In a fast-moving digital world, lenders need to manage risk, fraud and marketing quickly and efficiently. To do this, they must provide their teams with the right tools to speed up their tasks and fully exploit all their working potential. 

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Alternative data solutions are a clear example of how new tools can help lenders boost their businesses. According to Mike Mondelli, former Senior Vice President of TransUnion Alternative Data Services, alternative data sources accurately score more than 90% of applicants, which traditional lenders would otherwise recognise as thin-files or credit invisibles.

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In this article, we will review the 10+ main tools that will facilitate the daily work of lenders, providing increased control of their business and increasing their profits at a lower risk.

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Credit Risk Solutions

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1. Credolab credit scoring

Credolab leverages anonymous and user-consented digital footprints to generate digital scorecards. Credolab’s credit score is our core product. Credolab calculates its credit score as a statistical measurement of an applicant’s relative credit risk profile. Similar to a credit score from a credit bureau, the higher the credolab credit score, the lower the probability of default. Credolab can also create other scorecards, including intent (or approval) scores, indicating a user’s probability of buying or applying for a product. This allows clients to cross-sell more accurately and retain the stickiness of good-performing customers. With this solution, lenders can analyse creditworthiness in real-time, maintaining regulation compliance given that credolab uses only privacy-consented and permissioned metadata collected anonymously from the financial institution client website and mobile app.

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2. LexisNexis

LexisNexis is an ID authentication and verification solution that manages the information from more than 276 million U.S. identities. Since they also use non-personally identifiable information, this tool can fight fraud and mitigate risk while remaining compliant. 

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3. GBG 

GBG’s goal is to ensure the health of the onboarding process by verifying customer identity and keeping fraudsters out without compromising the company’s compliance obligations. GBG builds a secure and fast customer onboarding experience that runs smoothly with low friction. 

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4. Moody’s Analytics

Moody’s Analytics provides lenders with the tools to measure, manage, and mitigate their loan and investment portfolios’ credit risk through their credit risk solutions. One of Moody’s Analytics’ solutions is their credit risk modelling which helps lenders to assess and manage current and future credit risk exposures across different types of assets. At the same time, it can support origination, risk management, compliance, and strategic objectives.

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5. Algoan

This company helps leaders improve their decision-making process with open banking credit scoring. Algoan’s Open Banking-based solutions credit decisions are based on factual, comprehensive, and up-to-date information. Consequently, open banking becomes more inclusive and accountable by assisting underserved populations and preventing over-indebtedness. 

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Fraud Solutions

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Crowe Global, a public accounting, consulting and technology firm, reported in its previous research that fraud costs businesses and individuals worldwide US$5.127 trillion annually. Therefore, besides credit scoring solutions, having the right tools to fight against scams is a must to prevent irreversible damage. 

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1. Credolab fraud scoring

Similar to a credit score, credolab leverages an anonymous and user-consented digital footprint to predict the probability of a device being similar to a confirmed fraudulent one. Furthermore, credolab uses the same digital footprint to check device velocity. Device velocity helps lenders flag potential fraudulent applications by analysing the rate at which users submit multiple applications with the same device within a certain time window. In other words, credolab helps identify if the same device applies to multiple loans/credit cards using different IDs, personal data, or SIM cards. Without this fraud solution, banks are left exposed to organised criminal attacks that leverage fake identities to game the system and get a loan approved without any intention to repay it. The higher the fraud score, the more likely the user will be flagged as fraudulent. Using our fraud score, clients can detect atypical behaviours based on depersonalised digital footprint data. 

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2. Signify

The company’s objective is to protect shoppers against fraud by providing true identity recognition and discovering customer payment intent. The solution identifies who is behind the transaction, blocking any fraudulent behaviours. 

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3. SEON. Fraud Fighters

Seon’s solution helps companies to discover fraud patterns and revenue opportunities through real-time data analysis. It combines digital and social media information, phone, email, IP, and device lookups, with machine learning technology. Seon adapts to the different ways businesses evaluate risk. 

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4. Sift

Sift combines technology and its global data network to avoid scams, reduce false positives and powers frictionless experiences. The Sift solution protects you from fraudulent payments, fake accounts, spam, account takeover and disputes.

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5. Kount

Kount’s AI-driven Identity Trust Platform protects every interaction across the whole customer journey. Through hands-free automation and flexible controls, businesses could make more accurate decisions and increase approval rates, reduce chargebacks, stop bot attacks, prevent account takeover, and manage disputes.

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6. TruValidate

This TransUnion solution validates consumer and device identities to prevent fraud without interfering with the user experience. In addition, this tool provides businesses insights into consumer transactions using traditional data science and machine learning.

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Marketing Solutions

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Every day customers are exposed to several offers. It is crucial to have a deep knowledge of who they are and what they are interested in. This will enable you to target these potential clients with tailored messages and products. Marketing solutions based on data and machine learning technologies can provide profitable insights, capable of increasing acquisition and retention rates and are a reliable ally for any company.

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1. Credolab marketing insights

Credolab analyses the digital footprint of a user’s device and provides granular, updated, and predictive insights to its clients in the form of features. Features contain a wealth of information and insights and are delivered via one single API, allowing clients to build personas, not segments. Some examples of these features include device brand/model info, app information (e.g. the number of gambling apps installed, existing competitor(s) apps installed), how calendar events are scheduled, contacts are saved, and many more. Using these findings, credolab helps clients better understand their own customers and improve how they target prospects who exhibit similar persona traits.

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2. Twilio Segment

Twilio’s Customer Data Platform (CDP) unifies all the customer’s touch points across all platforms and channels, providing companies with a complete understanding of their customer journey. Therefore, businesses can offer personalised and consistent real-time customer experiences.  

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3. Neustar marketing solutions

The Neustar solution helps businesses improve marketing planning and performance across the customer journey. They provide updated and enriched insights, so companies gain a deeper understanding of their customers.

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4. Zoho CRM

Zoho CRM  is customer relationship management software that helps businesses obtain more leads and engage customers at the right time with the right message. With their solution, businesses can build tailored customer experiences.

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5. Google Ads Data Hub

Google Ads Data Hub (ADH) allows businesses to access marketing data from Google, YouTube and DV360 and develop a tailored analysis according to their business objectives, respecting customer privacy. 

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Winning market share is not an easy task for lenders. There is a lot of competition, and consumers have become more selective. Clients demand not only better products and services but also better customer experiences. Besides, wrong decisions related to compliance, fraud and risk could cause irreversible damage to businesses. Therefore, choosing the right solution for a business could make the difference between success or failure.

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Interested in learning how our products can help you? Request a free demo, or drop us your questions here.

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Access data insights solutions that deliver growth - Fraud detection | Credit scoring | Marketing segmentation. Helps you say "YES" more confidently to more customers!

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