Markaaz partnered with a leading alternative small business lender to improve match rates on previously unverified business applicants.
Highlights
- