Monday, October 12, 2009

Manual vs Electronic

One obvious question that comes up from anyone hearing about electronic liens and titles (ELT): "What is the difference between what we're doing now and ELT?"

Our simplest answer: "No More Paper Titles".

We like this answer because it is so key. It represents three major points: reducing time spent handling paper, reducing costs related to moving paper around, and reducing fraud through improved information exchanges.

ELT is a fundamental shift: you have to understand that for a lender, the real point is having the lien filed with the state. A paper title is simply proof of lien (and proof of ownership for the owner of course). If that proof becomes a certified electronic message from the DMV, then there is no longer any need to open, read, matchup, verify, scan, file, store, retrieve, mail, or request duplicate copies of a piece of paper.

At a prospective customer's request, we recently outlined some of these differences in a flowchart. I've had the flowchart posted to our website for you analytical folks out there. Have fun!