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After an accident, Kate Maddox needed to replace her badly damaged car in a hurry. She found exactly what she wanted at a local dealership and quickly was approved for a loan with favorable financing through an online auto lender. However, when it came time to sign the papers, her lender required that she prove her identity in person by sending a mobile notary to her house, but no one was available for weeks.

Waiting that long meant Kate would have to find another way to get to her job as a critical care nurse at a hospital 25 miles away. The added expense and inconvenience caused an unnecessary burden, so Kate arranged to finance the car through a lender affiliated with the dealership instead. The process concluded in a few hours but at a higher interest rate. The experience left Kate feeling as though online auto lending practices are not very consumer-friendly.

The Holy Grail in digital new account onboarding is maximizing consumer convenience while minimizing friction. In the instance of Kate Maddox, the frustration caused by friction so outweighed ease of use that the lender lost a customer. Then, there’s the reputational damage the online lender will suffer as Kate shares her negative experience with friends and family for months to come.

From the auto lender’s perspective, there is a responsibility to prevent loan fraud to protect itself, the dealership, and the consumer. However, in this digital-first world, no auto lender wants to be reliant on an in-person process to verify an applicant’s identity. Online lenders, therefore, need to integrate automated identity document verification tools into their platform.

Socure Predictive DocV: Streamline Onboarding from Days to Minutes

Incorporating ID verification into the online auto lending application process streamlines onboarding while also thwarting identity fraud and enhancing KYC/AML compliance. To address this growing need in the marketplace, Socure offers Predictive DocV, an omnichannel ID document verification service which quickly confirms the authenticity of thousands of global ID document types.

Whether the application originates online or from a mobile phone, DocV will guide the consumer to upload an image of the front and back of their driver’s license or other government-issued ID, and the machine learning-powered software will verify its authenticity with auto-decisioning rates as high as 98%.

When DocV is applied at the beginning of the onboarding process, the data extracted from the ID’s machine readable zone (MRZ) can be used to autofill the application form to prevent typographical errors and speed up the process.

An additional layer of trust is achieved by matching the photo on the applicant’s ID with a selfie in real time. Because a suitable selfie can be difficult to attain, DocV employs computer vision-powered image capture tools to guide the applicant to adjust for poor lighting or focus and then automatically snaps the shutter when the quality standards are met.

Fraudsters often use a photo substitute or 3D mask to match a counterfeit ID. DocV counters that by employing NIST PAD L2-certified liveness detection algorithms to ensure the applicant is physically present and then compares the selfie to the photo on the ID to verify a true biometric match in seconds.

DocV addresses multiple delivery channels accessible via an API call or web and mobile SDKs:

  • Native iOS or Android native app
  • Mobile phone browser
  • Desktop browser with handoff to mobile browser using SMS, QR code, or email
  • Call center console with handoff to a mobile browser via SMS or email

DocV is part of Socure’s identity verification platform, Socure ID+, the new standard for digital identity verification, delivering real-time, predictive analytics for the most accurate and comprehensive identity verification and fraud prediction—available through a single API. It provides online auto lenders with a holistic platform for automated identity verification and loan origination fraud detection, together with Sigma Synthetic FraudSigma Identity Fraud, and KYC solution.

Individual ID document verification tools are disconnected from the overall identity verification (IDV) process. By integrating DocV with these IDV modules, auto lenders gain an instant 360-degree view of the risk associated with any consumer.

In particular, synthetic identity fraud has become another critical issue for online auto lenders. To deliver Sigma Synthetic Fraud, Socure continuously invests heavily in feature engineering and data source analysis, and uses both supervised and unsupervised machine learning models to derive a common definition of synthetic identity fraud. Socure leveraged this definition to develop classification models that have proven effective in combating this elusive type of fraud. Socure’s Sigma Synthetic achieved AUCs up to 97.3% with a fraud capture rate as high as 90% in the riskiest 3% of users.

More Automotive Verticals: Test Drives, Auto Rental, and Car Sharing

Within the automotive industry at large, there are additional applications for DocV that will increase conversion rates with fast, accurate risk decisions to support quick onboarding. For example:

  • Test Drives – Dealerships want a contactless solution to enable consumers to preverify their identities to schedule and take test drives without requiring a salesperson to vet them and go along.
  • Auto Rental – Car rental agencies also seek a contactless way to serve clientele where a customer can select a car and drive off the lot without having to be verified by an agent.
  • Car Sharing – When signing up to join a car sharing service, drivers must often wait a week or more after submitting identity documentation to be approved to utilize a vehicle.

In all these use cases, DocV can replace human interaction and cut the time to onboard new customers to just a few minutes.

Win the Onboarding Challenge

DocV enables online auto lenders to digitize their ID document verification process with a proven solution. Backed by intelligence that links decisions and risk thresholds to other collected PII, including address, email, phone, and device risk, DocV delivers the most robust view of identity on the market with minimal friction.

DocV produces 96% accuracy in liveness detection and selfie-to ID photo matching with no human interaction because it is fully automated, so it allows the lender to achieve significant operational cost savings. Finally, clients never have to worry about outgrowing DocV’s capabilities as it is infinitely scalable and adapts as their business grows.

For more information on how Socure can transform your onboarding process and to see DocV in action, schedule a demo today.

Posted by

Brenda Gilpatrick

Brenda Gilpatrick

Brenda Gilpatrick is senior director of product marketing at Socure. She helps to lead go-to-market strategies for Predictive DocV. Previously, she was an independent consultant in the payments and fintech industry, working with companies of all sizes on marketing, technology, operations, and business development initiatives.