"Credit washing" is a type of first party fraud that involves an individual (or a credit repair organization on their behalf) falsely claiming to be a victim of identity theft in order to have bad tradelines removed from their credit report. This can improve the person's credit score and lead to extensions of credit and loans to people who otherwise may not qualify. In this paper, we present an analysis of 9,000,000 consumers and their credit reports that illustrates the negative consequences credit washing has on lenders and the credit reporting system.
Transaction fraud is complex, ranging from friendly fraud to merchant collusion. E-commerce sales have exploded in the past two years accompanied by increased fraud. Nilson predicts credit card fraud losses to reach $36.1 billion by 2023, and financial institutions are looking for more accurate and effective solutions. Today’s market-ready AI is revolutionizing fraud detection. While acquirers are embracing AI to prevent transaction fraud there’s still room for improvement. Models trained on robust global data sets prove to be more effective–increasing fraud detection 2-3x and approvals by as much as 7.4% above existing defenses. Merchant monitoring models are enabling fraud analysts to significantly reduce manual reviews and focus their investigation on the most risky cases.
With the pandemic driving hyper-digital adoption and consumers choosing to stay online, interrogating identities at account opening is more crucial than ever. Credit abuse, synthetic ID fraud and first-party fraud rates are increasing rapidly and have become a larger and larger drain on company profits. Unlike third-party fraud types, these identities often carry accurate information and seemingly legitimate intentions, but as financial institutions tighten up their onboarding policies, finding ill-intentioned consumers and synthetic identities at account opening has never been more important.
Current economic conditions, with persistently high inflation and rising interest rates, introduce uncertainty for consumers as well as the Banks and FinTechs that serve them. As economic stresses mount, hidden risks may increase within lenders' portfolios. At the same time, opportunities for profitable growth can be harder to detect.
New account fraud continues to be a highly lucrative avenue for fraudsters with an estimated 109% increase in losses last year. Criminals often look beyond traditional financial institutions to commit fraud. Fintechs—such as buy now, pay later (BNPL) providers—and telcos are being increasingly targeted in NAF schemes.
The business of lending money is changing – quickly. Modern technology, backed by expanding data and the soaring adoption of advanced analytics like AI/ML, is changing the way the industry determines who receives credit. According to IDC, tech spending on AI systems is expected to increase to $27.7 billion in 2025 (from $11.7 billion in 2021). Check out IDC’s recent Technology Spotlight, focused on the way technology advancements and new data sources, including alternative data, are pushing the boundaries of borrowing.
Per CFPB, 45 million American adults or nearly 1 out of 5 are “credit invisible” or have “thin credit”. These may include college students, gig economy workers, creator economy, married women, immigrants, etc. For many decades, only banks or credit unions have offered credit builders. Recently, there’s a growing demand of non-traditional players seeing these value propositions.
Over the past year, Shur, Equifax, and VantageScore combined forces to analyze and study the experience of 900K student loan borrowers since 2010 — and the effects of the two-year repayment pause and accommodations on America’s 43.4 million borrowers. Our report is an overview of the current economic landscape before and during the current repayment accommodations — which began in early 2020 — examining the short and long-term implications on each generation — from Gen Z to Boomers — to determine how they are affected by student loans in this economy.
In the era of ACH and paper checks, the two-week pay cycle made sense, but today’s workers need access to funds that match our subscription lifestyle—an avalanche of due dates that correspond to signups, not payday. Unfortunately, very few employers offer hourly or daily payouts even though the technology currently exists to make this possible.
62% of consumers say they’d abandon trying to log into an account after just 3 failed password attempts. 34% say they’d switch providers completely if they’re unable to log into their account easily.
Automated valuation models (AVMs) are effective property valuation tools. But they’re kind of like magic – enter an address, and an estimated value appears. For consumers, that simplicity is perfect. But for financial institutions that use AVMs for lending decisions, quality control, or other situations that carry risk, the mechanics behind that simplicity must be well understood. This White Paper will help readers understand more about AVMs, what makes a good AVM, and how to choose an AVM they can trust for their specific needs.
Lenders today must be in-tune with the ever-changing and evolving landscape of the consumer lending environment. Consumers want fast-paced transactions and a fair chance throughout a low-friction lending approval process, which may require lenders to go beyond the traditional credit score. Combining alternative data sets to capture a more comprehensive financial view of loan applicants can help borrowers prove their creditworthiness and allow lenders to say "yes" to more loan applicants. Four significant trends are reshaping the consumer lending environment that lenders should note to remain profitable and relevant in today's dynamic environment. This ebook discusses these four trends and how financial services providers can leverage income and employment data in their digital experiences to remain nimble during evolving times.
LendIt and Amount recently collaborated on a market survey to understand the limitations that keep banks, fintechs, and other financial institutions from adopting digital products, improving customer relationships, and activating new revenue sources. Within the report, important observations on partnership, misguided risk concern, and consumer credit product activity surfaced. Surrounding each of these, we reveal paths for outperformance – from outlining the keys of profitable partnership to exploring ways to leverage existing capabilities to launch digital products.
2021 was marked by challenges to the global economy, but they were met with resilience. In the U.S., the GDP grew by 10% to nearly $23 trillion, and unemployment dropped to 3.9%. We showed that even in uncertain times, we can prosper through technological innovation. LendIt and Brighterion collaborated on our second annual survey sent to financial institutions and lenders to understand how they are investing in technology. Specifically, we wanted to understand how organizations are thinking about applying artificial intelligence (AI) to credit risk considering the changing economic landscape, and their perspectives on the biggest opportunity for better credit risk management.
Traditional credit underwriting practices have unintentionally excluded 60 million consumers from credit and financial services. These consumers are Credit Excluded not because they're high risk but because the current system doesn't assess their potential risk properly. This problem is what Nova Credit, a fintech unlocking opportunities for those historically excluded from the credit system and companies looking to serve them, addresses in their latest whitepaper, "The Case for Cash." In this whitepaper, Nova Credit highlights the opportunity for lenders to improve their underwriting models and provides an evaluation of recent innovations in underwriting analytics to illustrate how cash flow data has the consumer reach, risk predictiveness, and ease of integration required to lend more inclusively.
Lenders today are building increasingly complex financial data stacks. They’ve streamlined the way they access their customers’ financial information with IBV and data sharing. However, lenders of all sizes still struggle to turn the data they collect into meaningful, actionable information. Their current data stacks simply don’t allow them to verify their customers’ income, monitor transactions in real time, or detect important life events at scale. Discover how Financeit, Mitsubishi HC Capital Canada, and Spring Financial used Flinks to upgrade their data stacks and improve their verification processes.
97% of customers demand smooth, easy banking experiences - a tremendous growth opportunity in using excellent CX to stand out in a saturated marketplace. But how? Fast-track legitimate customers with a 10-second onboarding.
Study recent ‘unicorns’ like Brex, Paxos, and Chime and a critical observation surfaces: These companies even innovate in internal functions, including risk management. To explore this, LendIt and ComplyAdvantage recently collaborated on a market survey to assess fintech risk program maturity and to understand the risk process profiles of top performers. Research and insights in this report will help fintechs understand how risk management and measurement maturity relate to business growth. We also highlight paths to outperformance, including exploring technology, key processes, and ideas to shift legacy mindsets.
A just-released TransUnion study analyzes the characteristics, preferences and borrowing behavior of more than 6 million consumers who applied for a POS loan, revealing key insights that could help lenders refine their acquisition strategies.
Open banking presents new capabilities for business lenders. One of the most notable: Secure, immediate access to financial insights using automation. As data availability and technology advances, bank and non-bank lenders must improve how they assess credit worthiness. Earlier this year, LendIt and ForwardAI collaborated on a market survey to assess how lenders use business and financial data, apply technology to predict borrower outcomes, and drive credit decisioning.
Fintech is experiencing an explosion of growth as it shakes up the banking business. But what steps should fintech institutions take to keep growth levels high, while keeping their company and customers safe? Read the guide to learn more.
Have you ever wondered: “We have all this data, how do we interpret it”? It might be time to update your financial data tech stack. The latest developments in data enrichment show how financial service providers can avoid processing data themselves, and instead work with actionable insights that power decisioning models in underwriting, user segmentation and more.
KYC is a critical step in customer onboarding for companies in regulated industries but these processes are often costly for businesses and cumbersome for new users. Companies also cite the complexity and number of vendors they require as an issue in complying with KYC regulations. Download the Product Guide to learn more about this one-stop-shop solution and see how a Tier 1 Bank used it to drive the following results:
The 2021 State of LatAm Fintech Report analyzes recent developments in Latin America’s booming fintech market and reveals the ‘new tangibles’ defining growth and value in Latin American banking.
Aite Group research found that fraud leaders in financial institutions cite disparate systems and ineffective solutions as barriers to fighting fraud. Without holistic data analysis and intelligence across channels, fraud can slip through the cracks. These four case studies demonstrate how DataVisor’s comprehensive fraud and risk management platform helps financial organizations detect 45% more to cut fraud losses — without adding friction to the customer experience.
As the world embraces a digital future, many banks and financial institutions still utilize physical paper for completing transactions and internal processes. In this survey of senior IT decision makers from financial institutions, banks have almost unanimously stated that paper processes have had a negative impact on their business over the last few years, including notable losses in annual revenue. This report was conducted in Q1 of 2021 to study the overall impact of paper processes, the real and perceived benefits of using digital documents, and examines the top barriers to change.
