In-Depth Insights: Explore Fintech Nexus' White Papers

Fintech Nexus’ white papers provide deep analysis on the topics impacting finance. They serve two important purposes, helping our community stay informed and helping our sponsors build brand awareness and generate business leads.

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Understanding Credit Washing

"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.

Advancing Fraud Protection with Global Network Intelligence

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.

Fraud Case Study: How Innovis was able to target high-risk accounts for a Top 10 Credit Card Issuer

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.

8 Ways to Uncover Hidden Risks and Opportunities in a Turbulent Economy

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: A Threat Down Every Avenue

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.

Innovative Technology, Expanding Data, and AI: Changing the Way We Lend

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.

A Complete Guide of Launching Your Own Credit Builder

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.

Measuring the Impact of Covid Accommodations on Borrowers

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.

Deliver a Better Borrower Experience with Paycheck-Linked Lending

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.

Go Passwordless: Reduce Fraud/ Improve CX

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.

Embracing the Next-Generation of AVM

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.

The Top 4 Trends Reshaping Consumer Lending

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.

Getting Ahead of the Digital Banking Curve

Fintech Nexus 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.

AI Perspectives

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.

Fintech Nexus 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.

The Case for Cash

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.

How Lenders Build Data-Driven Verification Processes

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.

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.

79% Faster Account Opening Leads to Better Customer Experience

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.

The Outsized Role of Compliance in Fintech Hypergrowth

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, Fintech Nexus 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.

Essential knowledge, connections, and inspiration for financial services. Explore our digital offerings today.