At least 6% of loan applications to digital lenders contain identity fraud. Since the advent of digital lending, the time it takes to get loans has reduced from days to sometimes seconds. Unfortunately, it has also made it easier for fraudsters to use stolen identities to take loans. This has given rise to the use of globally recognized methods such as liveness checks with facial recognition which can easily identify and verify customers instantly.
Systems that conduct only face-match checks are exposed to 300% more fraud compared to those that use liveness detection. Unfortunately, the systems and software development kits (SDKs) to make this happen are expensive and beyond the reach of lenders and fintechs in Africa and other developing economies; even with an understanding of the attendant risks of identity fraud.
Lendsqr and HyperVerge have partnered to offer lenders in Africa affordable protection
Lendsqr, being the LaaS dedicated to helping African lenders scale safely and successfully, is solving this problem by making liveness detection capabilities available at a cost unheard of but affordable enough to become a commodity. Without having to reinvent the wheel, they have announced their partnership with HyperVerge, one of the biggest global names in identity verification, to bring this to Nigerians and Africans.
HyperVerge is eradicating identity fraud, one face at a time
HyperVerge is an identity verification platform making use of AI technology to make it easy for businesses to verify users and identify and prevent fraud. HyperVerge is concerned with helping businesses keep friction to the user during onboarding as minimal as possible, while verifying their identity with maximum confidence. The HyperVerge AI models are engineered to ensure all compliance standards are met and are constantly advancing to recognize synthetic identities and address edge cases to stop evolving frauds . Additionally, their workflow is configurable and can easily be adapted to fit the needs of lenders and the checks they require.
The HyperVerge team has fine-tuned their verification process to ensure customers can get authenticated and verified within seconds. The team has seen a 50% reduction in customer drop-offs and saved businesses over $300 million in fraud losses. This speed and accuracy makes them uniquely positioned to serve the credit industry. Their goal is to democratize digital transactions by making them trusted, fast, easy and super cheap.
HyperVerge has successfully onboarded over 700 million customers across multiple countries, currently processing over 1 million KYCs daily. The platform offers instant verification for age validation, identity authentication, AML/KYC compliance and customer onboarding.
Lenders can now enjoy fraud-resistant lending solutions on Lendsqr
Lenders can now sign up for free on Lendsqr to get access to a robust fraud prevention system without breaking the bank. Lendsqr has already launched the offerings of this partnership with some of their customers.
For example, HyperVerge is protecting Sterling Bank’s retail digital lending designed to help as many as 100m Nigerian adults have access to credit when they need it. According to Olayinka Oni, the Chief Digital Officer of Sterling Bank, “Without liveness checks, the aspirations of Sterling to help Nigerians get easy access to credit would have been thwarted by identity fraudsters. With Lendsqr and HyperVerge, the Bank is assured of reaching every Nigerian, with fraudsters kept out of the loop”.