LENDING SHORT TERM AND INSTALMENT LENDING. 10 Reasons why Callcredit will help you make smarter decisions

Transcription

1 SHORT TERM AND INSTALMENT LENDING 10 Reasons why Callcredit will help you make smarter decisions

2 CONTENTS WE HELP DELIVER FAST, ACCURATE AND RESPONSIBLE LENDING DECISIONS 2 1. Unrivalled Data Coverage 4 2. MODA Updates 4 3. Real-Time Search Information 5 4. Income Validation And Affordability Assessment 5 5. Real-Time Fraud Checks 8 6. Technological Superiority 8 7. Smarter, More Accurate Credit Decisions 9 8. Unrivalled Expertise Match More Bank And Card Details To Individuals Optimisation Of Your Fraud Prevention Strategy 12 ALL IN UNDER 2 SECONDS! 13 TEN REASONS TO CHOOSE CALLCREDIT 14

3 WE HELP DELIVER FAST, ACCURATE & RESPONSIBLE LENDING DECISIONS As the longest serving data provider in the UK Short Term and Alternative Lending sector we can provide lenders with an unrivalled level of data coverage, as well as the benefit of our experience and expertise. The top12 online lenders use Callcredit as their primary credit reference agency FIGURE 1 EXAMPLE OF ACQUISITION WATERFALL CONFIGURATION Callcredit recognise that lenders face massive challenges on default rates, fraud, acceptance rates and cost per acquisition and we ve developed our offers accordingly. Our proposition is centred on credit data and verification products at the acquisition stage of the customer lifecycle. Callcredit have a clear understanding of the unique challenges faced by lenders and the need to constantly evolve and improve to stay ahead of the competition. We collaborated with lenders to produce our revolutionary new faster, credit reporting service MODA to address the regulatory need for more real time reporting. Our proposition combines robust, highquality, relevant data with an agile, dynamic approach to the challenges faced by lenders and the ability to deliver constant innovation. We appreciate the need for a flexible approach, especially given the complexities involved in assessing the viability of new leads, and have a range of products that can be slotted in at various stages throughout the application process. PRE-SCREEN RULES POLICY RULES CREDIT SCORING ID CHECK FRAUD CHECK VALIDATE BANK ACCOUNT VERIFY CARD AFFORDABILITY FULFILMENT CALLREPORT CALLVALIDATE AFFORDABILITY REPORT 2

4 THE VAST MAJORITY OF SHORT TERM LENDING SEARCH DATA IS ONLY AVAILABLE VIA CALLCREDIT Significantly more SHORT TERM Lending account performance data than any other provider By far the most predictive data available across SHORT TERM Lending and Instalment Lending

5 1 UNRIVALLED DATA COVERAGE Callcredit has far greater coverage of Short Term and Alternative Lending data than our competitors have. We were the first Credit Reference Agency (CRA) to have a specific Short Term Loan product category, which enables us to display Short Term Loans independently from other financial records. Furthermore, we also have more records from lenders who are diversifying by launching other products, such as term loans, lines of credit and guarantor lending. In addition, we have a far greater amount of relevant accounts on our SHARE database due to the number and type of organisations who provide financial records to Callcredit. As a full CRA serving a host of major blue-chip companies across a range of market sectors, Callcredit also have a vast array of significant financial records in our SHARE database to help assess your applicants. As well as our Short Term Lending records we have public credit records and banking and credit account performance records, plus data from telecoms, retail finance, home shopping and home credit companies that often proves highly predictive in assessing Short Term lending applications. Callcredit have more sub-prime data than the other UK CRAs, but we also have huge quantities of positive data concerning up-to-date financial records, which are also really crucial in determining the risk associated with your applicants. This combination of Short Term Lending data and more traditional lending performance information is crucial in enabling us to provide the most predictive range of data and insight available for assessing new lending requests. MODA - A NEW FASTER CREDIT REPORTING SERVICE, GIVING A SNAPSHOT OF RECENT IMPORTANT CREDIT EVENTS 2 MODA UPDATES In support of a changing lending landscape where consumers demand instant application decisions and regulators expect decisions to be made on the most up to date information available Callcredit have launched MODA. MODA will help support this by providing lenders with an up to date view of significant events on consumer credit files, on which they can base accurate and responsible lending decisions, whilst at the same time helping to address regulatory concerns. MODA reports on key changes on a consumer s credit file, including both new account openings and significant changes to existing accounts such as overdue payments, rectified and settled accounts, rollovers and credit extensions. Much of this information is unavailable elsewhere and MODA offers a complementary dataset to our existing monthly reporting database SHARE. This comprehensive view will offer a stronger, more up to date basis for accurate assessments of the credit risk and affordability associated with new lending applications and provides the fastest and most detailed credit reporting currently available. The database covers 90% of the online short term lending market giving unrivalled coverage of recent credit activity in the sector and MODA updates are only available to lenders who provide updates. The MODA data service is initially a daily update, and this represents a significant step change for the market, but we have capability to increase the frequency of updates. We believe that it is vital to allow this data to be made available to any lenders who contribute and will be widening the sectors that report data giving the benefit of a broader spectrum of updates to MODA members 4

