New Account Scores address CFPB concerns while extending fraud management
Early Warning, a leader in fraud prevention and risk management, has enhanced its Real-Time Identity Chek® Service with the addition of New Account Scores. These predictive checking account applicant screening scores enable financial institutions to improve the access they offer consumers and expand their customer base while continuing to manage fraud. These scores were designed to directly address the Consumer Financial Protection Bureau (CFPB) concerns that too many consumers are denied access to financial services.
Early Warning’s New Account Scores predict in real time the likelihood of fraud or account mismanagement to reduce losses and improve account opening decisions:
- First-Party Fraud Scores are generated through sophisticated analytics, entity resolution and proprietary deposit data sources, delivering summarized attributes to help financial institutions identify which consumers present the highest probability to commit first party fraud; and
- Account Default Scores use contributed data to statistically predict the likelihood that a customer will default. A score, key factors and summarized attributes are returned as part of the Real-Time Identity Chek response and enable the financial institution to select the appropriate products and use privileges.
Early Warning’s Real-Time Identity Chek and New Account Scores are fueled by the company’s proprietary National Shared Database℠ Resource, the industry’s most comprehensive, accurate and current database of cross-institutional data.
“The FDIC has classified one in five households as underbanked, illustrating the CFPB’s concerns,” said Eric Woodward, Early Warning’s chief corporate development officer, Authentication. “Unlike applicant screening tools that primarily rely on credit performance, thus excluding many from receiving basic financial services, our predictive scores reflect an applicant’s entire deposit account history. In addition to giving financial institutions the opportunity to onboard more new checking account customers faster and with confidence, our New Account Scores strengthen CIP and KYC initiatives to better identify customers’ needs and the most appropriate services.”
Early Warning’s Real-Time Identity Chek Service operates in compliance with the Fair Credit Reporting Act (FCRA), providing consumers copies of their file disclosures and investigating disputes as needed. The solution detects invalid, inconsistent or unusual elements submitted by applicants, such as social security number, driver’s license format, address and phone number. Using collaborative intelligence, Real-Time Identity Chek Service allows financial institutions to immediately determine whether applicants are who they claim to be, whether they can do business with the applicant and if so, what account services and privileges can be offered.
About Early Warning
Early Warning provides risk management solutions to a diverse network of 2,300 financial institutions, government entities and payment companies, enabling businesses and consumers to transact securely and conveniently. Owned and governed by five of the largest banks in the U.S., Early Warning’s unique business model facilitates a data exchange system based on collaborative, shared intelligence. For more than 20 years, the company has worked with organizations of all sizes to advance collaborative risk management and fraud prevention. For more information please visit www.earlywarning.com.