New Consortium to Enhance Responsible Lending Through Leveraging Collective Data Across the Industry
LAS VEGAS, MONEY 20/20—ID Analytics LLC, a leader in consumer risk management, today announced the launch of the Online Lending Network, a new consortium formed to enhance responsible lending, help protect consumers and businesses, and address credit and fraud risks. Founding members include Lending Club, Prosper Marketplace and Marlette Funding, as well as lenders representing online, marketplace, specialty finance and social lending. The network has achieved significant coverage of prime and sub-prime lending in only a few months, including over two-thirds of marketplace lending activity.
In today’s digital world, consumers are choosing online engagement and expecting immediate loans and funding. Meeting that expectation means online lenders face new challenges for loan origination and fulfillment. ID Analytics created a near real-time repository for online loan activity, enabling lenders to better assess a consumer’s intentions and actions.
Through the Online Lending Network, lenders report when a consumer requests an offer for a loan product, submits a loan application, or when a loan is funded. In return, the lender receives information on whether that consumer has either requested other loan offers or applied for loans elsewhere in the days, hours or minutes before. The near real-time nature of the response makes high-velocity fraud, like loan stacking, very difficult. It also has the potential to protect authentic consumers from overextending their credit capacity to facilitate responsible lending.
“Adoption was key for the success of this effort,” said Scott Carter, chief executive officer, ID Analytics. “We’re thrilled about the participation in the Online Lending Network. With industry-wide buy-in, members can leverage the power of the ID Network® consortium model to better assess a consumer’s current level of risk and detect fraudulent activity. In addition to helping the industry, the Online Lending Network will preserve the unique business model that enables consumers’ choice of loan products without affecting their credit.”
“New-account fraud more than doubled in the past year. Fraudsters are always looking for an easier way to make more money and are targeting this relatively new financing model by going after businesses that lend online,” said Al Pascual, senior vice president, research director and head of fraud & security at Javelin Strategy & Research.
“The Online Lending Network enables us to achieve two simultaneous goals,” said Doug Mihalow, director of credit risk management for Marlette Funding. “Protecting consumers from opening more loans than they are able to reasonably repay and reducing the number of fraudulent accounts opened. ID Analytics was uniquely suited to bring together all the players to solve this problem and is responsively providing the capabilities needed to lower risk in online lending.”
The Online Lending Network will also provide access to tools to evaluate credit, including the detection of synthetic identities, and detection of potential identity theft, as online lenders are a target for fraudsters using stolen identities.
About ID Analytics LLC
ID Analytics is a leader in consumer risk management with patented analytics, proven expertise, and real-time insight into consumer behavior. By combining proprietary data from the ID Network®—one of the nation’s largest networks of cross-industry consumer behavioral data—with advanced science, ID Analytics provides in-depth visibility into identity risk and creditworthiness. Every day, many of the largest U.S. companies and critical government agencies rely on ID Analytics to make risk-based decisions that enhance revenue, reduce fraud, drive cost savings, and protect consumers. ID Analytics is a wholly-owned subsidiary of LifeLock, Inc. please visit us at www.idanalytics.com.
ID Analytics and ID Network are registered trademarks of ID Analytics LLC all other trademarks and registered trademarks are the property of their respective holders.
For more information contact:
Jennifer Asaro/Chris Poisson
MSLGROUP for ID Analytics LLC