Online lenders are facing an enormous opportunity: According to Experian, nearly 64 million consumers have limited or no traditional credit history, resulting in approximately 25 percent of the U.S. population being unbanked or underbanked.
As more lenders enter the market competition is getting fierce. In a survey of borrowers, PwC found that borrowers’ top three factors in choosing a lender are the products offered, a history of working with the institution, and speed to funding. Borrowers expect the application and approval process to be speedy — even to the point of being willing to pay a higher APR.
Speed to funding is one of the biggest areas where new lenders can differentiate themselves from the competition. In our new ebook on online lending, we look at one of the most important areas lenders can focus on to shave time off the application process: the top of the funnel.
Evaluating lead quality at the top of the funnel can help institutions fast-track legitimate applications and weed out fraudulent orders. In addition to gains in speed, the benefits of filling your funnel with high-quality leads comes in the form of an increased take on loan offers and decreased First Payment Default rates later on in the process.
Most lenders make basic checks on purchased leads by consulting blacklists and using geographic filters and velocity checks to ensure candidates are eligible to receive funding. However, most don’t enact thorough identity checks until further down the funnel, which slows their process too much to be competitive in a real-time marketplace.
Download Speed to Lead: Identifying Good Customers at the Top of the Funnel to learn:
- How top-of-funnel identity checks can make your institution competitive when serving thin file borrowers
- How a combination of personally identifiable (PII) and non-PII data verify legitimacy
- The power of positive borrower identity data signals, and which critical risk signals can be indicated through identity data
In order to be competitive, your organization needs to be using identity data to verify leads at the top of the funnel — without compromising approval speed. Fortunately, the process is relatively easy and straightforward. Download our ebook to learn how your institution can become more competitive in the online lending market today.