'Fraud prevention, AI, and compliance in SMB financing' webinar recap
Hosted by Colin Terry, COO and EVP of Product at LoanPro, Jonathan Awad, co-founder and CEO of Baselayer, and Ashwin Chandrasekaran, Senior Director of Product Management at Forward Financing, ‘Fraud prevention, AI, and compliance in SMB financing’ delves into the complexities of fraud prevention, offering insights on how financial organizations can strengthen their efforts with next-gen technology to mitigate risks while ensuring compliance.
Here are some of the key learnings from the webinar:
- Detecting and preventing fraud is challenging, particularly due to regulatory constraints like fair lending practices, which complicate the ability to deny applications based on specific attributes. A key strategy to combat this is ensuring access to clean, well-managed data, both internal and from third-party sources, to effectively detect fraud. Businesses must prioritize data management and system integration to maintain transparency and reduce fraud risk, as many lenders/funders are upgrading their core systems to improve data access.
- As financial organizations scale, they are moving from manual fraud detection processes to more automated systems. The focus is on reducing manual overhead, leveraging AI and sophisticated data from vendors to improve decision-making, increase efficiency, and reduce fraud risk, while ensuring better-quality submissions for underwriting.
- There has been a dramatic increase in new business formations in the U.S., with nearly double the number of businesses being launched each year compared to a decade ago. This surge, now reaching up to 500,000 new businesses per month, has created significant challenges in managing fraud. To keep pace, AI is becoming crucial in processing vast amounts of data and detecting fraud, particularly in verifying business ownership and spotting emerging fraudulent patterns. However, a pragmatic approach is necessary, balancing AI's speed and efficiency with human expertise and regulatory compliance to ensure accuracy and avoid risks.
Watch the full webinar for more insights:
Connect with us to learn more about how LoanPro can strengthen your fraud prevention efforts and help you stay ahead of regulatory changes.
