A National Consumer Lender eliminates fraud and saves money verifying income with Truv.

Case Study Summary

Problem

A home improvement lender was ready to expand its business but saw a major financial risk from fraudsters with fake income documents.

Solution

Truv provided the fintech with a modern way to verify income and employment, allowing it to scale efficiently and eliminate fraud.

Outcome

Since implementing Truv:

• Fraudulent loans funded = 0
• Costs saved compared to legacy solution = 60%
• Conversion Rates = 60%

A Rise in Fraud Risk Threatened a Consumer Lender’s Expansion Plans

A fintech company focusing on home improvement lending had plans to expand its business after the pandemic to more than ten-thousand loans a year, but the looming threat of fraud was standing in the COO’s way. Nowadays, fraud is cheap to get away with, but very expensive to mitigate, and with home improvement loans 6-7 times greater than the average value of other lenders in the space, this company had a real financial challenge on its hands.

The company made a decision that it was going to go to the market to find an income and employment verification solution that will allow it to scale, save money and prevent fraud. It wanted a technology partner that could provide a best-in-class service for its customers that worked similar to an open banking product. This would create a seamless experience their consumers were already familiar with and would cut down on fraud.

No Fraud, Less Costs, Great Conversion Rates

The COO and the mortgage team have quickly found value with Truv. With a conversion rate of greater than 60%, the company is issuing loans in line with its goals and has had no cases of approving fraudulent documents threatening its progress.

Truv’s performance is saving the company money in two key ways. “Even if we can save two fraudulent loans from being funded,” says the COO, “it’s a net positive for us.” That would equal about $140K in savings. Combine that with verification costs which are 60% less than legacy solutions and you have a measurable return on investment.

The COO says “the huge benefit to the company is fraud reduction, and for customers, a more efficient process. A person can log in easily and finish in a minute or two. It’s also much more secure, because they are not risking sending data over email. They provide it directly from the provider to the firm.” “We have drastically increased our confidence in income verification,” says the COO.