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Insights and Expertise
Combat digital payments fraud and
shine as a nontraditional lender Spotlighting companies that promote
innovation in the payments industry
Lower costs for the lender
Every loan that isn’t repaid is expensive for the lender.
As I mentioned, the chance of a loan not being repaid
is mitigated by the higher interest rates nontraditional
lenders typically charge. But, even then, the company can
only mitigate so much. Too much fraud can lead to lower
profits, and it can put a business at risk.

Providers of nontraditional financing really shine, and
have much more stable businesses, when they do all that
By Chad Otar they can to mitigate fraud against their business.
Lending Valley
By decreasing the risk of defaults, many lenders find that
ue to the nature of nontraditional lending they can lower their interest rates. This can pull in more
methods, there aren’t quite as many checks as customers. More customers means more profit. But keep
a more traditional lender would have in place. in mind that lenders should never lose sight of the fact
D Obviously, nontraditional lending platforms that they still need to be cutting back on fraud, even when
still go to huge lengths to carry out the right checks, but their customer base rises. In fact, it becomes even more
fraud is often much more common in nontraditional lend- important.
ing sectors than with standard borrowing options. This is

why nontraditional lenders really need to work hard to More trustworthy (and more desirable) lenders Custom pages on our high-tra c website showcasing
combat fraud with digital payments. I’ll explain why it is Lenders that actively work to combat fraud in digital
necessary. your company’s unique message
payments appear much more trustworthy to their
Increased chance of repayment borrowers. This leads to a higher number of customers
and a boosted reputation in the business. A number of • Your own, customized News from the Wire that highlights
For many people, nontraditional financing is often a last nontraditional financing options have often been seen
resort. It's an option people turn to if they need money as somewhat disreputable, which is why companies are stories about your company
quickly, or if typical loans have been blocked off for them. doing all they can to reduce fraud and make the industry
Most of the time, nontraditional loans go off without a more stable and reputable. This means potential partners • Featured content: updated monthly, either by your in-house
hitch. However, this type of financing often has a lower should work only with lenders that can provide a good
repayment rate than standard loans (hence why the option for their customers. writers or by one of ours
interest rate is a little bit higher).
This also means that nontraditional lenders have
Lenders need to do everything that they can to boost the more options to work with other reputable companies, • Custom infographics and videos
chances that their money will be repaid. The more money contributing to an enhanced positive reputation, and

repaid, the more stable the lender is. While lenders will use more business. • Premier content placement in each issue of e Green Sheet
a variety of methods for this, combatting digital payment
fraud is the big one. Nontraditional financing providers should work to • And so much more...
combat fraud in digital payments as much as possible.
This means carrying out checks on the borrower, their This contributes to lower defaults, higher profits and more
payment options, etc. Strong fraud prevention can include customers. Financing providers that don’t have proper
device fingerprinting, behavioral biometrics, and digital checks in place rarely last in the business.
identity verification, all of which help detect synthetic
identities and other scams before funds are disbursed. Note: The following article was a reference source for
this article: https://trustfull.com/articles/15-types-of-common- Rick@greensheet.com
If a lender can carry out the right checks, the chances of fraud-attacks-in-digital-lending.
them becoming a victim of a non-repayment will go way
down. This can lead to a variety of benefits for both the Chad Otar is CEO of Lending Valley Inc. For information about the
lender and the borrower, which I’ll explain shortly. Also
bear in mind that cutting down on fraud makes the whole company, please visit www.lendingvalley.com. To reach Chad, send an 707-284-1693
industry safer, and it makes it easier for people to trust email to chad@lendingvalley.com.
a lending sector that hasn’t always garnered the best
reputation.
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