Summary

• 67% reduction in document collection
• Credibly has built machine learning models to verify business ownership, a key step to prevent fraud in business financing.
• Automation reduces both underwriting time and the number of documents required.

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Verifying ownership is an important part of the underwriting process and can help prevent fraudulent applications. In this step, underwriters confirm that the owner is truly the one applying for financing as well as that the person applying is the majority owner. 

Before automating this step, underwriting searched for third-party data to confirm ownership of a business. While effective, this process took time and elongated the financing process. If they could not verify the owner, the underwriting team would need to request documents from the business to prove ownership. This could further delay the financing process and add friction for the applicant.

Using Machine Learning to Replace Manual Searches

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Using the latest machine learning models, Credibly built an ownership model that was able to verify ownership through sources that were previously searched manually. The model matches the name of the applicant to information across multiple searches and verifies that the information found concerning the applicant indicates ownership.

Credibly also included a series of checks to ensure accuracy in this process. By combining information from multiple sources, they have improved the accuracy of the results as well. Once the model conducts the searches, it also produces a confidence score. A lower score, or a search where there was insufficient information provides notice to an underwriter that  they need to  collect relevant documents for review.

The model will also check if, potentially, there are additional owners. If it finds names of employees that have titles such as ‘Owner’ or ‘President’ and this information is verified by multiple sources, this information can be flagged to an underwriter to check the file.

Fewer Documents, Faster Funding

Credibly’s  automation has reduced the number of times an application requires proof of ownership documentation from the business owner by 67%. This means that two thirds of the files are now able to move forward with one fewer steps, leading to faster funding times and a better experience.

“Document-less” Future

Reducing the amount of documentation required, while maintaining accuracy, is one way that Credibly aims to reduce friction and delays in the financing process. Reducing the number of times ownership documents are required is just one way we are doing this. Continue reading about how we’re furthering this work through Dynamic Stipping.