Technology solution will help lenders assess risk of their entire portfolio, as well as new applications they book for the remainder of the year
SAN DIEGO–(BUSINESS WIRE)–Point Predictive Inc., the San Diego-based company that provides machine learning solutions to lenders, announced today that they will provide their patented technology solution – SyntheticID Alert™ – to auto lenders at no charge for the rest of this year. The company is providing a free license to their software to help lenders scan and identify synthetic identities within their existing loan portfolios, as well as scan new applications that they receive for the remainder of 2020.
“In this changing environment, auto lenders will soon be facing enormous challenges in their collections departments, as well as managing rising rates of fraud in underwriting new applications,” stated Tim Grace, CEO of Point Predictive. “Managing synthetic identity fraud is a key issue that impacts lenders throughout their organizations. While lender collection departments are not currently repossessing cars due to delinquency or default, when repossessions resume, those cars that were sold to synthetic identities will often not be found. With SyntheticID Alert, we can proactively scan a lender’s entire portfolio and identify which borrowers are synthetic and which are real, so the lender understands their portfolio risk. And we know, from our decades of experience, that lenders will face a wave of new application fraud as the economy recovers. Not only will we scan lenders’ existing portfolios, but we will score each new application they receive so they can avoid funding any new loans to fictitious borrowers.”
SyntheticID Alert is powered by Point Predictive’s auto lending consortium and patented machine learning technology techniques. SyntheticID Alert scores each application or loan in the lender’s portfolio based on patterns of fraud that data scientists have identified across millions of historical automotive applications. The consortium aggregates over 4 billion risk attributes which includes application, performance and fraud information from over 30 lenders nationwide, spanning more than 104,000 franchise and independent auto dealers. More than 70 million applications have been scanned by the consortium to date; on a monthly basis, at least 1.5 million new auto applications are added to the consortium. This creates over 80 million new risk attributes each month to be used within the models to assess the likelihood of fraud or misrepresentation.
SyntheticID Alert was launched in 2018 and is already being used by auto lenders across the industry with compelling results. In head to head tests against bureau-based solutions, SyntheticID Alert detected up to 30% more synthetic identities while maintaining significantly lower false positive rates.
“SyntheticID Alert addresses an important component of lenders’ overall fraud risk losses, but it’s also only a fraction of their total loss exposure,” indicates Frank McKenna, Chief Fraud Strategist at Point Predictive. “Our data analysis shows that only 10% of losses are caused by synthetic borrowers, while the other 90% occurs due to Collateral, Income, Employment, and Straw Borrower fraud and misrepresentation. If we can help lenders take the first step in risk mitigation by addressing synthetic identity, our hope is that over time they will adopt our comprehensive Auto Fraud Manager solution to address 100% of their fraud and misrepresentation risk losses that usually hide in early payment defaults.”
Interested lenders will be able to access the SyntheticID Alert solution via Point Predictive’s cloud scoring service, which can handle both batch files as well as real-time calls through a dedicated API. Lenders will have the ability to securely upload their entire existing loan portfolio by providing batch files to be scored and returned for use for portfolio risk analysis, future collections and future recovery strategies. Lenders will also have the ability to submit and receive real-time or batch calls for all new applications prior to approving or funding a loan.
For auto lenders that are interested in more information or would like to use SyntheticID Alert, please contact firstname.lastname@example.org.
About Point Predictive Inc.
Point Predictive enables lenders to fund more loans simply with a unique combination of Artificial and Natural Intelligence [Ai+Ni] to power machine learning technology solutions. Point Predictive helps automotive, mortgage, retail and personal loan finance companies to identify the consumer applications with truthful and reliable information without the intense interrogation and verification of data caused by lower tech solutions currently in use. Highly regarded as the most trusted fraud and misrepresentation analytic solution providers, Point Predictive has transformed that trust to enable lenders to fund more loans to more consumers simply. Point Predictive uses big data powerfully orchestrated from millions of examples of true and falsified loan applications, billions of derived proprietary data elements, and scientifically selected 3rd party data sources to build powerful machine learning models with the added natural intelligence of human experience. Located in San Diego, California, more information about Point Predictive can be found at www.pointpredictive.com.