6 3 REAL-TIME SEARCH INFORMATION SEARCH DATA IS UPDATED IN REAL-TIME AND SO PROVIDES A CRUCIAL UP-TO-THE-MINUTE VIEW OF RECENT ACTIVITY BY YOUR APPLICANTS As the UK s largest Short Term and Instalment Lenders, as well as large numbers of other providers, use Callcredit as their primary data provider for new business decisions we also have a huge advantage in the amount of Short Term Lending search data we are able to return in our credit reports. Search data is updated in real-time and so provides a crucial up-to-the-minute view of recent activity by your applicants. Search data is only shared with a single CRA and so the vast majority of Short Term Lending search data is only available via Callcredit. 4 INCOME VALIDATION AND AFFORDABILITY ASSESSMENT Callcredit provide a market-leading service to verify your applicant s income is as stated at the point of application, alongside our credit and verification checks. VALIDATE INCOME AND ASSESS AFFORDABILITY ON NEW BUSINESS REQUESTS CREDIT TURNOVER FROM 97% OF ELIGIBLE CURRENT ACCOUNTS We utilise our vastly superior coverage of credit turnover values (supplemented with application salaries) to provide an Affordability Report to complement your risk assessment processes. The highlight feature is a traffic light system for validating income. As well as providing assurance that your applicant can repay the loan it also helps to streamline your application process by reducing the need for manual employment and income validation checks. The Affordability Report service helps demonstrate a commitment to delivering best practice responsible lending by ensuring that applicants are able to afford the loans they are taking out. As well as income validation we also provide our exclusive Affordability Score and a range of indicators and metrics that highlight and provide more information on the most indebted individuals. These include the Income Confidence Factor which provides details of the source of our income derivation, including whether there has been a recent drop-off in their current account credit turnover. As it s available as a stand-alone product our income and affordability checks can be used independently from our other services as part of an intelligent and dynamic approach to validating new business. For example, the applicant s affordability could be checked as part of the initial decision as to whether to buy a lead in scenarios where this leads to a more cost effective and efficient approach. 5

7 USE AS AN UP-FRONT AFFORDABILITY CHECK WHEN VERIFYING NEW LEADS OR AS PART OF A FULL NEW LENDING ASSESSMENT LENDING

8 7 BETTER MATCHING, FASTER RESPONSE TIMES AND GREATER SYSTEM AVAILABILITY

9 REAL-TIME VELOCITY CHECKS CONFIRM IF ANY OF THE APPLICANT S DETAILS OR THE BANKING OR PAYMENT DETAILS USED HAVE BEEN USED IN OTHER RECENT APPLICATIONS 5 REAL-TIME FRAUD CHECKS As well as the most predictive range of data sources available for risk assessment we have an array of real-time checks to help provide you with additional assurance. The focus of our real-time checks is helping identify fraud, covering both individual applicants making high numbers of transactions within a short period and more organised third party fraudulent activity. REAL TIME CHECKS Our search data provides you with up-to-date details of recent Short Term Loan applications made with Callcredit, covering the vast majority of the Short Term and alternative lending market Velocity Checks warns of instances of repeat application variables to highlight fraud risk. Consistency in usage provides more reassurance that the application is genuine. Inconsistencies such as the card having been used at another address or by a different individual provide further valuable fraud warnings Instant checks on the payment card. Card Live provides AVS and CV2 checks to confirm that the card is live on the banking network, capable of making a payment, not lost or stolen and that the address provided matches the registered address of the card 6 TECHNOLOGICAL SUPERIORITY As the UK s most creative and innovative Credit Reference Agency (CRA) we understand the importance of investing in technology to ensure we are able to respond quickly to new challenges and market developments. We recognise the importance of consistently fast response times in the Short Term and Instalment Lending Sector, especially when assessing whether to buy new leads, and continually invest in our technology to ensure that our search response times are faster than our competitors. Furthermore, we provide 24*7 system availability as we understand this is vital with applications received at all hours of day and night. The amount of data we hold enables us to match more applicants to our databases with the greatest levels of confidence and accuracy in the market. Our ability to search undeclared address links uncovers a huge amount of significant credit data, both derogatory and positive, to help make more accurate credit risk decisions. Finally, linking to Callcredit is exceptionally easy. Our data is simple to link to and integrate into your decision systems at the point of application via our API. Our technology has been specially designed with web channels in mind, and is a fully documented XML web service. This has consistently enabled our clients to save both time and money in adopting our solutions in comparison to our competitors. Furthermore, we have already established links with all the major third party loan management software providers. 8

