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Lending Briefing: Fraud and BNPL credit scores

  • Fraud is starting to become a bigger issue in financial services, with both banks and fintechs getting increasingly targeted by fraudsters.
  • The rising popularity of BNPL products is paving the way for new products and services from legacy players - Experian is launching a separate BNPL specific credit score this spring.

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Lending Briefing: Fraud and BNPL credit scores

The pandemic has changed a lot about the way we interact with financial services. If initially the quarantine forced us to stay at home and deal with our finances online or over the phone, now this is becoming a standard process. 

This shift towards the digital definitely has its benefits for us as consumers, but for the ones on the other end, it’s been a mixed bag. Traditional banks haven’t had the easiest journey converting to full-on digital banking, allowing fintechs to thrive by meeting this new demand for online money management and financing. 

But there’s a flip side to this digital-first approach. Fraud is becoming a problem in this new online milieu, only recently starting to be uncovered more adequately. And if fintechs enjoyed a sharp rise in popularity offering easy and seamless sign up processes, this also translated into them being a bigger target for fraudsters. 

Traditionally, when a person would walk into a bank branch to open an account, they would need multiple forms of identification. But online, customer onboarding has turned into a riskier process for banks and consumer fintechs, with fraudsters trying to take advantage of their systems.


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