Tricolor Secures U.S. Patent for New AI Technology Expanding Financial Inclusion for Underserved Hispanic Communities

New application leverages machine learning and robust proprietary data to enable a distinct value proposition and superior outcome for the consumer

Tricolor, the nation’s largest used vehicle retailer to the Hispanic market,announced that it has secured U.S. Patent for its artificial intelligence (AI) interactive tool called Automás. This new tool leverages data across Tricolor’s entire integrated platform to give historically marginalized consumers the power of self-selection when choosing and financing a high-quality, reliable vehicle from Tricolor.

“From the beginning, we’ve resolved to provide financially underserved customers, a population often subject to extremely limited options and predatory pricing, with an unprecedented premium brand experience that results in both physical and financial mobility,” said Tricolor CEO Daniel Chu. “Developed using 16 years of impactful results and more than 25 million non-traditional customer attributes, this breakthrough AI innovation powers an interactive tool that maximizes customer success, expands financial inclusion and sets customers on a path to a better future.”

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Transformative Consumer Outcomes with AI
While some global technology leaders and others have vocalized concerns about the emergence of recent AI-driven technologies like chatbots, Tricolor’s Automás reinforces the power of AI for positive impact.

Historically, financially underserved Hispanic customers have severely limited options in terms of which vehicles they can purchase. With little or no credit history, financing for any major purchase is also generally restricted to predatory terms.

For the first time, Tricolor’s Automás application gives this consumer the power of self-selection, utilizing machine learning to generate specific offers on both the vehicle model and the financing terms. By leveraging information gained in the application process and connecting precise profiles to historical loan performance and proprietary data points, the interactive tool empowers the consumer to customize their own financing terms, such as down payment and payment amount, within the parameters of the system-generated offer. For example, if a customer uses Automás to incrementally lower the interest rate by increasing the down payment, the interactive tool helps them understand the impact of increasing the down payment above the minimum amount in order to achieve overall savings.

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As opposed to conventional vehicle purchases in the United States, which require separate transactions with a vehicle dealer and a lender, Tricolor’s integrated model has a unique advantage of “end-to-end” visibility across the entire transaction because it both sells and finances the motor vehicle. This allows the company to acquire proprietary data insights across the entire customer experience and illuminates behavioral insights, such as which consumer attributes closely correlate to loan performance.

Tricolor uses AI to understand the nuances of each applicant and optimize the transaction terms for achieving positive loan performance. Ultimately, this aligns the customer’s goals with Tricolor’s business objectives.

“We have conviction that the upside of fintech lies in its potential to improve lives,” continued Chu. “At a time of growing concern about the impact of inflation on consumers’ budgets and rising subprime delinquencies, this is a compelling use of AI for a positive outcome, empowering consumers on a path to more affordable, mainstream credit and a better future.”

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