Your organization thrives on being able to generate increased revenue through consumer loans. But this doesn’t come without immense risk.
The higher price tag associated with borrowing money in Canada combined with potential job losses is causing more and more consumers to default on their loans.
For this reason, it is critical that financial institutions and alternative lenders master the art and science of credit risk management. Fortunately, credit risk modelling can help with this.
Here’s a rundown on how we at Inverite are using the latest technology and software for managing counterparty risk.
Credit Risk Modelling
We are Canada’s first provider of bank verification services in real-time. We offer various risk models that match the conditions of different industries. This is available through our Risk Score service.
When you partner with us, we can build a custom credit risk model for you. We have worked with clients that provide the following types of lending services:
- Payday lending
- Subprime lending
- Small business lending
- Instalment lending
- Automobile lending
The risk model that we create for you at Inverite uses both banking data and customer profile data. This information is available in our Micro Check database (more on this next). We also use consumers’ previous repayment histories to further elevate our algorithms.
The data we use come from more than 500,000 bank reports. We have essentially trained our machine learning, or ML, algorithms to produce statistical predictions.
These ML predictions are based on the patterns we detect in several million customer transactions. They are also based on consumer profile data.
Capitalizing on Our Micro Check Database to Decrease Counterparty Risk
Through our novel Micro Check database, you can access detailed information about consumers’ creditworthiness. This is the only database with non-registered loan information that offers this capability in Canada.
For instance, this database solution puts all of the alternative loans that individual consumers have requested in a single place. It also updates this information regularly. Your organization can then make informed decisions about whether to lend to certain consumers.
In addition, you can collect information about and keep track of your customers with ease. You and other lenders can share this centralized database to prevent errors or delays when processing loans as well.
This solution will ultimately help you to more easily steer clear of the risks that come with offering loans.
Using Our Database Before Making a Loan
Before you decide to issue a loan to a consumer, our database can help you to access a potential customer’s personal information. For instance, you can discover a potential customer’s status and history according to other lending companies.
We will ensure that the information you receive about potential clients is consistent by obtaining updates in real-time for you.
How We Can Help You After the Loan
Once you have issued a loan to a consumer, you can use our database to access more data on the customer as needed.
For instance, you can find out new personal information about a client. In addition, you will gain access to their new phone numbers, jobs, or addresses. This will make it easier for you to track your clients.
Our Other Credit Risk Management Solutions
Micro Check can be bundled with the Risk Score solution we mentioned earlier, as well as a couple of our other services to provide you with the ultimate credit risk support solution. These other services are Bank Verify and ID Verify.
Through Bank Verify, we offer top-tier bank verification instantly. We receive support from more than 274 financial institutions in Canada.
With this solution, you can securely and easily connect a user’s financial information to your company. This is true whether you’re a money service company, personal finance application owner, or online lender.
We offer multiple application program interfaces that will enable you to access financial data dating back to a year. You can do this in seconds.
The information you’ll receive through this service includes the following:
- Checking accounts
- Credit card accounts
- Saving accounts
You’ll also be able to obtain account owner names, addresses, and contact information.
Another solution Inverite offers is ID Verification. This service offers browser-based age and identity verification without relying on checks with credit bureaus.
ID Verifcation can help you whether you have to verify a consumer’s identity to meet regulatory requirements or prevent fraud.
Through ID Verification, you can verify people’s identities using the following:
- Medical service cards
- Driver’s licenses
- Provincial identification
Facial recognition is also available for matching against selfies.
Cost-Effectiveness of Our Database Solution
One of the chief benefits of working with us is that our services are aggressively priced.
We charge based only on usage. In addition, we don’t charge hidden fees or even monthly minimums. We also don’t require a long-term commitment on your part, and you don’t have to pre-purchase any credits.
This model makes the service simple, fast, and reliable to use no matter what size your business is.
For instance, a search costs you only $3 if you plan to perform up to 1,000 searches. Meanwhile, the price drops to $2.25 per search if you aim to complete 20,000 or more searches.
How We Can Help With Credit Risk Management
Our credit risk modelling solutions at Inverite will allow you to learn as much as you can about a consumer before issuing them a loan.
For instance, you can find out how many loans the potential customer has sought out and whether they were ultimately granted them. In addition, you can discover the amounts of these loans. You can then reach an informed lending decision with the help of our credit risk management support.
Get in touch with us to learn more about how our solutions can help you to decrease your counterparty risk, and book a demo today!