Industry-first fraud & identity specific data enrichment builds on account profile verification offering
CHICAGO, Nov. 28, 2023 /PRNewswire-PRWeb/ -- Cash flow analytics platform EDGE has enhanced its fraud and identity offering with an initial release of risk attributes that complement its existing identity verification capabilities in the EdgeCheck product.
EDGE has curated a portfolio of data partners that aggregate consumer-permissioned data from banks, credit unions, and other financial institution. In addition to balances and transactions, this data includes the account holder's name and contact information as well as account and routing numbers.
"Verification of information from a consumer's credit application against this data sourced from the consumer's depositary institution has enabled our customers to significantly curtail fraud rates in their loan portfolios," said Brian Reshefsky, CEO of EDGE.
For its core credit risk analytics offering, EDGE enriches bank transaction data consisting of deposits, withdrawals, and descriptions to create attributes that predict the likelihood of loan repayment or default.
With its latest risk attributes, EDGE can now enrich transaction data with insights specific to identity and fraud risk: Is this a valid identity? Is this person who they claim to be? Does this person pose any potential risk for fraud?
"In what we believe is a first for the open banking ecosystem, EDGE has built an initial set of fraud attributes that extract insights from transaction data with specific relevance for fraud prevention," said John Tate, EDGE's Head of Data Science. "Early customers that have tested these attributes on top of our existing account verification trust signals are seeing incremental reduction in fraud rates with low false positives."
Just like EDGE's credit risk attributes, the new fraud attributes are delivered via API and can also be viewed in the company's customer portal. Within the EDGE portal, fraud analysts and application processing agents can review validation results and supporting evidence.
As customers detect more fraud with EDGE solutions and contribute confirmed fraud cases to EDGE's data repository, the company will be able to develop even more predictive attributes and fraud analytics calibrated on real-word loan outcomes in the same way that its credit risk analytics leverage the industry's largest data lake of coterminous credit decisions and bank data connections.
"As we continue building out an attributes library that improves fraud detection capabilities for EDGE and our customers, we'll see a flywheel effect with more data leading to more predictive attributes and even lower fraud rates for our customers," added Tate.
As a consumer reporting agency, EDGE is at the forefront of the cash flow underwriting movement to improve credit risk assessment and promote financial inclusion with automated insights into a consumer's income, spending, and balance behaviors. The company's enhanced fraud prevention offering furthers this important mission by reducing fraud rates and resulting losses for lenders which translates to lower borrowing costs that benefit unserved and underserved populations missing or misrepresented in traditional credit data.
"At its heart, open banking and EDGE's philosophy boil down to transparency and trust. Better data enables better lending decisions that benefit consumers and creditors alike," added Reshefsky. "In the same way that credit adjudication on a complete financial picture improves credit access for the tens of millions of Americans left behind by traditional risk assessment methods, our fraud solution delivers greater confidence and lower costs for lenders and borrowers to transact."
EDGE provides a consumer risk score based on bank account transactions. The platform was launched by the lenders, entrepreneurs, and data scientists who pioneered data-driven digital lending for Everyday Americans. EDGE delivers risk insights for use cases across the credit account lifecycle that have been performance-tested on real world lending decisions on over three billion bank transactions linked to over half a billion dollars in loans since 2017. For more information, visit http://www.edgescore.com and follow EDGE on LinkedIn at https://linkedin.com/company/edgescore.