Case Study: Global Auto Company achieves up to $12M annual loss reduction and higher approval rates with FICO Optimization Solution for Alternative Deal Structure

Auto Company Drives Profitability Through Real-Time Alternative Deal Structuring

A captive auto lender for a top global automaker faced a slow, manual deal-structuring process that left too many prospective buyers rejected, produced inconsistent decisions across dealerships, increased credit exceptions and risk, and limited profitability. Credit analysts were spending excessive time creating deals case-by-case, reducing approval rates and dealer/customer satisfaction.

The company implemented the FICO Optimization Solution for Alternative Deal Structure so risk managers can update policies in real time and the system can generate up to 10 profitable, policy-compliant deal options (from which analysts pick the best three). The change sped negotiations, raised approval rates, improved loan-to-value outcomes, and delivered measurable gains—reducing annual losses by up to $12M, cutting labor costs by up to $3M (saving 2–3 minutes per application, about 150 hours/day), and producing more consistent, lower-risk decisions.