Dishonest acts by “long-trading” and “good” consumers are possibly being overlooked. Consumers who, through no fault of their own, have found their financial situation greatly impacted in the current climate – furlough schemes, redundancies and the self-employed being impacted by business closures – are placing more consumers in financial difficulty.
Determining the intent of an applicant using today’s technology can prove futile, which leaves FIs to use a tool that has many unintended consequences… friction. But friction is not a solution. It does drive away some fraud but at a huge cost to legitimate prospects abandoning the site in search of a better user experience.
The answer is in your data. The customer data that you use to drive current AI or machine learning risk models, the customer data that is used to retrieve credit bureau information and drive underwriting decisions. The truth is hidden in that data. Human behavior can be translated from that data, opening a new view into the intentions, potential fraud and profile of each customer, minus the friction.
Want to know how to interpret the behavioral analytics that resides inside your customer data and see and combat fraud in real time? Contact me.