digital lending fraud Fraud loss climbed to € 1.8 billion across 19 European countries in 20161but mitigating risk isn’t the only key objective for lenders who want to gain an edge on the competition in the digital age. Creating operating efficiency through digitization can help European digital lenders seize on $150 billion in annual origination2, approving more secure loans, faster. 

If you’re planning on attending LendIt London on November 19-20, don’t forget to stop by our booth to learn more about how you can mitigate risk and approve more secure loans, quickly.

As lending opportunities across Europe grow, so does the risk of fraud loss

According to a recent study by Experian, almost three-quarters of European businesses experienced fraud in 2018, and nearly two-thirds report the same or higher levels of fraudulent losses over that same period. Compared to what period?

While 75% of businesses want advanced authentication and security measures that have little or no impact on the digital customer experience, the Experian report also shows that lack of visible security was the No. 1 reason customers abandoned a transaction.3 In order to successfully win good, savvy yet skeptical customers in a new digital economy, lenders need to provide an identity verification that’s tangible enough to instill a sense of security – but seamless enough to create a process that feels smooth and natural, unlike clunky knowledge-based authentication solutions.

63%
Of businesses have experienced the same or more fraud losses in 2018 compared to 2017
66%
Of consumers like security protocols when they interact online because it makes them feel protected
25%
Of consumers have forgotten a username or password within the past 6 months 27% Of customers abandon a transaction due to a lack of visible security

Make lending and financing instant, convenient and secure to slash risk and grab rewards

Automating identity verification for customer financing and digital lending can not only help build trust and ensure customer security, but it can also boost onboarding efficiency. In addition to instantly verifying a customer’s identity, it can help significantly reduce credit scoring time and customer onboarding time. 

Find out how this consumer finance company integrated online identity verification to boost conversions and decrease fraud 

Aplazame, a Madrid-based fintech startup, began using Mitek’s Mobile Verify® technology to validate customer identity through the automated verification of an identity document in order to help them realize their goal of revolutionizing e-commerce financing.

As opposed to the traditional financing model, this type of real-time scoring system not only disrupts e-commerce business models of the past, but it also addresses two of the main challenges facing the e-commerce sector: reducing price sensitivity and increasing affordability. Aplazame was able to verify their customers’ identities within 20 seconds, thereby offering them instant, secure and streamlined financing in connection with e-commerce purchasing.

The benefits include:

  • 20% increase in conversions
  • 88% decrease in fraud
  • Support for compliance with KYC/AML  

Read the case study here

If you’re interested in learning how the right identity verification tools can help you quickly approve more applicants, customers and loans, schedule a meeting with us at LendIt London.

While there, don’t miss Mitek’s Product Director, Steve Craig, speak on the “What are the Fraudsters Up to and What Tech can Stop Them” panel. He’ll be unpacking the latest trends in fraud, as well as exploring what technologies can help lenders and financial institutions stay one step ahead of them. See the schedule here. 


References

  1. “Evolution of card fraud in Europe 2016.” FICO blog, June 2017. (https://www.fico.com/blogs/analytics-optimization/the-story-behind-europes-e1-8-billion-card-fraud-problem/).
  2. “European Digital Lenders: How operating efficiency is helping digital lenders attack at $150 billion annual origination market across the Eurozone in 2018.” Autonomous Next, November 2018.
  3. “The 2018 Global Fraud and Identity Report: Exploring the links between customer recognition, convenience, trust and fraud risk.” Experian
  4. "The 2018 Global Fraud and Identity Report: Exploring the links between customer recognition, convenience, trust and fraud risk.” Experian

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