We all know how important consumer credit data can be. But how can a bank reach more customers when little credit data can easily be found?
That’s the reality of the Philippines, where the credit reporting infrastructure, the BAP Credit Bureau, is new, and many individuals still have little to no credit history.
When credit bureau information is available, some financial institutions are still subjected to unreliable and time-consuming methods of verification. One such method includes calling employers over the phone to confirm employment status.
Given these challenges, a leading global bank was looking for better ways to grow its customer base in the country for personal loans and credit cards. More specifically, the financial institution was seeking to:
- Conduct credit assessments for thin-file customers
- Establish more efficient systems to verify employment details
Introducing Real-Time Credit Verification
By partnering with DemystData, the bank was able to assess credit risk for potential customers by:
- Enabling access to new data sources for customer verification and underwriting, including both traditional (e.g.: business directory) and alternative sources, (e.g.: phone databases, search engines, geolocation data, and proprietary algorithms for email verification).
- Leveraging its platform to access and standardize data in-real time through a single integration point for purposes of verification.
What About Impact?
Working with our partners in-country as well as the financial institution, we were able to significantly enrich profiles of thin-file applicants. And by learning how to tap into alternative data in a compliant way, the bank was able to identify methods to increase its approval of thin-file customers by nearly 50% without taking on greater risk.
Additionally, by utilizing data to streamline credit verification, DemystData also helped automate the verification process, drastically accelerating time for credit approvals and reducing manual reviews.