Just when you think things are looking up, news from Wall Street brings you back down to reality—we are living in a still reeling economy. Consumers across the country are holding on to the little money they have and are saying goodbye to big ticket items. Like any industry, car dealerships are dealing with the harsh reality of today’s cash-stricken world and, accordingly, are implementing technology to protect their most precious assets… their vehicles.
To help mitigate risks and ensure stable profits in a down-turn, lenders are implementing GPS Collateral Management Systems (CMS). Typically, CMS solutions that implement GPS technology allow users to track the location and movement of their vehicles, but not all CMS solutions are created equal. A comprehensive CMS solution should help users reduce costs, increase efficiency and mitigate risks.
Let’s take a look at the best practices lenders should follow when searching for the right CMS solution.
- Real-Time Tracking: A comprehensive CMS should provide real-time GPS positioning. This will ensure that a vehicle can be readily located in its most current location when being searched for.
- Ease of Use: The right platform should also provide you with actionable business intelligence through easy-to-use Web-based interfaces and dashboards. What’s the point of implementing a collateral management system that gathers useless data?
- Scalability: If your customer-base grows, be sure that your platform can grow with it. Your CMS solution should accommodate the growing number of vehicles you plan to protect.
- Rigorous Protection: Make sure your system protects your customer’s sensitive data. Federal and state security regulations are constantly changing, so be sure that your CMS provider has the appropriate standards in place.
- Cloud-Based Simplicity: Installing and managing your own hardware and software can be costly. Instead, choose a cloud-based hosted CMS that you can access through the Web.
Stay tuned to part two in this series in which we will continue to discuss additional best practices for choosing the right collateral management system.