10 7 SMARTER, MORE ACCURATE CREDIT DECISIONS We provide a summarised version of applicants credit file data designed for use within your scoring and decisioning software. It features a range of key features to ensure it returns the most relevant and predictive range of data available in the market for assessing your applicants:- KEY FEATURES OF SUMMARISED CREDIT DATA - THE BUREAU SUMMARY BLOCK DIFFERENTIATOR Data Granularity Short Term Lending Category Auto Search Address Links DETAILS More diverse range of product categories and account status types than other providers, including Home Credit and a new range of 29 Short Term Loan specific concepts Check if your applicants have searched for, taken out and repaid or defaulted on similar loans in the past, as well as reference the total value of loans over time. These concepts have been developed through consultation with Short Term Lenders Uncovers more data, even from undeclared addresses, with as much as 50% more derogatory information being revealed Time Since Data Time Series Data Positive Data Card Payments and Cash Advance A comprehensive range of concepts based on the time elapsed since various derogatory events help to better differentiate applicants Various current data against 3, 6, 12 or more months ago provides insight into whether an applicant s situation is improving or deteriorating and can be highly predictive Unlike many other data providers we can offer a massive range of positive financial records. Details of accounts that applicants are keeping up to date can be extremely powerful discriminators UK Cards Association Behavioural Data Sharing (BDS) information on card payments and cash advances provides further discriminatory power for your credit decisioning Our consultants will work with you to identify the most predictive data for your business from within our Bureau Summary Block (BSB). As well as our summarised credit data we can also offer the underlying raw credit data for those lenders who prefer to use it. Raw data is available via the same API. There is a huge amount of additional information available for those organisations with the analytical capability to analyse it and implement scorecards and strategies referencing it. Our consultants are also happy to help you uncover the power of raw data. 9

11 8 UNRIVALLED EXPERTISE At the heart of Callcredit s proposition is an absolute commitment to helping our clients make smarter, more accurate decisions. CONTROL REFERRAL AND FALSE POSITIVE RATES TO STOP FRAUD WHILE MINIMISING THE IMPACT ON GENUINE APPLICATIONS Callcredit provides support from our experienced team of specialist consultants and analysts to assist with decision making and lending strategy. Such support can include the provision of suggested policy rules and advice on which concepts are typically the most predictive data variables, as well as more in-depth consultancy such as Post-Decline Analysis, Applicant Profile Comparisons and Health Checks. HEALTH CHECKS NEW PRODUCT ANALYSIS APPLICANT PROFILE COMPARISONS FIGURE 2 OPTIONS FROM THE CONSULTANCY MENU FRAUD OPTIMISATION POST DECLINE ANALYSIS Each of our clients benefit from the service provided by our dedicated Lending team. In addition to expert consultancy this includes help with setting up and linking to Callcredit, ongoing client management and service support. Our wealth of expertise, innovation and dedication ensure our clients receive unrivalled levels of service and support, whether transferring from another data provider or launching UK operations. 10

