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How Online Lenders are Using Non-PII Data to Fight Fraud

Personally identifiable information (PII) like name, address, email, DOB, and the linkages between them is the traditional way most online lenders make funding decisions. But non-personally identifiable information (non-PII) can be equally critical in reducing fraud.

Non-PII is data that cannot be used to identify a person on its own. This includes data like device IDs, IP addresses, wireless carriers, VoIP, and cookies. We wanted to understand just how online lenders are using non-PII to fight fraud, so we recently spoke to one of our customers, a leading loan origination company, about their process.

This company’s bottom line depends on purchasing high-quality leads which are then sent on for funding consideration to a portfolio operator. Sinking money into bad leads that weren’t likely to convert was a major cost center. So in order to cut down on the number of bad leads, the company added Whitepages Pro to the top of their online lending decisioning platform.

Their goal was to help hone in on the non-PII indicators which could help them weed out fraudulent applications.

The results?

  • Four key indicators cut 10% of bad leads. The Whitepages Pro team helped the company identify four key indicators that a purchased lead was not likely to convert, including three wireless carriers and a proxy IP address.
  • Cost per fund dropped 15%. Weeding out leads with these four indicators helped reduce the cost per funding from $109 to $92—a savings of 15% even after accounting for the additional cost of Whitepages Pro.
  • Conversion rates more than doubled. Best of all, conversion rates improved across every portfolio the company works with. In one case in particular, the company went from purchasing an average of 163 leads to 113 leads a day, while the conversion rate more than doubled from 15% to 30.22%.

As the company’s Operations Manager told us, “[Whitepages Pro} helped us identify key indicators to automatically cut bad leads and increase our conversion rates…we’re seeing great performance in improving our customer acquisition costs.”

Curious about how Whitepages Pro Identity Check can help your online lending business improve originations? Learn more here.

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