Aro Launches Aro Precision to Combat Fraud and Boost
UK Credit Market
Aro, a UK-based embedded finance partner, has introduced Aro Precision, a cutting-edge solution aimed at enhancing fraud prevention and expanding the credit market. Designed to meet the needs of UK lenders, this new solution promises to improve affordability checks, strengthen lender partnerships, and offer enhanced marketplace data.
Tackling Fraud and Expanding Credit Opportunities
Aro Precision focuses on mitigating digital fraud through advanced identity and third-party checks. Unlike Aro’s traditional marketplace offerings, this independent solution helps lenders build confidence in their affordability calculations. By ensuring accurate assessments, Aro Precision reduces the number of declined applications, allowing more consumers to access financial opportunities. Additionally, lenders can reuse this verified data at later stages in the customer journey, streamlining the process and boosting efficiency.
Addressing UK Credit Market Challenges
The UK credit market is grappling with increasing demand for credit amid rising affordability issues, particularly for underserved individuals. Mortgage interest rate fluctuations and frequent stress tests have led to more affordability declines, causing delays and increasing operational costs for lenders. Recognizing this challenge, Aro Precision seeks to optimize mortgage affordability and payment stability, providing lenders with actionable insights that reduce manual processes and operational burdens.
Fraud Prevention and Identity Verification in One Solution
Aro Precision offers a comprehensive fraud prevention system by integrating ID verification and fraud detection into a single API. Lenders now have a streamlined solution to assess customer data with confidence. This reduces fraud risks and accelerates onboarding processes for trustworthy customers, ultimately boosting conversion rates and return on investment (ROI).
According to Aro representatives, lenders are often hesitant to accept customers from direct channels due to fraud concerns and low repayment intent. Aro Precision addresses these pain points, enhancing reliability and security in customer data processing.
A Collaborative Effort with GBG for Enhanced Identity Verification
To power this solution, Aro has partnered with GBG, a leading provider of identity and location solutions. Through GBG’s global identity network, Aro Precision assigns a Trust Score (ranging from 0 to 1000) to each customer, categorizing them as high, medium, or low trust. This partnership brings enhanced inclusivity by providing deeper intelligence at the onboarding stage.
Looking Ahead
Aro Precision is set to launch later in 2024, with the first Proof of Concept (POC) trials already in progress. The solution aims to elevate fraud prevention and credit assessment standards, reinforcing collaboration between key financial industry players.