Credfin Advantage - Enhanced Dishonour Matching
Dec 17, 2021
Credfin offers a range of products to digital lenders, helping them quickly solve many common affordability assessment challenges. One of our unique solutions loved by our clients and taking the digital lending world by storm, is our Enhanced Dishonour Matching (EDM). Dishonour matching is integral for credit providers to make good lending decisions and perform accurate risk assessments around potential customers. Join us as we take a look at the behind the scenes of our enhanced dishonour matching which we believe, along with our clients, is among the best in the world.
If an expected repayment on a loan, form of credit, or any agreement with a service provider (gym membership etc), has declined due to insufficient funds, or the client has placed a stop on the repayment, the bank can charge a dishonour fee to both the client and the payment provider.
The payment is then reversed back into the client’s account, which is referred to as a Direct Debit Dishonour. A direct debit dishonour is the failure of the client to maintain sufficient funds to honour the payment and is important to identify the borrower’s willingness and ability to service repayments and likelihood of a payment dishonouring. Another benefit of accurate dishonour notifications is that it alerts a vendor of a customer’s potential financial stress, thus tailoring a more personalised lending experience.
Depending on the institution, a direct debit dishonour may appear on the transaction account without any additional information of the creditor repayment it belongs to, referred to as an unlabelled direct debit dishonour transaction. Without the correct labelling of the dishonour, credit providers may not detect that a direct debit dishonour has occurred for another credit provider, leading to an inaccurate risk assessment of the client.
At Credfin, we value the time of our clients and endeavour to make their experiences as seamless as possible. Our industry leading metrics enable our clients to grow their business through an understanding we provide data enhancement with bank data to ensure the accuracy of our metric results.
Our EDM is world class.
Labelling an unlabelled direct debit dishonour and categorising it with its relevant credit provider
Credfin’s innovative system is able to match the repayment and the dishonour and categorise it under the relevant provider. By labelling these dishonours we not only make the assessment process more seamless for the loan underwriters, but we also improve the accuracy of the financial data along with the data analytics thus improving the risk assessment of the applicant.
Labelling direct debit dishonour repayments processed on behalf of third party direct debit payment providers
With the same system as our first point, we attempt to label a direct debit dishonour even when coming from a third party direct debit payment provider. Usually, when a credit provider uses a third party direct debit payment provider, the credit provider’s name is not included. Again, this improves our metrics and any further assessments of the client.
Creating the direct debit and direct debit dishonour for bank institutions with missing financial data to provide a cohesive flow
If no direct debit dishonour or direct debit is recorded in the transactional records, and only the dishonour fee appears, we create the direct debit dishonour and direct debit for a more cohesive transactional record along with the associated amount if it is contained in the direct debit dishonour fee. We endeavour to go above and beyond to ensure improved accuracy is achieved.
What sets Credfin apart from our competitors is the key differences in how we approach dishonor matching and the systems we have built from the ground up that are unmatched. We use proprietary algorithms that can match vague and unidentifiable descriptors picking up important data, with extensive third party listings allowing us to match uncommon descriptors that would normally be missed. We have continuous checks for unmatched dishonours, tracking them down and adding them to our database constantly. We support even obscure banks, making sure you have the largest coverage of banks possible.
Enhanced Dishonour Matching is one of many advantages Credfin brings to the table, and you can find out for yourself just how much better our accurate dishonour system is by trying it today. To find out more or sign up your business for Credfin, visit our homepage and hit the let’s talk button now.