A new cloud-based service, letting consumer lenders improve loan quality and acceptance rates through the use of big data, is leading the charge in the fight against cyber criminals and online fraud.
Big Data Scoring – a tool used by banks and financial institutions to determine someone’s creditworthiness based on data secured online – has introduced a range of new features to see if the user’s actions are legitimate.
It does this using analytics and behavioural modeling, comparing how an honest user behaves compared to someone trying to commit fraud. A strong correlation has been identified between email account creation dates, invalid phone numbers and credit quality. As a result, Big Data Scoring have introduced new features to identify unusual behaviour. This behaviour includes copy and paste in uncommon fields, email addresses set up just minutes ago and an uncharacteristically short amount of time spent on the website.
Launched in the UK last year, Big Data Scoring taps into the broadest source of information – from across the internet – using publicly available and authorised information. This data, used in conjunction with more traditional scoring methods, brings lending into the digital information age, allowing lenders to make informed credit decisions.
Erki Kert, CEO at Big Data Scoring, commented: “Online fraud is currently rife and threatens the stability of our financial systems. We are seeing more sophisticated forms of fraudulent activity each day. We adapt our technology accordingly, by identifying trends and updating our processes.“
“The better we become at identifying fraud online, the more accurately and responsibly financial institutions can lend to consumers. This is particularly important for young people, many of whom suffer as a result of the current system. All too often under-30s receive either too much or too little credit, which in turn contributes to the personal debt crisis we’re experiencing here in the UK. ”
YouGov research, commissioned by Big Data Scoring, reveals one in four (25%) of under-30s have been declined a financial product, while one in ten (11%) fear they’ll never be able to pay back their debt.
Credit scoring millennials and non-UK nationals has always been tricky for lenders: the lack of credit history means that lenders often get it wrong, offering either too little or too much credit. Intelligent research of a loan applicant online helps to build a clearer profile from which to assess creditworthiness.