By Mikhail Marchenko
Digital lending ecosystem is rapidly growing thanks to increased financial inclusion, smartphone penetration and easy access to the internet. However, with the growth comes a lot of security systems challenges to fintechs.
Good news is that, JuicyScore, a tech firm that offers an array of anti-fraud solutions and risk assessment tools that help banks and fintech businesses deal with application fraud, account takeover, multi-accounting, and transaction fraud, has unveiled an app that will help companies, especially offline digital players, cope with the many risks.
Through the tech company’s app labeled “JS App”, any offline business is capable of creating customer device scoring, including customer assessment supplement through conventional offline sources.
JS application is also helpful for companies that do not have their own IT infrastructure, as well as for businesses creating a minimum viable product (MVP) and would like to save money on launching it – an MVP is a version of a product with just enough features to be usable by early customers who would then provide feedback for future product development.
The JuicyScore backed app may be effectively used in any business with offline offices, branches, or stores and where potential customer underwriting or risk assessment is required. It will help offline businesses in tackling problems related to risk assessment of customers with “thin credit history”, for example, young people, retired people, and residents of remote settlements.
Imagine a situation where a person enters the bank or micro lender’s office, which is located not far from his/her home, or office, in order to open an account, a card or to get a loan. We can’t help but agree that this is rather a usual scenario because many people are comfortable talking to a real person, who can help to solve all the issues at once (such situations also may occur, speaking about certain categories of borrowers, for example, elderly people).
Another example refers to the Point of Sale (POS), where a consumer purchases and pays for goods and services or any offline store, telecom, or electronics store. Such people initially do not have the goal of obtaining a financial product but may decide to buy something if a POS loan, credit card, or any Buy Now, Pay Later product is available. This also may be a person who wants to buy a car or get an insurance certificate.
In all the above cases, the service provider collects a potential customer’s data, and does verification and underwriting, using device risk assessment only as a part of the verification process. But we believe that device data and a strong digital profile can play a more important role and give much more value in a decision-making process.
Moreover, non-personal data will never lead to the problems connected to data breaches – such data is simply of no use to any fraudster, but can improve the decision-making model significantly.
In order to start, a borrower should download the JS application either from Apple Store or Google Play – it is available for iOS and Android (soon will be available on Huawei AppGallery).
When the application is downloaded a user is able to become familiar with the security and data processing policy, grant access to the camera (only when using an app) in order to scan a QR code, and grant access to geolocation.
At the same time, one can see the logo of the financial company where he/she is applying for a financial service since the JS App – Device Risk Analytics is a white label (some sort of partnership when a company can provide a service to its customers on behalf of its brand using its partner company’s product.
Device risk assessment is seamless as the process takes no more than 30 seconds, practically does not affect the conversion and at the same time significantly improves the quality of the decision made on the side of the financial institution. Moreover, while most similar solutions use personal data, JS App – Device Risk Analytics solution does not request access to personal data, passports, or other identity documents.
An offline business can significantly improve its risk assessment models, especially if it is relevant for Kenya since there is a lack of data because the Central Bank of Kenya (CBK) stopped credit-only institution from sharing data with Credit Reference Bureaus (CRB) until they receive approval or a license from CBK.
Also, the scope of data sent to CRB is limited. For example, they do not receive data on income or financial statements. So, with JS App – Device Risk Analytic, it becomes much easier to build a complete digital profile for each client, and not just for those who come to the online channel.
Another opportunity for an offline business is the ability to set up communication with customers more accurately by analyzing those who have previously visited the site, and linking the entire set of devices to each client profile. Also, there is no need to create your own infrastructure for device evaluation and fingerprinting – JuicyScore provides customers with a turnkey solution, support, and regular (monthly) product updates.
Writer is co-founder of JuicyScore
