Simply assess customers better: How banks can prevent payment defaults at an early stage (1/2)

The touchpoints between banks and customers are constantly decreasing. According to the Bundesbank, German banks closed 2,600 branches in 2020 alone, further accelerating the dismantling of their branch networks. However, the lack of contact also increases the risk of default due to fraudulent activities. These include credit rating fraud and identity theft, e-mail and website phishing and the establishment of bogus companies. With the financial lifecycle platform of the fintech axytos, potential borrowers can be better assessed and fraud attempts reliably detected and suppressed. We would like to find out from banking expert and atriga Senior Key Account Manager Michael Fait how exactly the innovative technology platform helps financial institutions.

Fraud management and credit assessment in focus

In order to reliably protect themselves against payment defaults due to fraudulent activities and risky customers, banks need a well thought-out fraud management strategy. This includes permanent identity and creditworthiness checks as well as data- and forecast-based risk and receivables management. Michael Fait knows the special challenges: “Many institutions with their legacy systems often have no possibility to use the customer information available in the IT systems for professional data analysis. Especially when it comes to checks and decisions in real time in online banking. Also, the creditworthiness of the customer is usually only checked once at the beginning of the business relationship, but changes in the course of the customer lifecycle are no longer taken into account, which can certainly lead to unpleasant surprises such as loan defaults.”