Verification and Manual Underwriting

Identity, bank account and income verification are the hallmarks of a disciplined lending practice. With the advent of many automated verification technologies and especially cell phone cameras, our clients increasingly demand automation.

MaxDecisions has helped consumer and small business lenders alike to implement verification strategies and quickly siphon through thousands of applications and help lenders to focus on the applicants with high likelihood of conversion and do away with potentially fraudulent and unverifiable identities.

Range of verifications services

Physical Identity Verification
Phone Number Verification
Email Validation & Verification
Bank Account Verification
Income Verification
Device Identification

Identity Fraud Crash Course: "Device ID"

As fraudsters become sophisticated, device identification is a must:

  • Device ID works by injecting java script through an applicant’s browser
  • The javascript then uniquely identify the device which the customers using
  • That digital identity is then matched to previous activities
  • Device identification also signals out of country devices
  • Device identification can also be mapped to other fraudulent attempts
  • Banks and other larger financial institutions begin to implement Device ID in the early 2000’s.

Complete Verification Strategy

  • Device ID
  • Personal Identifiable Information (PII) Verification
  • Pseudo PIIs Verification (Phone, Email, Logins)

A successful verification program can prevent millions in losses whether you are a small business lender or a consumer lender. Identity are easily forged, having a comprehensive device, physical and pseudo identify verifications program is necessary to navigate today’s online environment.

Unverifiable Identities and Fraudulent Attempts

  • Forged Identity as % of All Applications
  • Foreign IP Address Blocked as % of all Applications

Verification and Manual Underwriting

Models are not silver bullets in anyone’s portfolio and automation may not be the end all, be all solution to reduce overhead cost.

There will always be elements of manual verification and underwriting. Whether it is due to loan purchase agreements with your secondary market partners or credit policies from your bank partners.

Our clients will run into scaling issues as they grow. The amount of verification and underwriting resources that’s needed might become unmanageable.

We’ve helped our clients to develop auto-verification strategies to alleviate the amount of staff needed to satisfy their verification and underwriting criteria.

Sometimes, we find that manual verification doesn’t always justify the overhead cost. There are negligible improvements in default rates and good customers are being turned away because of the added friction.

There are many income verification tools. Anywhere from modeled income estimators which is available through many of the credit bureaus. There are also services which you can use to passively verify someone’s identity with respect to their bank account. Lately, there are services which the customers logs into their online banking services and 90 days of transactions are automatically downloaded into lender’s decision engine.

Looking for a First-Class Identity and Income Verification Consultant?