working with loan providers such as creditwallet
working with loan providers such as creditwallet

Working with Loan Providers such as CreditWallet to Prevent Loan Application Fraud


Accessing loans was quite strenuous in the past as many aspirants complained about the hassle, specifically the overwhelming delays experienced in identity verification processes. Recently, the launch of digital platforms offering loan services has made it much easier for people to access loans and meet their various needs. However, as opposed to in-person loan applications, validating an online borrower’s information has different challenges for financial institutions. First, an online loan application is accessible to a broad set of promising customers and similarly makes loan applications available and accessible to fraudsters. The predominant method of interaction with them is electronically or digitally, and like customers, they can access a website from any location in the world. Secondly, verifying identity online is less stringent than most in-person interactions. That means required documents can be easily forged with fake online identities. Thirdly, successfully confirming an identity online requires a great deal of scrutiny. This poses a lot of friction on the applicants’ part and may eventually affect the likelihood of gaining a new customer, which can negatively impact the operation of this type of business design in the long run.

Account origination and takeover thrive as financial institutions’ top two risk factors. According to anonymized statistics of events detected by Kaspersky Fraud Prevention from January to December 2020, the share of account takeover incidents increased from 34% in 2019 to 54% in 2020. With this recent increase in identity data breaches worldwide, all financial institutions onboarding clients and offering financial services are at high risk, thereby bending towards the heavy use of AML and KYC policies. Due to the impact caused by additional friction through AML and KYC procedures compliance, online financial services are gravitating towards limiting client data requirements during onboarding. They ensure some level of simplicity along with only what is necessary for complying with regulations added to the process, thus unknowingly ushering in the opportunity of cybercrime and online fraud. Most financial services in online lending take advantage of credit bureau databases for identity verification. It is important to note that these services offer limited features for validating identity. Checking against identity databases may be adequate to comply with AML regulations, but they are insufficient to prevent lending fraud.

To achieve a balance between reducing identity fraud; and adding friction that causes customer abandonment, it is advisable to integrate a digital identity verification with your system. Using a digital identity verification solution makes it easy to determine the risk level associated with each potential customer and only recommends more friction to the onboarding process when imperative.

This article illustrates how Princeps Credit Wallet authenticates credit seekers through Identitypass’s verification solutions.

PCSL is also known as Credit Wallet, an online loan service company that provides unsecured personal loans to Federal and other eligible salaried workers across the country through its innovative technology platform (Credit Wallet). PCSL is determined to make financial loans accessible to those who need them most, coupled with innovative technology to assess the ability to repay loans. This innovation is fueled by partnering with Credit Bureaus and employers to quickly and fairly determine an applicant’s financial position. Qualified applicants are further enabled to apply for a credit wallet loan at any time and from the comfort of their own homes.

With the integration of Identitypass’s AI-powered identity verification products, Princeps Credit System Limited seamlessly onboard and authenticates credit seekers while ultimately avoiding online loan frauds through the following ways:

Credit Seekers’ Bank Verification

The purpose of verifying a credit seeker’s bank is for financial loan services to clarify that the bank presented by the credit seeker during onboarding is legit, currently in business, and complies with the required banking regulations. This ensures added security against transacting with fake financial institutions and online scams.

Verifying Bank Account Ownership

Identitypass’s verification solution ensures that a client can access the bank account presented during the onboarding process. Validation is conducted by having the client provide specific bank credential details then a confirmation can be made by the loan agency. The process is automated, where the applicant provides his bank account. At the same time, proof has been carried out from the database to confirm if there is a match with the previously stored details. This process prevents Princeps from exposure to fraudsters, ensuring that the right person is the one getting the loan and also protecting the privacy of their customers.

Clarifying Eligibility Status

In this process, verification enables Credit Wallet to know if the applicant meets the eligibility status for applying for an online loan. It also makes it easier for the company to trace a debtor or defaulter once the refund time has elapsed, thereby preventing debt accumulation.

The combination of KYC and fraud prevention techniques during account origination are a much better solution than just one or the other. More diverse protection through digital identity verification solutions guarantees better overall results and offers alternatives to excessive friction during the identity verification process.

Want to secure your business against online fraud like Princeps Credit System?

Identitypass is currently available to businesses who desire to have the identities of their customers/clients and intended partners verified seamlessly before engaging in business transactions with them. You can contact our team to get started as a new user. We have a combination of resources for you as you begin with Identity Pass.

· Sign-up is free for new users.

· Check our use cases to see examples of what biometric authentication supports.

Our contribution in powering the growth of different companies irrespective of size and industry peculiarities has been massive. We have one of the best verification platforms across the continent while continually making it super-easy for businesses to verify identities across the globe. Our most profound aim is to keep developing the most potent, adaptable, and simple identity verification solutions as we continue to re-invent in line with healthy business trends.

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