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

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 checks itself and if it is not confident, an underwriter is alerted to conduct additional review and/or collect relevant documents. 

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.