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LendIt Fintech News: Daily Coverage of Fintech & Online Lending


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How Lenders Can Mitigate Fraud in Challenging Times

A recap of last week's webinar on Consumer, Paystubs & Fraud: Insights & Digital Solutions

April 7, 2020 By Todd Anderson Leave a Comment

Views: 212

Lenders are facing some extraordinary times right now as they try to prepare for the months ahead. Underwriting risk has become almost impossible and fraud is bound to surge as desperate people look to all options for survival.

Last week we hosted a webinar that was presented by Equifax which featured their Director of National Accounts, Chad Gray. The conversation centered around fraud as it relates to paystubs and other key underwriting data. Uncertainty has only increased the amount of anxiety lenders are feeling and with unemployment skyrocketing they will soon wonder if any applicant has a job.

Loan applicants are required to fill out a lot of different forms and add a lot of personal data in order to acquire funding. Within these different data sets consumers might inflate or misreport their income as is the case with mortgages for example. Knowing the red flags will help to identity fraudulent data quickly so the lender can accurately assess the risk of that borrower.

It has become pretty simple to make fraudulent paystubs, as according to Equifax there are more than 160 websites that help create paystubs. Some of these sites can also falsify bank deposit forms, bank statements and W2’s. Making a change in your application from estimated income to verified income could make a huge difference for the lender.

Equifax’s Work Number Database enables employers to update the payroll data every pay cycle which provides lenders with the most up to date income data on a borrower, thereby eliminating the need for paystubs at all. The company has amassed more than 500 million total records with more than 500,000 employers contributing. The Work Number can be used throughout the loan cycle which gives lenders a deeper understanding of their borrowers.

As uncertainty continues in the near term a tool like the Work Number can help lenders better asses risk and cut down on potential fraud. Lenders using the Work Number saw a 40 percent increase in conversions to closed loans.

If you’re interested in listening to the entire webinar you can access the recording here.

More from LendIt Fintech

Our next webinar is called COVID-19 Planning for Fintech: 5 Ways to Maximize Efficiency with At-Home Agents on Thursday April 9th. As the effects of COVID-19 become more widespread and impactful, many fintech leaders are considering having some, or all of their contact center agents, work from home. Join Jennifer Kuechler of Strategic Link Consulting, Stephen Picciotto of ARB Call Facilities, and Jason Swift of Marlette Funding with moderator Jim Lynch of LiveVox.

Filed Under: Fintech Tagged With: credit and underwriting, Equifax, fraud, webinar

Views: 212

LendIt Fintech Launching New Webinar Series

The first two webinars, as part of our new digital initiatives, are launching later this week.

March 24, 2020 By Ryan Lichtenwald Leave a Comment

Views: 162

Now more than ever it is important to bring the fintech community together. Many readers are already aware that we have made the tough decision to postpone LendIt Fintech USA 2020 to late summer/early fall. To help you navigate these unpredictable times and continue to engage with your clients and peers, we are rolling out a series of regular digital events including: webinars, virtual panels and virtual roundtables. Keep an eye out for more topics in various formats to be covered in the coming weeks. The first two webinars are beginning this week.

How Small Business Lenders are Responding to the Rapidly Changing Economic Conditions

Thursday March 26th • 1:00 PM ET

These are uncertain times. While lenders need to do everything they can to support affected borrowers they also need to make sure they maintain a healthy and sustainable business. Learn how these lenders are balancing these issues during this time of crisis.

Some of the topics to be addressed include:

  • What small business lenders are doing to help existing borrowers
  • What they are hearing from small business owners
  • Current discussions around the government stimulus
  • How fintech companies might play a role in getting government money to small business owners
  • Differences between how banks are handling the current situation
  • Predictions on what the next three months could look like
  • and much more!

Register now

Consumer, Paystubs & Fraud: Insights & Digital Solutions

Tuesday March 31 • 2:00 PM ET

Many customers want to improve their risk profile while offering decisions to their customers quickly. Join us for this webinar to learn: the red flags associated with consumer provided pay stubs, the money that consumers don’t tell you about, the way verified data can help increase your funded loans.

Register now

Filed Under: Fintech Tagged With: Brock Blake, consumer, digital solutions, Equifax, fraud, Kabbage, Kathryn Petralia, Lendio, Luz Urrutia, Opportunity Fund, paystubs, small business lending, webinar

Views: 162

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ABOUT LENDIT FINTECH NEWS

LendIt Fintech News, Powered by Lend Academy, has been bringing you all the news and information about fintech and online lending since 2010 when it was founded by Peter Renton. We not only have the industry’s most active news site, but also the largest investor forum and the first and most popular podcast.

We are a team of fintech enthusiasts who have been covering the industry for many years. With a deep knowledge of online lending, digital banking, blockchain, artificial intelligence and more our team covers the daily news and writes in-depth editorials.

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