Non-bank lender significantly reduces fraud with IDVerse technology

First-tier non-bank lender, Metro Finance specialises in prime commercial auto and equipment lending that delivers responsive credit and settlement services across Australia. The company provides a personalised and high-service approach to vehicle finance through its range of accredited brokers. While many financial institutions are focused on reducing their exposure to fraud losses, Metro Finance is looking for ways to increase efficiency and productivity.

The challenge

Download PDF version here – IDVerse x Metro Finance – Case Study

When customers are seeking a loan with Metro Finance they will apply via a broker. Metro Finance needed a standardised approach to do ID verification that could prevent fraud, mitigate risk, and accelerate the customer onboarding process.

They wanted a technology that could be used at a customer and vendor level, meaning it could be used to verify the identity of individual buyers from car dealerships, as well as individual sellers.

If a broker is certifying an ID, some of them will go out and meet the person face to face, while others can have very inconsistent practices. By introducing IDVerse’s digital identity verification solution, it would eliminate the variables and provide no room for human error when Metro proceeds to fund their customers loan.

It would also make user verification effortless and allow Metro Finance to scale its business without compliance and operational overheads.

The solution

With increased digitalisation and the growth of the online applications within the finance industry, brokers are increasingly moving away from meeting their clients face to face – posing the challenge of confirming the perspective client is who they say they are, rather than a nefarious actor or fraudster. IDVerse’s technology helps add certainty for both the broker and financier that they are dealing with the genuine customer.

When Metro Finance receives completed and approved loan documentation from a broker, it will begin the IDVerse verification process by sending the customer a link via a text message. The client will be prompted to scan an ID such as passport or driver license and then are guided to take a photo “selfie”, and confirm their details. Once this process is completed the loan is settled and the purchase is funded.

The results

Metro Finance’s Head of Risk and Compliance, Damir Prasovic, says IDVerse helps Metro Finance identify fraudulent transactions before they happen – saving an estimated $500,000 per year in losses/costs involved in recovering and reselling a car when fraud occurs. By using the technology Metro Finance has significantly reduced the occurrence of identity takeover and IDVerse provides the reassurance that the borrower is thoroughly vetted. This prevents the company from writing “questionable” loans.

Damir says the technology streamlines the loan application process, saving at least 5-7 minutes per application. The ID verification process takes less than one minute and eliminates the need for phone calls or meeting the client via video call or in person.

An API integration of the technology was used by Metro Finance 6-8 months before it was rolled out more broadly – a soft launched enabled them to selectively roll it out to high-risk applicants that they were vetting. This allowed everyone in the business and the broker network to become accustomed to the technology. Damir says, after some initial hesitancy both internally and externally, he has seen a strong uptake based on the convenience and ease of use.

Download PDF version here – IDVerse x Metro Finance – Case Study