Finding Success in an Evolving Online Lending Marketplace

The competitive landscape of the online lending industry is constantly changing as new markets open, regulators refine rules, and technology allows new players to enter the market.
At the same time, the short term, small-dollar loan market is growing—making it lucrative for new entrants from both fintech, and more traditional financial institutions. A recent report from the Pew Charitable Trust found that twelve million Americans use short-term loans each year and American Banker reports that short-term installment lending revenue grew reached $6.5 billion in 2016.
Amid market changes and uncertainty, one thing remains sure: borrowers demand convenience. Because borrowers who are seeking short term loans need money quickly, speed is crucial. According to PwC, one-third of borrowers will choose the originator with the fastest funding times, as opposed to the one with the lowest APR.
Institutions that quickly process applications therefore have a competitive advantage. However, in order to comply with regulations and prevent fraud (36% of digital applicants are suspected to be fraudulent), online lenders need to find a way to marry that fast customer experience with world-class identity verification.
In order to do that, they need a fraud prevention solution that is flexible enough to keep up with the speed of the changing markets. Regulations, competition, technology, and fraud schemes will all continue to evolve, and working with companies that invest in innovation and technology to adapt to those changes is key to profitability for online lenders.
Online lenders of all types count on Ekata to identify legitimate leads and applicants, to speed them through the identity verification process. With a focus on reducing friction for good applicants, Identity Check API helps delivers real improvements in portfolio profitability by:
1. Improving speed and consumer experience: Reducing the cost per funded loan by increasing conversion rates
2. Reducing fraud losses: Identifying risky applicants and decreasing fraud losses.
3. Operational savings: Delivering cost savings by offering a 5-in-1 identity search solution that pulls information from more than 100 global data sources to validate; Name, Physical Address, Phone Number, Email and IP address.
Learn more about how Ekata Identity Check API helps online lending institutions compete by helping identify quality leads and speeding good consumers through the application process in order to increase conversion rates and portfolio profitability.

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