Open Lending Corp

Open Lending Corporation is a leading provider of lending enablement and risk analytics for credit unions, regional banks, finance companies, and automaker captive finance companies. The company's primary offering is the Lenders Protection Platform (LPP), a cloud-based system that helps automotive lenders provide consumer loans to underserved near-prime and non-prime borrowers. LPP utilizes proprietary data and real-time underwriting of automotive loan default insurance coverage from insurers. Since its founding in 2000, Open Lending has facilitated over one million automotive loans through LPP, totaling over $27.9 billion in originations. The company has accumulated approximately 25 years of proprietary data and developed over two million unique risk profiles. Currently, Open Lending serves 450 active lenders. The LPP platform supports loans for near-prime and non-prime borrowers by connecting automotive lenders with insurance partners to underwrite default insurance. It employs risk-based pricing models that analyze credit risk using data-driven analysis. These proprietary risk models project loan performance, including expected losses and prepayments, to determine an optimal contract interest rate. LPP recommends a customized, all-inclusive interest rate for each automotive lender, considering factors like cost of capital, loan servicing and acquisition costs, expected recovery rates, and target return on assets. The platform's risk models use a proprietary score, combining credit bureau data and Fair Credit Reporting Act (FCRA)-compliant alternative consumer data, to assess risk and determine appropriate insurance premiums. LPP's technology is designed for speed and scalability in providing interest rate decisions to automotive lenders.