Experian National Hunter, · Experian Public. Application Fraud Prevention. Hunter • Everyone...

©2012 Experian Limited. All rights reserved. Experian and the marks used herein are service marks or registered trademarks of Experian Limited. Other products and company names mentioned may be the trademarks of their respective owners. No part of this copyrighted work may be reproduced, modified, or distributed in any form or manner without prior written permission of Experian Limited.Experian Public.

Experian National Hunter,Enabling industry wide collaboration to tackle application frauds

18 December 2013

2©2012 Experian Limited. All rights reserved.Experian Public.

Agenda for the day

Experian introduction

National Hunter –India only Application inconsistency

services

A case study from existing Closed User Group

Q&A


Our businessSnapshot of Experian

Revenue: US$ 4.5 bn EBIT: US$ 1.2 bn Employees: 17,000 Offices in 44 countries Customer base in 80 countries Largest markets: US, Brazil, UK Corporate headquarters: Dublin

For the year ending 31 March 2012* At 10 May 2012

Leading global information services company,providing data and analytical tools to clients around the world


Our businessMarket leader with unparalleled global reach and range

More than double the size of nearest competitor, broader range

55% 67%*

33%

77%*

23%

80% 86%*

3,000

0

500

3,500

2,000

4,000

2,500

1,000

1,500

Glo

bal r

even

ue U

S$m

Other regionsNorth America

Experian Equifax

47%

53%

D&B Acxiom FICO

1,1301

6203

63%*37%

71%

1,7592

29%

4,4851

81%

1,9602

19%

86%*

14% 1,0242

21%

79%*

TransUnion

4,500

*US only. Source: Latest full year revenue, company SEC filings

1 Year ended 31 March 20122 Year ended 31 December 2011

3 Year ended 30 September 2011


Experian IndiaTightly integrated businesses

One Experian: Leveraging our global capability

Decision AnalyticsRetail credit risk management, multi-bureau, collections and fraud prevention productsMarketing ServicesCheetahMail – email marketingBusiness InformationInternational Reports

Credit ServicesFull Credit Bureau ServicesJoint venture with Axis Bank, Federal Bank, Indian Bank, Magna Finance, Punjab National Bank, Sundaram Finance and Union Bank of IndiaHeadquartered in Mumbai with offices in New Delhi, Kolkata, Chennai and BengaluruFirst CICRA Licence – Live Operations since August 2010

Cre

dit B

urea

u 49

% J

V10

0%

Subs

idia

ry

80 people across India

New Delhi

Mumbai

BengaluruChennai

Kolkata


Identify application inconsistencies & highlight red flags

Provides workflow & efficient referral management

Provides efficiencies along with MIS capability

Saves banks from accepting fraudulent customers

Protects banks from syndicated fraud

Saves customers from identity theft

Experian Hunter update- India’s only Application Inconsistency Services


Current update


Solution proposition

Minimise IT LoadEfficient Referral Management

MinimiseFraud Loss

ROIResults to date indicate that lenders can indeed achieve a break even within the 1st quarter of using Hunter service.


Experian Hunter™ Overview

Hunter operates on two levels – Local and National

Enables banks to check for internal inconsistencies

and past records within the bank across branches

LH has globally helped banks detect internal inconsistencies (within bank) which is a source for 54% of detected frauds

NH service enables banks to check for inconsistencies and past records not just within the bank but across banks which have signed up to be members of the Closed User Group

NH has globally helped banks detect shared inconsistencies (across banks) which is a source for 39% detected frauds

Local Hunter

National Hunter


Application fraud losses-need to minimize

Types of application fraud that can be identified by Hunter

Stealing personal details of another individual andadvising them to gain access to funds

A manufactured identity for purpose of accessing credit with no intention of paying

Network of individuals making multiple applications in order to gain significant sums of money

Hiding a previous address or a previously declined application

Inflating income or decreasing level of indebtedness

Omitted information

Identity theft & impersonation

False identity

Data manipulation

Organised fraud rings

10


Matched application inconsistencies

Same surname, Same previous address, Different DOB

Same mobile phone, different person and address

Same person,different previous address – may highlight hidden addresses with adverse bureau data

Same bank account, different person and address


Same product, > 4 applications within 2 months

Same address, > 4 applications within 4 months

Same e-mail, > 4 applications within 6 months

Same applicant, > 6 applications within 3 months

Velocity RulesApplication Data Patterns


Controlled Data Sharing

Lender A Lender B

MatchingRules

Person ID Number Product TypeLast NameFirst NameIncomeLiabilitiesDate of BirthOccupationAddress (lines)Postal CodeEmployerEmployer AddressPhone NumberFax NumberMobile Phone NumberBank Account NumberCredit Card NumberEmail AddressTerms of ProductNotes on Case

Only records involvedin rules are shared

Only data agreed to be shared is disclosed


Management Information (evolving best practice)3

Case Management21System

Checks applicationFor Anomalies

Checks Previous Decisions

and Known Fraud

Gathers Value Added Data

Hig

hlig

hts

Any

Red

Fla

gs

to U

sers

DetectionSuccess Rates

Productivity Of Users

Process Effectiveness

Fraud Decisions & Outcomes of Assessments

Are Recorded by User

Each User is Allocated A Prioritised Work

Queue

User Reviews &Assesses

Referrals in Queue

Fraud DetectionApplication Submitted

Address Linkswith

Sector Based Database

Manager

Hunter process overview


Analyse rules performance

false positives etc

Frauds found per portfolio and

values saved.

