TurboPass Corporation

Verification Process for Car Buyers

Company Information

Website:

https://www.nostips.com/

Sector:

Automotive Services

Location:

Austin, TX

In 2018, 58 million cars were bought in the U.S.

TurboPass is targeting this market by creating a paperless, instant income verification process.

Its software-as-a-service helps car dealers verify and receive proof of income from customers. This speeds up the car buying process, enabling consumers to receive their car faster, and helping dealers sell more vehicles.

When buying a car, consumers generally need to submit proof of income. This is typically in the form of paper-based pay stubs and bank statements.

The problem is, it takes a long time for car dealers to receive this proof. Furthermore, fraudulent documents are becoming a problem. Last year, for example, automotive finance fraud in the U.S. reached a record $6 billion.

With more than 40 years of combined experience in the auto finance industry, co-founders Michael and Kenneth Jarman experienced these problems first-hand.

They created TurboPass as a faster, more secure way to gather sensitive verification documents.

Here’s how the process works:

First, a dealer invites a buyer to use TurboPass by sending them an email or text message.

Next, the buyer accesses the portal, and links their financial accounts so the creditor will be able to verify their income. Buyers can link up to five different accounts in order to submit all of the required information.

Once the buyer’s accounts are linked to the portal, the dealer will receive a PDF of the buyer’s report, which he will share with the creditor.

Finally, the creditor can issue the approval or denial, and the seller can complete the transaction.

It should be noted that TurboPass’ software is not used as predictive technology — in other words, it doesn’t assess whether a buyer is more or less likely to repay an auto loan. Rather, it streamlines the verification process for buyers and sellers.

TurboPass earns revenue by charging dealers a subscription to its software.

The company offers multiple paid subscriptions, based on how many reports a dealership requests each month.

As an example, Level 3 enables a dealer to pull 35 reports in a month, and costs $297 per month.

TurboPass has two patents pending, including one for its "User-authorized distribution of trusted source data.”

To date, the company’s users include Westlake Financial, the No. 1 Independent Auto Lender in the U.S. that oversees more than 14,000 dealerships. Westlake has been referring dealerships to TurboPass to help streamline the verification process, and reported an average validation time reduction from 14 days to less than 1 day.

TurboPass is currently in discussions with two other top auto lenders for pilot programs. Upon successful completion of these pilots, the company believes it will be able to add 18,000 franchise dealers and more than 50,000 independent dealerships in the U.S.

In mid-2019, TurboPass was chosen as a finalist in the Auto Finance News “DemoVation” contest.

CEO Michael Jarman participated in the DEMO Pitch Competition in San Diego, whose audience included some of the largest auto lenders in the industry, such as Ford Credit, Ally Financial, CapitalOne Auto Finance, Santander/Chrysler Capital, and Wells Fargo.

Michael was also asked to speak at the National Auto Finance Association Conference, specifically on how modern digital validation and data-distribution technology can eliminate fraud and speed up the auto verification process.

Team Background

Kenneth Jarman - Co-Founder & COO

Like his brother, Michael, Kenneth has domain experience in the auto finance industry.

Prior to starting TurboPass, he spent 10 years as co-founder of Sierra Motors, a Texas-based auto finance company.

Before that, he held leadership positions with Group1Automotive and Mercury & Reliance Acceptance Corporation, two auto financing companies.

Michael Jarman - Co-Founder & CEO

Michael has extensive experience in the auto finance industry.

He began his career working for E.S.A. Auto Finance Company, providing auto loans to car dealers in south Florida.

From there, he spent four years as a senior sales manager with Santander bank. He then worked for Capital One Auto Finance for seven years, serving as an area sales manager.

Most recently, Michael was Vice President of Dealer Financial Services for Regions Bank, and Dealer Development Manager for California Republic Bank.

He earned a Bachelor’s degree in International Business from St. Edward’s University.

Zahid Kassem - EVP, Business Development

Zahid has a 27-year career in the finance industry.

He served as Senior Vice President of Enterprise Fraud for Santander Bank, and spent six years prior to that as Director of Fraud Risk Management with Ally Financial (NYSE: ALLY).

Earlier in his career, he was Vice President of Liability Risk Management for Bank of America (NYSE: BAC), and started as a risk control supervisor for Citi (NYSE: C).

Zahid earned a Bachelor’s degree in Criminal Justice from the University of North Texas.

Jude Samson - Chief Technical Officer

In addition to his role with TurboPass, Jude runs his own consulting business, Samson Advisory.

Before starting that, he spent 19 years with Levelfield, a company creating custom websites for small businesses.

Co-Investors

Raising
$1.07 million
Committed
$801K (7%)
Current Valuation
$4.5 million Cap / 20% Discount
Min. Investment
$100
Deal Type
Title III
(For all investors)
Offering Type
Convertible Debt
Finance History
  • $135K
    2019-09-01
    Unknown
Notable Investors
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