A first of its kind in India, Luminate Exchange is a risk management exchange that will enable fintech lenders to mitigate fraud real-time, using the power of big data
Equifax Credit Information Services Private Limited (ECIS), a leading credit bureau, has launched ‘Luminate Exchange’ in collaboration with FinTech Association for Consumer Empowerment (FACE), a not-for-profit industry association founded to drive ethical lending practices in India.
This state-of-the-art fraud risk management Exchange will empower lenders to prevent fraud at the point of entry itself, giving them greater confidence while processing loan applications. As part of this collaboration, FACE members will now be able to integrate this cloud-based platform to identify any potential fraudulent users in real-time. FACE currently has 15 members who are serving over 19000 pin codes in India, while protecting over 90 Lakhs+ consumers from illicit lending practices, and the fintech ecosystem as a whole.
Equifax has a globally established fraud risk management exchange which is currently being used by major clients across diverse industry segments worldwide. This Exchange is now being made available in India, starting with the FACE collaboration. Due to straight-through processes, digital lenders need protection from high-velocity fraud. Luminate Exchange plays a crucial role by fostering real-time insights into fraud patterns to help Exchange members detect fraud that may otherwise have gone undetected. This is done through data sharing within the Exchange and through insights that Equifax provides.
Designed to help at both an organizational as well as an industry level, Luminate Exchange is highly configurable depending on the needs of the lender. Hosted on the cloud, the Exchange poses twin benefits of dynamic scalability and being always on, enabling lenders can seamlessly integrate the solution with their platform and start inquiring on this Exchange. This allows for significant bandwidth savings for clients as they do not need to provide resources for development or hosting activities.
Sharing his thoughts on the launch of the Exchange, Nanaiah Kalengada, Managing Director – Equifax Credit Information Services Pvt. Ltd. said, “With an increasing focus on digital transformation, businesses are treading the fine balance between fraud prevention and customer experience. Post-pandemic times have put additional stress on lenders as fraud instances are seeming to be on rise. During such challenging times, solutions like the Luminate Exchange will help bring speed and confidence to the due diligence processes and help digital lenders secure their businesses. The behavioural shift towards digital lending is here to stay for the entire lending ecosystem and it is our constant endeavour to aid healthy portfolio growth by blending our global best practices with innovative products and solutions. We are happy to partner with FACE, whose members have been the pioneers in the Indian fintech industry, to bring this industry-first solution to India.”
Adding to this, Mr. Akshay Mehrotra, Co-Founder & CEO at EarlySalary and Member at FACE said, “The past year has been unprecedented for the digital lending industry. This exponential rise in demand for digital credit has accelerated the need for a smart and real-time fraud risk management system that cannot just identify, but prevent fraudulent activities. This partnership reiterates our commitment towards making the digital lending ecosystem far more conducive for lenders to operate in, and for consumers to place their trust in while trying to address their credit needs. With an industry-first solution like Luminate Exchange, digital lenders can work towards increasing the financial inclusion fold of this country by creating access to credit in the most seamless and efficient manner.”
The Fintech Association for Consumer Empowerment (FACE) is a not-for-profit industry association formed in September 2020 by some of the leading Fintech companies in India with the objective to drive ethical lending practices among the Indian Fintech sector and establish thought leadership in consumer finance. FACE strives to engage with the RBI, Ministry of Finance, other Government and industry bodies, policymakers to ensure strong focus on fair and responsible lending practices for Consumer Finance in India.
Source: Business Wire India