LoBue: Real World: Consumer Finance

CONSUMER FINANCE

"Those operating in the consumer finance arena - both mortgage bankers and finance companies -- face enormous competition armed with sophisticated technology and marketing resources. Price competition has caused thinner profit margins that can only be offset by improving operational efficiencies. Increasingly generic products need to be differentiated with premium service."

THE BUSINESS NEEDS
Big consumer lenders are now entering the sub prime fray with sophisticated credit scoring systems and more conservative accounting methods than the pioneers of the business utilize. This financial frontier is already littered with the wreckage of small lenders that have been severely battered by bad loans and dubious management practices. Banks and finance companies must employ new strategies to remain competitive and viable.

Mortgage bankers also face enormous challenges -- price competition causes thinner margins in an industry of generic products; the need for differentiation must be satisfied by supplying premium service; thinner margins must be offset with improved operating efficiency; and new regulations and new technology must be properly built into business processes to ensure continued success.

Perhaps the biggest new wrinkle is the advent of Internet delivery. New web sites providing mortgage and consumer finance services directly to consumers proliferate; however, actual delivery is still slow and error-prone at best.

THE LOBUE PERSPECTIVE
The successful companies in this marketplace will find ways to steadily grow their loan portfolios, while providing consistently high quality at equal or higher levels of profitability. At the same time, new ventures such as corporate alliances, mergers and acquisitions or e-commerce delivery mechanisms, should be considered, but within the context of the strategy and vision of the company.

Jumping on the bandwagon to meet the competition can be an expensive and risky proposition. One has only to view the business press to see the problems of some of the largest financial organizations in the world. Tomorrow's survivors will be those institutions that continually re-visit their strategy and carry out new initiatives that effectively move the company towards their goals.

THE SOLUTION, REAL EXPERIENCE
LoBue Associates, Inc. helpsconsumer finance and mortgage companies identify their most rewarding opportunities and ultimately develop and implement sound solutions to capitalize on these opportunities. Expert consultants come from positions within mortgage banking and other financial institutions across the globe. Starting with a review of the client's vision and objectives, LoBue assists management in designing business functions that optimize profitability, productivity and client service and product quality. Specific programs with consumer lending organizations include the following:

Implementing significant organizational change to prepare for continued growth and success.
Structuring customer-centered operating processes that improve service quality while reducing costs.
Designing distribution networks that focus on existing "best practices" of the company to improve service delivery and consistency. This includes call centers, branches, indirect and internet delivery.
Integrating technological innovation with organizational process design to achieve maximum business results.

LoBue consultants then team up with management to provide the training and insight required for a smooth transition of new responsibilities and functions within the organization.

REAL RESULTS
Since its founding in 1981, LoBue Associates, Inc. has provided numerous companies with on time, on-target, measurable and reliable results for companies operating in the consumer finance area. LoBue's methodology, services, training and execution ensure corporate vision and objectives are carried out, achieving real solutions that create real results.

RELATED SUCCESS STORIES

For more information, please contact Carl LoBue .