A Financial Times report highlights fintech trust gaps so significant that they may compromise the sector’s ability to ride the digital wave. Fintech stakeholders must grapple with a response: How can the industry reassure wary consumers, vigilant regulators, and discerning enterprise customers? Further, fintechs that operate in legacy financial institutions’ shadows must navigate these concerns while fending off well-established incumbents. The way past both issues is by generating trust.
The digital banking and fintech revolution has introduced new opportunities and financial products, both for consumers and fraudsters. In the face of a complex cybercrime ecosystem, fraud departments are fighting to curb fraudsters’ growing budgets and complex attacks. Stopping fraud and abuse while maintaining a seamless experience for customers is a difficult balancing act that must be maintained. In this eBook, Busting the ROI of Fintech Fraud, you’ll learn how Arkose Labs helps top financial institutions deter fraud and increase account security.
This white paper will demystify the Banking-as-a-Service industry, diving into the various benefits it offers three key sectors within the digital economy and defining the ways in which BaaS enables innovation for all.
The insights in this report are based on interviews with leading bank and fintech executives as well as markettrends research. The paper is intended for financial institutions considering how to fast-track innovation via partnership; financial technology companies seeking to extend their reach via bank partnership; and others interested in optimizing existing partnerships.
In this insights report, leaders from LendIt Fintech and DIT present findings from a series of intimate, intensive workshops between regional bank senior executives and FinTech leaders.We chose this intersection for its unique opportunity and growth potential. Moreover, DIT specialists across North America can help banks of all sizes seize UK FinTech opportunities with expert insights, key connections, and bespoke support.
Messente, a leader among global messaging solutions, commissioned an in-house team of experts to conduct thorough research into exactly how SMS is being used in the FinTech industry. This involved interviewing Messente’s existing FinTech customers, analysing SMS performance statistics and unpicking 20 years’ worth of internal knowledge and experience; the results of which are detailed in this comprehensive report.
Advancing on its path to provide a pan-European open banking platform, Salt Edge gained insightful experience along the way. Knowing inside out the specificities of all the open banking API standards and the strict RTS requirements, the company created a report on testing PSD2 account information and payment initiation APIs to share it for the benefit of the open banking community.
Consumers who are both financially and digitally savvy can only be won with the right value, delivered seamlessly. They are well versed in comparing across multiple lenders and platforms, they access the best value products and need only be loyal if their existing providers continue to offer great value. In the long term the proportion of the market that this segment represents, can only grow.
The How To Put AI In Your 2021 Business Plan Playbook, a PYMNTS and Brighterion collaboration, provides a blueprint of how financial institutions (FIs) can incorporate artificial intelligence (AI) into their consumer credit strategies. This playbook examines six key ways in which FIs can apply AI to help manage their credit portfolios, how AI can improve their operational efficiency and the steps they can take to ensure they are maximizing the return on investment from AI innovations.
Though 2020 was a grueling year, there were one or two bright spots the financial services industry can reflect on as it faces the recovery ahead. One is the opportunity we all had to learn from the pandemic’s massive shift to digital. The second is in the progress made in using new technologies to solve problems of financial fairness and inclusion that have plagued our society for generations.
With the FCC’s June 30, 2021 deadline approaching faster than we all think, STIR/SHAKEN and call blocking should be top of mind for operators of outbound call centers. To help, we’ve put together this guide to break down what STIR/SHAKEN is, how the new rules impact you, and what you can do to stay focused on compliance and achieve success in spite of these new changes.
The pandemic has transformed business lending on both sides of the Atlantic. For lenders - managing their new, vast portfolios efficiently as well as minimising defaults and fraud will be a significant challenge moving forward. Based on Codat’s in-depth knowledge and partnerships in the industry, they have compiled a report outlining seven key areas lenders must address when planning for the new lending landscape.
LendIt and Brighterion collaborated on a survey of financial institutions and lenders to understand how they are investing in technology. Specifically, we wanted to understand how organizations are thinking about applying artificial intelligence (AI) to credit risk in light of the economic shakeup, and where they see the biggest opportunity for better credit risk management.
Our new eBook, How virtual roadshows can accelerate investor outreach and drive ROI, takes a detailed look at this virtual vehicle and provides practical advice for getting on board. We offer criteria for planning avirtual roadshow, selecting the right platform, designing the presentation for optimal impact and determining if you’ll meet investor expectations.
Open banking is a highly versatile opportunity. The use of application programming interfaces (APIs) that allow third parties to access bank account information varies significantly both across countries and industries – and within them. We surveyed over 1,000 business leaders in the banking, retail, lending, investment platform, and personal finance management (PFM) software sectors across the UK and the Netherlands for their attitudes toward, and relationship with, open banking services.
Used everyday across the lending cycle of major financial institutions and banks to inform credit decisioning, first-party data is shifting the balance of credit scoring for everyone, forever. This guide explains what it is, why it matters and just how fast your business, and your customers, can start to benefit.
