Problem Statement
A leading digital payments and credit platform aimed to strengthen its risk management and underwriting processes by partnering with OnGrid for advanced Contact Point Verification. The objective was to overcome challenges in verifying borrower addresses, ensure regulatory compliance, minimize fraud risk, and improve loan recovery efficiency.
Challenges
Overcoming Verification Challenges in the Fintech Industry
Inaccurate or Incomplete Address Details
Many borrowers provided incomplete or inaccurate address information, making it difficult to locate them for loan recovery or communication. This resulted in inefficiencies in service delivery and hindered loan collection efforts.Difficulty Verifying Borrower Identities and Locations
Verifying the authenticity of borrower addresses was challenging, increasing the risk of fraudulent claims and defaults. This lack of reliable verification exposed the company to potential financial losses and reputational harm.Heightened Risk of Fraud and Non-Compliance
Unverified borrower information heightened the risk of fraud and non-compliance with regulatory standards, creating legal and financial risks for the company.
The Solution
OnGrid’s Contact Point Verification: A Comprehensive Approach to Address Verification
Address Validation
OnGrid’s field agents physically verified borrower addresses, ensuring the accuracy and currency of the information provided. This allowed the loan recovery team to identify the correct locations, while also capturing nearby landmarks for future reference.Trust Building through Comprehensive Data Collection
OnGrid’s solution included the verification of key details such as identity documents and bank information, helping to establish a trustworthy relationship between the institution and its borrowers.
The data collected during verification included:Type of locality
Neighbor check
Size of premises
Rented or owned residence status
Geo-Location Data Collection
Geo-location data was captured to further authenticate the borrower’s presence at the provided address. This additional layer of verification minimized the risk of fraud and ensured that the borrower’s information was legitimate.Fraud Prevention
OnGrid’s thorough data collection and validation process helped reduce the likelihood of fraudulent activities, protecting the company from financial losses and mitigating operational risks.
The Impact
Key Benefits of OnGrid’s Contact Point Verification
Timely Payments & Reduced NPA
Ensuring accurate borrower contact information helped the company encourage timely payments and lower Non-Performing Assets (NPA) effectively.Enhanced Risk Management
Verifying borrower addresses and confirming their authenticity minimized fraud risk, strengthening loan recovery efforts and overall risk practices.Increased Operational Efficiency
Automating verification reduced manual processes, allowing resources to be reallocated to strategic initiatives and boosting overall productivity.Decreased Fraud and Loan Defaults
Accurate borrower data reduced fraud and default risks, safeguarding assets and enhancing the company’s reputation as a trusted credit provider.
Conclusion
Building Trust and Reducing Risk with OnGrid’s Contact Point Verification
OnGrid’s Contact Point Verification solution played a crucial role in strengthening risk management practices for the financial institution. By ensuring accurate borrower data, improving loan recovery efforts, and maintaining compliance with regulatory standards, OnGrid helped the company reduce fraud risks, safeguard its operations, and build trust in the financial industry.
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