Process review and re-engineering

Hunter process overviewManagement Information (evolving best practice) 3Detection

Success RatesProductivity

Of UsersProcess

Effectiveness


Monthly fraud report

Hunter process overview

Management Information (evolving best practice) 3DetectionSuccess Rates

Productivity Of Users

Process Effectiveness


Minimise IT Load:Simple integration options

Applications’ Data DB

External Databases

Batch submission of credit applications.

Application details XML Data ExtractCustomer

application processing system

Web browser user interface for fraud referral processing

Hunter

Hunter rules pre-configured for India, but amendable by clients , flag suspicious applications for referral review

Property Database

Builder Database


National Hunter Database ….and growing

• SMEs• CV

• Home Loans

• Gold Loans

Credit Cards

Auto Loans

Motorbike Loans

Personal Loans


©2012 Experian Limited. All rights reserved.Experian Public. 19

System (rule engine) design and review

Creating workflow bench

Configuration of National Hunter access

D E S I G N & I M P L E M E N T A T I

O N

Loading historical data to Hunter

Installation of certificates for Hunter users

Interface development with Hunter

S E T U P O F I N F R A S T R U C T

U R E

Identifying data sources (Loan origination system)

Preparation of historical data in compatible format

Approval from stakeholders for data sharing

P R O J E C T I N I T I A T I O N

Training for end users by Experian Hunter expert trainer

Testing of solution with dummy cases

Access to live environment solution

P R O D U C T T R A I N I N G &

U A T

The hosted solution minimize IT load and enables a faster implementation

Hunter can be deployed within 4-5 weeks from project initiation

Key phases of Hunter implementation


Hunter benefit….

Access to other financial institution/NBFC’s fraud database near real time

Comprehensive and dynamics rules on fraud , referrals, inconsistencies & velocity

User friendly interface

Reduces manual redundancy and human errors with improvement in TAT

Provides access to integrated MIS

Creates and robust fraud detection cycle

High level efficiency and flexibility in rule running


Hunter Closed User Group – How it Works

Regular, Experian facilitated Advisory Board forums

Representatives from each participating organisation

Forum platform to:► Discuss current fraud trends and

case studies► Review system & Rule performance► Provide feedback to Experian on

Service► Receive information about global

trends and best practices► Network with peers in the industry


Application Fraud Prevention

Hunter

• Everyone across the country uses the same logic

• Ability to foster investigative culture across banks

Standardized

• Cases are set up based on scientific rules / scores rather than individual judgment

• 100% sampling

Scientific

• Continuous cycle of fraud prevention, detection, investigation & improvement leveraging past experience and data

Shared

After Hunter

Eyeballing & Sampling

Disbursement

Documentation Scrutiny / Field Check

Credit Decision

Fraud Decision


Hunter snapshot -2013-14

260572

319432

377279 380932 371152

441640 420320 420000

050000

100000150000200000250000300000350000400000450000500000

Apr'13 May'13 June'13 Jul'13 Aug'13 Sept'13 Oct'13 Nov'13

12.45

10.148.87

9.61 9.74 9.3 9.88.5

0

2

4

6

8

10

12

14


2.66

3.08

1.90 1.91 1.96

2.70 2.803.00

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50


Match rate Catch rateApplication processing

Match rate: Every new application triggered under NH for further investigation

Catch rate: Every application declined out of triggered application under NH

Potential savings from National Hunter is INR 2500+ Mn


Experian National Hunter – The Perfect Choice

• 14 countries around the world• Several hundred finance organizations

• 100+ lenders in UK in the National Hunter scheme • RoI doubled over the 17 yr period of using National Hunter

• The one and only Closed User Group for application fraud prevention in India

• 10 fold increase in Catch Rates• Loans worth INR 250 Cr as potential fraud since launch

• ZERO Additional Cost of Software & Hardware

• ~4 weeks from Agreement execution to Go-live


Welcome toExperian National Hunter

©2012 Experian Limited. All rights reserved. Experian and the marks used herein are service marks or registered trademarks of Experian Limited. Other products and company names mentioned may be the trademarks of their respective owners. No part of this copyrighted work may be reproduced, modified, or distributed in any form or manner without prior written permission of Experian Limited.Experian Public.

THANK YOU

Experian National Hunter, · Experian Public. Application Fraud Prevention. Hunter • Everyone...

Documents

Transcript of Experian National Hunter, · Experian Public. Application Fraud Prevention. Hunter • Everyone...