It's a reality that Finance Companies might face uncertainty while outsourcing. Nearshore allows the reduction of this risk for its proximity and cultural alignment. Still, it is the decision-makers' responsibility to find the right partner for their business, focusing on minimizing the risk and maximizing the benefits.
In this white paper, we look at how real-time data throughout the entire loan process is driving the rapid evolution of lending propositions; the new tools and approaches that deliver additional revenue streams and higher levels of personalisation; and we delve into the minds of 10 industry experts, who give their perspectives on the unique challenges and opportunities that lie ahead for modern lenders.
Banks and lenders have had to quickly adapt to changing regulations, work environments, and market conditions during the COVID-19 pandemic. In this whitepaper, learn how to build resilience, adapt to new regulations, and accelerate your bank's growth in changing times.
This paper will explore the process of incorporating and expanding the use of alternative data to promote growth, minimize risk, and improve operational efficiency as banks and lenders recover during and after the COVID-19 pandemic.
Financial services leaders are facing challenges on multiple fronts as they seek to help families and businesses financially, and to educate remote employees on new regulations. At the same time, banks are focused on long-term credit implications of their actions and expectations of long-term growth. Hear how industry experts and leading banks are navigating the turbulence and focusing on long-term growth by keeping their vision and core values at the center.
Financial data aggregation platforms have become an essential building block for the creation of innovative financial services. This paper, sponsored by Fiserv, leverages expert interviews to highlight the most important criteria a fintech or bank should apply when adopting a financial data integration platform.
Online and e-commerce merchants are reporting a 25% or greater lift in purchase transaction size when the consumer is able to pay in installments. It's no wonder then that fintech lending and banking startups, as well as retail banks around the world, aggressively are incorporating Point-of-Sale (POS) financing into their merchant offerings. Learn why POS financing is upending the traditional consumer purchase financial cycle and fintech at large; how each company operating in or entering the sector can build a strategy tailored to its resources; and what are trending innovations.
Latin America is home to over 1,100 fintech startups. This year, the market reached an inflection point, with investors based outside the continent injecting hundreds of millions of dollars in equity and debt and creating unicorns. This paper shares the perspective of global VC and PE firms and bank innovation funds who are evaluating market conditions, guiding startup strategies, picking winners, and forging partnerships. The research will be of significant interest to investors considering entry into the region; fintechs seeking global capital; and others following global fintech trends. Includes listings of top funds and deals. Co-authored with Finnovista.
A growing number of banks and lending innovators are discovering that machine learning, applied to debt collections, can dramatically grow recovery, reduce costs and improve customer retention. This paper explores the drivers to improve collections performance, leading-edge solutions, machine learning implementation best practices, and ROI potential. Findings are based on interviews with innovative lending institutions and solution providers.
Digital banking is one of the hottest trends in fintech and it’s been having a transformative impact in markets all around the world. This report co-authored with Fisher Venture Builder presents an overview of digital banking worldwide and the factors driving its rise in Latin America before taking a closer look at Brazil's market.
Identity theft is the fastest growing crime in the US. Globally, 1 in 60 online transactions are fraudulent. And if you don’t know who your customers are, you can’t onboard them to your platform. Though businesses are moving online, their identity verification and KYC processes haven’t. Instead, the old processes are being shoehorned into the digital age. So how can you update your onboarding for the digital age? Sponsored by Onfido.
Fintech firms are finding growth opportunities establishing a presence in emerging markets. This paper provides case studies and market analysis from the Middle East and Africa as examples of fast-growing economies open to best-in-class solutions. Sponsored by the Dubai International Financial Centre.
Alternative Credit Funds have enhanced the liquidity and sophistication of investments in Marketplace Lending Platforms. Read profiles and insights from 25 funds leveraging MPL for institutional and accredited investors.
Banks and non-bank lenders are bringing Marketplace Lending best practices under their own roofs by adopting LaaS. We profile 16 solution providers and highlight market trends and implementation considerations.
In the race to scale up, FinTechs face challenges including improving product profitability, recruiting and retaining talent, managing risk, and complying with regulations. This paper recommends how to ensure a Fintech is equipped to attract investment and scale up rapidly. By Oracle & LendIt Fintech.
The landscape for small-to-medium-sized business banking is shifting, as providers pursue strategies for hi-tech and hi-touch customer interactions. This paper uses executive interviews and analysis of analysis of bank and fintech initiatives to explain trends in SMB banking.
Open Banking is changing the competitive landscape, as technology standards enable fintech companies to offer financial services that compete with banks. This white paper addresses the drivers of Open Banking, leading players and their partners, regulations, and more.
The financial liberalization process has picked up momentum in China. This paper examines proposed liberalization measures, what they mean for foreign financial institutions, and why collaboration is the key to thriving in China.