LexisNexis® Risk Solutions today announced the availability of LexisNexis® Decision Trust to help financial services companies increase financial inclusion by making more informed decisions. on customer acquisition and loan applications while managing or lowering fraud rates. By generating global information from a database sourced from the LexisNexis® Digital Identity Network®, Decision Trust helps companies predict the likelihood that an application is fraudulent while reducing the need for manual analysis.
The World Bank describes financial inclusion as the access of individuals and companies to useful and affordable financial products and services that meet their needs (transactions, payments, savings, credit and insurance) delivered in a responsible and sustainable manner. Nearly two billion adults worldwide lack access to useful and affordable financial services, despite the fact that 1.2 billion adults worldwide have received access to an account between 2011 and 2017.
However, access to transaction accounts alone has not led to increased access to credit because most lenders may have limited information on these new account holders. Not having access to credit makes it difficult for them to send and receive payments, save money, secure sustainable credit, and manage their financial lives.
This can impede access to basic services such as telecommunications and prevent people from joining the digital economy and contributing to financial development. Financial exclusion also affects small and medium-sized companies. More than 200 million companies in emerging markets lack access to finance, limiting their opportunities for growth and local economic development.
Decision Trust helps financial institutions determine the fraud risks associated with an application with the goal of greater inclusion for credit-invisible populations. While a significant portion of society in emerging countries may not have sufficient credit bureau history, this new solution provides the insights needed to include customers previously denied service due to misinformation. , while keeping scammers out.
“To improve approval rates with confidence, companies must strike the right balance between having robust processes to assess fraud risk without adding barriers that will slow down or even interrupt the customer journey,” said Brian Hirsch, vice president of financial inclusion strategy at LexisNexis Risk Solutions. “More than 30% of adults are still unbanked and remain excluded from the financial system. LexisNexis Decision Trust supports financial services organizations in their efforts to promote financial inclusion by providing additional information that enables more informed decisions about the customer acquisition and fraud risk. Leveraging global intelligence from across the industry promotes greater inclusion in populations invisible to credit.”
LexisNexis Decision Trust benefits include:
- Better acceptance rates: Lenders can reduce rejection rates caused by insufficient consumer information. Separating fraudulent applications from legitimate ones can help increase the number of credit disbursements while managing default rates.
- Improved customer experience: Near real-time insights into loan applications enable better onboarding speed and experience, higher conversion rates, and fewer requests for manual data entry, allowing for less friction.
- Lower operational costs: Allow financial institutions to perform fewer manual reviews and eliminate additional human-led steps.
LexisNexis Risk Solutions insights bridge physical and digital consumer behavior, unlocking new market segments while enabling risk exposure management. Unlike traditional data that covers only a subset of the community, the alternative data in Decision Trust comes from billions of Digital Identity Network transactions, reflecting consumer behavior across the economic spectrum and giving businesses stakeholders rich information to confidently reject or approve requests based on scoring models.
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