subprime risk rates
0
asset losses
The Challenge: Flexcar struggled to efficiently manage risk in a complex auto leasing industry. They faced high risk rates, asset loss, and data integration challenges, and lengthy consensus-building phases delayed improvements.
The Outcome: With Oscilar, Flexcar was able to significantly reduce risk rates and enhance operational efficiency through tailored, rapidly deployable risk management solutions, reducing their lost assets to zero.
The Oscilar Impact
Dramatic Reduction in Risk Rates
The implementation of Oscilar's solutions enabled Flexcar to significantly lower their average risk rates from 10% to 5%. Their subprime risk rates went down from 13% to an impressive 6%, highlighting a major enhancement in risk handling capabilities.
Asset Loss Mitigation
The adoption of Oscilar's platform also led to a marked reduction in asset loss, with last quarter's count of unaccounted vehicles dropping to zero
Simplified Data Integration
Flexcar used Oscilar's platform to integrate multiple data points, enhancing their decision-making and risk management capabilities. This allows them to build new rule sets quickly and easily.
Increased Business Volume and Customer Retention
By reducing risk and improving their economic position, Flexcar was able to offer more competitive pricing and attract more customers. Also, reduced risk rates led to increased customer tenure.
"The collaboration with Oscilar has drastically reduced our asset misplacement issues to zero, which has been transformative for our operational efficiency. Losing an asset costs thousands of dollars each time it occurs, and with Oscilar we saw the number of misplaced assets reduced to zero per month".
Michael Zambrano
Lost assets and a non-traditional risk management framework for their industry
Prior to the partnership, Flexcar was dealing with the complexities of risk management outside the traditional banking environment. The lack of a straightforward, impactful risk management framework meant extended periods devoted to educational and consensus-building processes before any real implementation could begin.
In particular, they struggled with:
Lengthy education and consensus-building phases
Implementing effective risk management strategies required extensive education and consensus-building within the organization. These lengthy processes delayed the adoption of actionable risk management practices.
Asset misplacement and loss
Flexcar was dealing with issues related to asset misplacement and loss, which can be costly for the company. Each lost vehicle could cost thousands of dollars, impacting their bottom line.
Inefficient manual processes
Prior to partnering with Oscilar, Flexcar's risk management processes were manual and time-consuming, leading to operational inefficiencies and slower response times to emerging risks.
Lack of data integration
Flexcar needed a way to integrate multiple data points to enhance their decision-making and risk management capabilities. The lack of data integration made it challenging to build effective rule sets and respond quickly to changing risk factors.
These challenges hindered Flexcar's ability to manage risk effectively, make data-driven decisions, and optimize their operations. Addressing these issues was crucial in order to remain competitive and profitable in the auto leasing industry.
A tailored risk solution that allowed for rapid risk model development and deployment
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 not only helped in significantly reducing risk rates but also enhanced Flexcar’s operational efficiency by shortening the lengthy processes of risk education and implementation. Additionally, the platform integrated multiple data points, which improved Flexcar’s ability to make data-driven decisions and respond more agilely to emerging risks.
Key components of the solution included:
Flexibility and customization
Oscilar provided Flexcar with a highly flexible and customizable solution. Rather than just providing a limited set of "out-of-the-box" options, the Oscilar team worked closely with Flexcar to innovate and build capabilities tailored to Flexcar's specific needs and existing systems.
Comprehensive orchestration
Flexcar was able to orchestrate and integrate a wide range of data sources and functionalities, including 20+ integrations with third-party APIs (Equifax, Method, SentiLink, etc.), Flexcar's own machine learning models, and database integrations with Snowflake and Redshift. This allowed Flexcar to consolidate data and decisioning in one place.
Rapid testing and iteration
The platform provided powerful testing capabilities that allowed Flexcar to quickly test and refine their risk models and workflows. Features like A/B testing, shadow testing, QA testing of sample payloads, and a sandbox environment enabled Flexcar to make incremental improvements to their workflows in as little as a few hours to 1 day.
Modular architecture
Oscilar's solution allowed Flexcar to modularize their workflows using features like "child workflows". This enabled them to manage smaller pieces of logic independently and reuse them across workflows, rather than having one monolithic workflow.
Close partnership and support
Together we developed a close working relationship, with Oscilar providing ongoing, highly responsive support to the Flexcar team. Flexcar’s team has been forthcoming with ideas and needs, which we’ve been able to implement quickly
Together, these features of Oscilar's platform not only addressed Flexcar's immediate needs in risk reduction and operational agility but also laid the foundation for ongoing improvements and innovations in their risk management practices. This solution enabled Flexcar to maintain a competitive edge by managing risks more effectively and responding more rapidly to changes in the marketplace.
The outcome
The adoption of Oscilar’s tailored risk management platform significantly enhanced Flexcar's operations, resulting in substantial improvements across various aspects of their business. There was a dramatic decrease in average risk rates, from 10% to 5%. Subprime risk rates went down from 13%, which was near the industry average, to an impressive 6%, illustrating the effectiveness of Oscilar’s AI Risk Decisioning Platform. With Oscilar, Flexcar was able to reduce their vehicle misplacement cases down to zero, a significant milestone that impacted their ROI, as each stolen vehicle costs thousands of dollars.
Operational efficiency 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. This allowed Flexcar to respond swiftly to emerging challenges, thereby optimizing their operational agility.
The platform also facilitated advanced data integration, enabling Flexcar to make informed, data-driven decisions that further fine-tuned their risk management processes. Another notable outcome was the significant reduction in asset loss, with the count of unaccounted vehicles dropping to zero, effectively mitigating operational risks and financial losses.
Finally, Oscilar's solution provided scalable risk management capabilities that adapted as Flexcar grew, ensuring that their risk management efforts evolved in line with their expanding operational needs.
Flexcar's collaboration with Oscilar 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.
from 10% to 5%
average risk rates
from 13% to 6%
subprime risk rates
0
asset losses
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