New Consortium to Enhance Responsible Lending Through Leveraging Collective Data Across the Industry
ID Analytics LLC announced the launch of the Online Lending Network, a new consortium formed to enhance responsible lending, help protect consumers and businesses, and address credit and fraud risks.
Founding members include Lending Club, Prosper Marketplace and Marlette Funding, as well as lenders representing online, marketplace, specialty finance and social lending. The network has achieved significant coverage of prime and sub-prime lending in only a few months, including over two-thirds of marketplace lending activity.
In today’s digital world, consumers are choosing online engagement and expecting immediate loans and funding. Meeting that expectation means online lenders face new challenges for loan origination and fulfillment. ID Analytics created a near real-time repository for online loan activity, enabling lenders to better assess a consumer’s intentions and actions.
Through the Online Lending Network, lenders report when a consumer requests an offer for a loan product, submits a loan application, or when a loan is funded. In return, the lender receives information on whether that consumer has either requested other loan offers or applied for loans elsewhere in the days, hours or minutes before. The near real-time nature of the response makes high-velocity fraud, like loan stacking, very difficult. It also has the potential to protect authentic consumers from overextending their credit capacity to facilitate responsible lending.
The Online Lending Network will also provide access to tools to evaluate credit, including the detection of synthetic identities, and detection of potential identity theft, as online lenders are a target for fraudsters using stolen identities.
Source: ID Analytics Press Release
