XOR Announces a Permission-Based Small Business Credit and Fraud Risk Exchange

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Solves persistent fraud and credit challenges of microbusiness customers for large financial and communications companies

Mike Cook, CEO and Founder, XOR Exchange

Mike Cook, CEO and Founder, XOR Exchange

XOR’s Small Business Risk Exchange solves the most persistent fraud and credit challenge companies face: qualifying new micro-sized and other very small business customers.

XOR Data Exchange is launching a Small Business Risk Exchange to help companies identify fraud from fictitious businesses and unauthorized buyers, comply with growing Know Your Customer and Anti-Money Laundering requirements, and reduce credit risk losses associated with applications for new accounts or services.

XOR’s exchange is primarily focused on helping lenders and service providers enhance their small business decisioning for microbusinesses. These companies, which have fewer than five employees, make up more than 90 percent of U.S. small businesses and are the fastest-growing segment of the economy. Their volatility and small information footprint make them very difficult to authenticate and underwrite.

“XOR’s Small Business Risk Exchange solves the most persistent fraud and credit challenge companies face: qualifying new micro-sized and other very small business customers,” said Mike Cook, founder and CEO of XOR Data Exchange. “Our analysis supports the overwhelming customer sentiment that existing solution providers have very little data on these companies.”

XOR’s Small Business Risk Exchange is powered by a three-year historical analysis of account and performance data from across several P2P, small business online and credit card lenders, as well as wireless, wireline, satellite and internet providers. XOR’s proprietary semantic analysis of web-based information, robust linking technology and sophisticated entity resolution, combined with advanced machine-learning techniques and geo-location analytics disambiguates businesses with similar names and bolsters fraud and credit risk mitigation. XOR’s Small Business Risk Exchange solutions include:

Business Fraud + Attributes
Fraud prediction scores and variables that exchange members can use to create custom risk models.

Business Credit + Attributes
Credit worthiness scores and variables for predictive modeling in user environments.

Know Your Customer Compliance
Output validation variables and confidence ratings.

XOR’s permission-based data exchanges allow companies to participate in cross-industry fraud, credit, compliance and marketing efforts with full confidence in the transparency and fairness of the use of their data. Exchange members maintain ownership over their data, including who is allowed access and how much can be shared. In return for sharing their own data, exchange members get access to valuable second-party information to help better identify fraud and credit risks in new small business account openings.

XOR’s Small Business Risk Exchange provides direct API integration and will offer built-in availability with commonly-used application processing and customer acquisition systems. The Small Business Risk Exchange white paper will be available in late April, and the production pilot will be open to exchange members by early June. To learn more about the study or participation in the pilot, visit: http://xor.exchange/contact/.

About XOR Data Exchange
XOR builds permission-based data exchanges that help companies solve enduring business challenges while maintaining complete ownership and control over the data they contribute. XOR offers exchange members an unprecedented level of control over how their data may be used, who is allowed access, and how much can be shared. In return for sharing their own data, exchange members get access to otherwise unobtainable datasets to help better identify risk, reduce fraud and engage potential customers with thin or nonexistent credit histories. To learn more, visit http://www.XOR.exchange.

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Derek Sarley