New Features Help Replace Costly and Ineffective Knowledge-Based Authentication Tools

SAN DIEGO, Dec. 20, 2022 /PRNewswire/ — Point Predictive Inc., the San Diego-based company that provides artificial intelligence solutions, today announced BorrowerCheck™ 2.0, a solution designed to identify prospective borrowers with identity, income, or employment-related risks. The solution’s new features introduce a consumer-friendly way to validate a borrower’s identity, income, and employment in a single report, along with phone-based authentication to confirm a borrower’s identity. This solution helps lenders replace knowledge-based authentication (KBA) tools that use questions generated from a wide range of public information that can be accessed by fraudsters and that legitimate consumers have a hard time answering. Data reveals that up to 92% of fraudsters can successfully pass knowledge tests compared to 46% of legitimate customers.

BorrowerCheck 2.0 revolutionizes the way the industry will manage risk by combining identity, employer, and income validation and compliance risk requiring only a few fields of data in a single request via a real-time API or user-friendly, web-based interface. This groundbreaking advancement allows companies to look beyond standard identity indicators available through public records to rich new signals on identity, income, and employment fraud. The solution has also been enhanced to automate the mandatory Office of Foreign Assets Control (OFAC) check required by federal regulations and provide a comprehensive red-flag report that reveals disparities in self-reported data.

When additional scrutiny is warranted, the solution provides suggestions for alternative ways to validate a consumer’s reported information. One of those ways is through phone-based authentication rather than relying on onerous and ineffective knowledge-based authentication surveys. Using phone-based authentication, BorrowerCheck enables lenders and automotive dealers to validate a borrower’s identity in seconds by providing consumers with a one-time passcode on their mobile devices. This significantly reduces the friction consumers experience attempting to complete KBA quizzes and lessens the time it takes to verify the consumer’s identity while limiting the likelihood of fraud.

“Helping companies minimize risks while enabling truthful borrowers to get funded faster and with less friction is our top priority,” said Tim Grace, CEO of Point Predictive. “Traditional identity solutions rely primarily on public record data and those sources have no visibility into employment fabrication or income manipulation. With BorrowerCheck, companies now can not only tap into public record data but our proprietary risk data which contains information on more than 17 million employers and 147 million reported incomes. We’re solving risk by filling in those blind spots for lenders that existing solutions don’t cover. This is a game changer in identity validation since it’s a much easier approach for credit providers as well as their consumers.”  

BorrowerCheck customers can expect to reduce the cost of validating consumer identity, income, and employer data and improve the lending process for consumers. Using a simple set of data such as the consumer’s full name, street address, phone number, date of birth, and social security number, lenders and dealers can access a comprehensive red flag check validating a borrower’s identity, income, and employer in a single report.

BorrowerCheck is powered by the proprietary Point Predictive data consortium that includes more than 20 billion unique consumer risk attributes derived from more than 120 million consumer credit applications. This unique data source enables BorrowerCheck to accurately identify inconsistencies related to identity, income, and employment, key indicators of fraud and misrepresentation that can lead to early payment default.

Point Predictive invites lenders and automotive dealers who wish to learn more about BorrowerCheck to visit https://pointpredictive.com/ or contact info@pointpredictive.com.

Point Predictive powers a new level of lending confidence and speed through the unique combination of artificial intelligence, a powerful data consortium, and decades of risk management expertise. The company’s data and technology solutions quickly and accurately identify who is reporting truthfully on their loan applications and who is not. As a result, lenders are now able to fund loans easily without asking the vast majority of applicants for onerous documentation such as paycheck stubs, utility bills, or bank statements. This improves funding rates by 40-50% while reducing overall early payment default losses by more than 30%. Borrowers get loans faster and we significantly boost profits to a lender’s bottom line. Located in San Diego, California, more information about Point Predictive can be found at www.pointpredictive.com.

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SOURCE Point Predictive