Lenders need automated tools to manage third party risk
Our founder spent 15 years as a regulatory attorney for leading financial institutions and fintech companies. At one point he led 100 lawyers helping major banks through the Mortgage Crisis.
Each of his clients spent billions of dollars rebuilding its compliance program.
As he witnessed first-hand, a major contributor to the Crisis was the lack of visibility lenders had on third parties they rely on to get customers. That includes mortgage originators but also auto dealers and wealth managers.
Small companies struggle with complex, high-risk consumer protection laws. Regulators hold lenders responsible for their partners' compliance. Today, lenders have no way to monitor the compliance of thousands of small business partners with complex and changing laws.
And it's not just regulatory risk: major companies have suffered grave reputational harm due to data security breaches that used third party information and channels to breach them.
The housing market crisis in 2008 became a compliance crisis, and we've begun to see the same signals in the auto loan market.
LexAlign solved this problem by creating automated software tools that lenders (and other financial institutions) can use to monitor their third parties, mitigate their risk exposure, and demonstrate compliance. We're starting with auto loans.
In today's environment, every auto lender needs to show proactive monitoring of between two and eighteen thousand auto dealers.