Digital tools are taking on new roles, such as customer targeting and market-trend identification. At the same time, regulations and compliance standards are constantly being tightened.
These challenges are elevating the role of automakers’ finance departments. Long relegated to the position of assisting in the financing of customer purchases and managing sales units, the compliance requirements of the role dictated that the finance function develop advanced risk-management systems and methods. These tools and processes included, among other things, early warning frameworks, customer risk assessments, and financial planning. And now, given stricter financial regulations, finance departments are upgrading and improving their risk management techniques.
Success rates of fraud identification algorithms
Classic vs. innovative indicators
Source: Oliver Wyman