12 BE ALERTED TO THE TRUE OWNER OF A BANK ACCOUNT OR CARD IF IT DOES NOT BELONG TO THE APPLICANT PRESENTING IT. PROVE WHETHER THE APPLICANT IS THE NAMED OWNER OF THE ACCOUNT AND CONFIRM WHETHER YOU ARE DEALING WITH A VALID CARD 9 MATCH MORE BANK AND CARD DETAILS TO INDIVIDUALS Callcredit also provides a range of unique debit card and bank account checks that provide additional identification safeguards and validate the payment details provided by the applicant. Payment checks provide further assurance, highlight potential fraud risks and improve operational efficiency. Callcredit reference a greater number of bank account details than our competitors and tests show that we can provide individual matches on a significantly higher proportion of your applicants. VERIFY BANK ACCOUNT DETAILS Linking bank account details to the applicant s name and address provides a vital additional authenticity check to provide reassurance that you know who you are dealing with. VERIFY PAYMENT DETAILS Validate that the payment card is capable of taking payments and that it has been issued by the provider quoted in the application. OWNERSHIP FRAUD ALERT Be alerted to the true owner of a bank account or card if it does not belong to the applicant presenting it. This feature highlights where a bank account or card is held by another individual, whether that individual resides at a different address and whether they have a different surname. 11

13 CONTROL AND OPTIMISE REFERRAL RATES AND FALSE POSITIVE RATES TO PREVENT FRAUD WITHOUT STOPPING GENUINE CUSTOMERS FROM ACCESSING SERVICES 10 OPTIMISATION OF YOUR FRAUD PREVENTION STRATEGY It s crucial to know who you are dealing with. We understand the need to verify customers instantly and seamlessly without increasing exposure to fraud, so that you can safely accept more customers. We are working with many of our clients to help them get the most from their fraud prevention tools and optimise their strategies. This involves reviewing and refining the complex interactions between large ranges of different rules. The aim is to reduce fraud losses, reduce false positives and improve pass rates and customer experience for legitimate applicants. INSTANT AUTOMATED APPLICANT VERIFICATION REQUIREMENT Detect and Prevent Fraud Improve Operational Efficiency Meet Regulatory Requirements DETAILS Pinpoint more fraudulent customer applications by delivering an entirely configurable fraud prevention strategy through a single interface. Control and optimise referral rates and false positive rates to stop fraud without stopping genuine customers from accessing services Maximize straight-through instant processing of applicants and enhance customer experience Meet UK Anti Money Laundering regulations to reduce risk of non compliance and ensure you know exactly who you are dealing with

14 INCOME VALIDATION REFERENCING CURRENT ACCOUNT CREDIT TURNOVER LENDING ALL IN UNDER 2 SECONDS! There doesn t have to be a contradiction between fast, user-friendly online application processes and responsible lending. Delivering money to successful applicants in a matter of minutes from an online application can be done based on accurate, responsible lending decisions. Just look at the breadth of data Callcredit can return on your applicants in a couple of seconds! FIGURE 3 ALL IN UNDER 2 SECONDS! COMPREHENSIVE CREDIT REPORT REAL-TIME SHORT TERM LENDING SEARCHES CONFIRM BANK ACCOUNT LINKS TO APPLICANT DEBIT CARD VELOCITY CHECKS SHORT-TERM LENDING SPECIFIC CONCEPTS What our customers say about US Callcredit has an unparalleled understanding of the issues we face as a short term lender, especially the increased regulatory requirements. They also have by far the most in-depth data available. PAMELA O DRISCOLL, OPERATIONS MANAGER, NORTHWAY GROUP As we had already been using Callcredit s credit assessment and ID verification and fraud prevention solutions we knew that Callcredit had a range of innovative and dynamic products, so it was a simple choice to incorporate their Affordability Report into our new lending assessment process. It seems as if we are both working for the same goals together. The people of Callcredit are great to work with and a few have become good friends on the way. KRISTJAN NOVITSI, CEO, PEACHY We are extremely happy with the service Callcredit provides. They provide by far the most predictive data for risk assessment in the Short Term Lending sector. Needless to say, that is an important reason why we have extended our contract with them. Furthermore, since we ve been working with them they have been a constant source of help and support whenever needed. ADAM FREEMAN, FOUNDER AND CEO, MR LENDER 13

15 TEN REASONS TO CHOOSE CALLCREDIT 1 Unrivalled data coverage 2 MODA Updates 3 Real-time search information 4 Income validation and affordability assessment 5 Real-time fraud checks 6 Technological superiority 7 Smarter, more accurate credit decisions 8 Unrivalled expertise 9 Match more bank and card details to individuals 10 Optimisation of your fraud prevention strategy What s more, we re happy to put our data to the test Please speak to any of the Lending team or contact@callcreditgroup.com to find out how to find out what we can do to help your business.

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