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 secured a favorable financing rate with an online auto lender. Initially, she was surprised how easy the process was to apply for the loan digitally. When it came time to sign the papers, her lender wanted to send a mobile notary to her house to prove her identity in person. However, no one was available for two weeks. Waiting that long meant that 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 seemed unnecessary, so Kate arranged to finance the car through a lender affiliated with the dealership instead. The process was concluded in a few hours, but the interest rate was a bit higher. 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 to maximize consumer convenience and minimize friction. In this instance, the 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 relays her negative experience to friends and family for months to come.

From the auto lender’s perspective, they have a responsibility to prevent loan fraud to protect itself, the dealership, and the consumer. However, in a COVID-19 world, no auto lender—online or offline—wants to be reliant on an in-person process to verify an applicant’s identity. Online lenders should integrate automated document verification tools into their platform, and offline lenders need to consider digital technology.

The Socure Solution

In a digital-first environment, incorporating document verification into the auto lending application streamlines onboarding while also thwarting identity fraud. To address this growing need in the marketplace, Socure offers DocV, an omnichannel document verification service which quickly confirms the authenticity of more than 3,500 identification types from around the world. Whether the application originates online or from a mobile phone, DocV will guide the consumer to upload a photo of the front and back of their driver’s license or other government ID, and the machine learning-powered software will verify its authenticity with auto-approval rates as high as 99%.

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

An additional layer of trust is achieved with matching the photo on the applicant’s ID with a selfie in real time. Because a suitable selfie can be difficult to achieve, DocV has built-in 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 to match a counterfeit ID. Socure prevents that with 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 under 15 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

Document Verification (DocV) is available as a standalone product or as part of Socure ID+, a fully integrated identity fraud and compliance platform providing online auto lenders with a holistic solution for automated identity verification and fraud, together with Sigma Synthetic Fraud, Sigma Identity Fraud, and KYC. Individual document verification tools are disconnected from the overall IDV process. By integrating DocV with those Fraud modules, the auto lender gains 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 invested heavily in feature engineering and data source analysis, and used 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. Sigma Synthetic achieved AUCs up to 97.44% with a fraud capture rate as high as 90% in the top 3% of the riskiest 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 of these use cases, DocV can replace human interaction and cut onboarding to just a few minutes.

Win the Onboarding Challenge

DocV enables online auto lenders to digitize their document verification process with a proven solution. Backed by intelligence that links decisions and risk thresholds to other collected PII, including address, email, and device and phone risk, DocV delivers the most robust view of identity on the market with minimal friction. DocV produces 99% accuracy in spotting fake versus real IDs 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 automotive onboarding process, contact

Topics: ID+, Online Id Verification, Identity verification, DocV

Rhon Daguro

Rhon Daguro

Rhon Daguro is a tech-focused sales executive with decades of experience leading teams in designing, developing, and delivering security solutions, primarily in the identity and authentication space. He has brought to market mobile solutions for banking, entertainment, and other verticals. Rhon currently leads a large team for selling and deploying platforms for KYC and fraud prevention. He is also a successful entrepreneur in the user experience market, where he was a popular TED speaker.

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