Embedded finance partner Aro has launched a service that is designed to broaden lenders’ offerings with “advanced” fraud prevention, “optimised” affordability checks and “superior” marketplace data.
The new service ‘Aro Precision’, which is independent of Aro’s lending marketplace, has been created in partnership with global identity and location company GBG.
GBG’s global identity network ‘GBG Trust’ will support the new service in providing ID and third-party checks.
Aro confirmed that the new solution will be available to lenders later this year, with the first proofs of concept currently being rolled out.
Aro has unveiled the new service at a time when 23 million underserved adults in the UK are faced with increasing affordability challenges, leading to growing demand for credit.
According to Aro, its Aro Precision data will “bolster” lenders’ confidence in affordability calculations which, in turn, will reduce the number of declined applications.
Andy Fisher, chief growth officer at Aro
Andrew Fisher, Aro’s chief growth officer, said that with many lenders increasingly hesitant to accept customers from direct channels, due to concerns around fraud and low intent to repay, Aro Precision addresses these challenges by providing “advanced” fraud prevention and “thorough” identity verification processes, “all integrated into a single API”.
“This service not only enhances the reliability of customer data, but also accelerates seamless onboarding for trustworthy customers, ultimately boosting conversion rates and ROI,” Fisher said.
GBG Trust uses cross-sector and industry identity intelligence to help lenders ensure they are onboarding “genuine” customers and is able to recognise first-party and third-party fraudsters.
Aro Precision will use GBG Trust’s “enhanced onboarding intelligence” to assign each customer a trust score, which categorises them as high, medium or low trust.
“As the battle to combat identity fraud intensifies, collaboration is crucial,” Laura Barrowcliff, global head of GBG Trust, added.
“By harnessing GBG Trust’s global identity network, which spans over 700 businesses across 24 sectors in more than 80 countries, Aro Precision will help lenders recognise great, good and bad customer prospects at onboarding and before transacting.
“We look forward to partnering with Aro to provide lenders with a strong first line of defence against identity fraud, while improving financial inclusion.”
Emma Steeley, chief executive officer of Aro, is speaking on a panel session titled ‘From Open Banking to embedded finance: Is it time to get off the fence?’, at Open Banking Expo UK & Europe 2024 on 15-16 October. Click here to find out more and get your ticket.
Further reading: TotallyMoney expands credit-matching capabilities with Aro partnership
