Republished from AAMVA's MOVE Magazine
Department of Motor Vehicles (DMVs) across the country are facing a critical challenge—the need for speed in service delivery. Businesses associated with title and registration, such as car dealers, lenders, and insurance carriers have shifting needs and find the current 40-to-60-day delays unacceptable for operations.
The pressure on DMVs to innovate is mounting, and some state governments are turning to the private sector for solutions.
DMVs are increasingly partnering with the private sector, which can operate at the speed modern business demands. They are recognizing that, rather than developing software in-house, partnering with private companies that understand the evolving needs of jurisdictions allows for more responsive systems.
Understanding Industry Needs
For decades car dealers have sold in a 5-to-10-mile radius around their dealerships, but in the last five years, that radius shifted to approximately 900 miles in online transactions. The existing process in the DMV is to think of most of your titles transferring locally from one person to another in-state. Now you’ve got a whole world of interstate title registration and lien movements that current DMV processes aren’t well equipped for handling because what used to be an exception is now becoming a norm.
Similarly, total losses in the insurance industry 10 years ago were 6% of all auto claims, now they have grown to 24%. One fourth of all car accidents result in a total loss transfer request from insurance carriers which has inundated DMVs with more paperwork than ever before. The current 60-day average for processing titles in total loss transactions has severe consequences. Cars linger in salvage yards, leaking fluids and posing environmental hazards.
Highlighting a more intricate challenge, lenders are faced with this predicament: they will extend loans to consumers to buy a car, but in some states, in fact, in many states, it takes upwards of eight or nine weeks for that lender to have a perfected interest on that title that indicates that they gave that loan. This extended timeline proves costly for lenders, as it necessitates them to operate without a perfected interest, inevitably leading to elevated interest rates.
Speed of Service
Enter CHAMP Titles. In a bid to modernize and streamline processes, CHAMP first builds advanced systems of record for DMVs, leveraging contemporary technologies such as cloud-based computing and blockchain. This move is aimed at enhancing the storage, management, and handling of data related to title registration and lien processes, which are currently handled on paper or outdated mainframes. CHAMP’s solutions improve the way DMVs store, manage, and handle the large amounts of data involved in title registration and lien processes.
The second facet of CHAMP’s solution involves transforming paper titles into digital formats. By introducing a new system of record and enhancing services, CHAMP enables the conversion of paper titles into digital ones, eliminating the need for physical documents.
Lastly, CHAMP introduces AI capabilities to boost the efficiency of DMV clerks in handling the increased volume of titles, registrations, and liens. This technological integration is particularly appealing for DMVs seeking optimal efficiency. By utilizing CHAMP’s AI, clerks can enhance their efficiency in processing the influx of additional titles, registrations, and liens.
While the ideal scenario is to replace outdated systems entirely, CHAMP’s modular technology allows for a more gradual approach. This modularity enables CHAMP to add value to the current system of record, offering DMVs the flexibility to address specific challenges without a complete overhaul.
Ultimately, CHAMP aims to deliver cost-effective solutions with a faster time-to-market, addressing subsets of challenges faced by dealers, lenders, insurance carriers, and fleet operators. This approach allows DMVs to incrementally improve their processes and enhance efficiency. As the automotive industry continues to transform, CHAMP stands poised to catalyze DMV innovation, offering practical and cost-effective solutions that pave the way for a faster, more responsive future.
