FairMoney’s Fraud Challenges
Consumer lending is booming in Nigeria, and few companies have been better able to capitalize on the trend than FairMoney. Following a $42M Series B funding round led by Tiger Global Management, the app-based bank now offers banking and loans to 1.3 million users across the country.
FairMoney has big plans for the future. Its expansion has already started in India, where it processed more than half a million loan applications, and the company plans to follow in the footsteps of other financial hubs by offering savings, stock trading, and crypto features.
That is, of course, if the team led by Juris Rieksts-Riekstins, Head of Risk at Fairmoney, can keep onboarding users safely, and with as little friction as possible. As Juris puts it:
Getting reliable data is the biggest challenge in our market. Financial inclusion is growing in Nigeria, but we still have to build risk models without banking data. We also need to be very precise with our blacklisting due to the high rate of fraudulent actors.
The key for Juris and his team was to leverage alternative data for FairMoney’s credit-led model. The company wanted to ensure the data points were reliable and easy to gather behind the scenes, without sacrificing efficiency and speed during its decision-making process.
A solution came in the form of two SEON modules, which FairMoney deploy as part of a multi-layered approach.
We overlay SEON’s digital and social lookup with device fingerprinting to get a good indication of whether the phone or tablet belongs to the actual client. We can instantly filter out obvious fraudsters with no digital or social presence, and we get better intelligence to automate our decision making.
Average loan decision time
Average daily loans
So how did FairMoney improve its processes by removing fraudsters from the equation?
Within a month of going live with SEON, the company has been able to offer a more streamlined, frictionless onboarding process delivering microloans up to $2000 in less than 5 minutes.
It’s no wonder a FairMoney client gets approved for a loan on average every 8 seconds. And best of all, Juris and his team can deliver results with complete peace of mind that they are only lending to the right people.
“SEON’s blacklisting system is very flexible and well-suited for our needs in Nigeria. We’re also happy to get one of the best customer support. The team is always interested to learn how they can make our lives easier”.
Head of Risk