Top Lender in Canada Achieves Success with Inverite’s Risk Score Automation

INDUSTRY: LENDING

ANNUAL APPLICATIONS: 180,000

ANNUAL ORIGINATIONS: $30 MILLION

This case study highlights how Inverite’s advanced risk-scoring technology can help financial institutions scale responsibly, improve operational efficiency, and maintain profitability while reducing risk exposure.

The Challenge

A leading lender in Canada faced significant challenges in balancing business growth with effective risk management in a competitive and fast-evolving marketplace. The company was grappling with high default rates on loans, which not only impacted profitability but also posed a long-term threat to their reputation. Their existing solutions were inadequate: slow, inaccurate, and reliant on manual reviews for risk assessments, preventing them from approving loans quickly and responsibly. Although the company considered several alternatives, they found existing tools lacked the sophistication needed, particularly in actionable risk-scoring capabilities.

To maintain growth without compromising customer experience or financial security, the lender needed a solution that could automate risk management and streamline operations effectively.

The Solution

The lender chose to partner with Inverite and implement its advanced Risk Score technology. Inverite was selected for its ability to provide precise risk scores tailored to the Canadian financial landscape. The platform seamlessly integrated with the lender’s existing systems, eliminating bottlenecks and enabling the business to scale operations more efficiently with reduced risk exposure.

Key Features of the Solution:

• Accurate Assessments: Minimal manual intervention, providing more reliable risk assessments.
• Streamlined Processes: Loan applications are processed more quickly while maintaining strong risk controls.
• Granular Insights: In-depth borrower behavior insights empower better decision-making.

This partnership empowered the lender to replace outdated and time-consuming processes with an automated AI-driven system, improving accuracy and enhancing their ability to achieve growth goals.

The Results

Just three months after deploying Inverite’s Risk Score, the payday lender experienced significant improvements:

• Default Rates:
• By Count: Reduced by 44%, from 4.6% to 2.6%, reducing financial exposure.
• By Amount: Decreased by 43%, from 3.3% to 1.8%, protecting the lender’s bottom line.
• Loan Application Volume:
• Total Loan Applications: Increased by 29%, growing from 35,967 to 46,263.
• Approved Loan Applications: Rose by 18%, adding 1,285 additional approved applications to the lender’s portfolio.
• Approval Efficiency:
• The approval percentage slightly decreased from 20.3% to 18.6%, reflecting a more rigorous and accurate risk evaluation process. Despite the slight drop, the total number of approved applications rose significantly, demonstrating the system’s ability to scale responsibly.

Why the Lender Chose Inverite

After evaluating several vendors, including Flinks, the lender chose Inverite for its comprehensive, scalable solution.

Reasons for Choosing Inverite:

• Industry Expertise: Inverite’s deep understanding of the Canadian lending market gave the lender confidence that their needs would be met.
• Superior Risk Scoring: The accuracy of Inverite’s Risk Score enabled more informed decisions and minimized defaults without sacrificing speed or customer satisfaction.
• Scalability: Inverite’s platform easily scaled to accommodate increasing application volumes without compromising performance.

A company representative shared their experience:

“What we liked most about Inverite’s solution is that ultimately, they gave us the ability to minimize risk but also confidently grow. Their deep expertise in the Canadian market, combined with industry-leading advanced capabilities in risk-scoring, set them apart from competitors such as Flinks.”

Looking Ahead

With Inverite’s Risk Score automation, the lender is well-positioned to tackle future challenges. The implementation of this solution has laid the groundwork for long-term, sustainable growth by leveraging advanced data insights and continuously improving their lending strategy while minimizing financial risk.

As the lender continues to grow, they will rely on Inverite’s innovative solutions to stay at the forefront of the industry, meeting the evolving needs of borrowers in Canada while maintaining responsible lending practices.