Online lenders, already under pressure to stay on top of a highly competitive market, now face new regulations that will increase the cost of business by requiring additional processes and complicating compliance. At the same time, consumer expectations are high for experiences and applications that are smooth and frictionless. Top that with the growing consumer preference for mobile, and many online lenders are wondering how to bring it all together.
At the heart of the matter is the need for a new identification layer of digital-specific identity attributes.
Thoughtfully employing modern digital identity elements can lower barriers to validating a customer’s identity, while ensuring compliance. Forward-thinking lenders are using contemporary identification solutions that offer real-time access to mobile network carrier data to create unique digital identities so that the identity of the applicant can be verified with more intelligence.
How do they do it? Behind the scenes, the solution checks and reports on mobile attributes and carrier service change events such as account status, account type, or how long the account has been active, to verify the applicant in addition to other identity aspects. These attributes can also be utilized to further assess risk on identities. Leveraging digital attributes in an integrated, frictionless and multi-layered way facilitates success in three key areas: Customer Acquisition, Customer Experience and Identity Verification. In the new regulatory and competitive landscape sustainable competitive advantage is achieved when successfully executing on all three hitting the online lending servicing sweet spot.
Evaluating digital identity attributes such an IP address, email, and mobile phone and related service characteristics, along with traditional PII, will allow you to spot problems such as synthetic identities and invalid inputs, and flagging other issues with an identity.
Most lenders are feeling the competitive pressure to meet customer demand for faster underwriting, origination and servicing options. Verifying digital identity attributes behind the scenes, combined with traditional PII, reduces the need for manual intervention during the Know Your Customer process.
Risk and Loss Prevention
Balancing faster service against the need to keep risks low means finding the right keys to predicting and preventing identity fraud. By collecting and assessing digital identity attributes, particularly mobile, email and IP addresses, you’ll have the power to better evaluate the identity of your consumer.
A best-in-breed, integrated multi-layer solution incorporating real time mobile carrier data and intelligence can go a long way toward a more efficient, secure and compliant lending process that will outsmart the competition and delight customers. For more information about digital identity verification please visit www.idology.com.
This article originally appeared on LEND360.com.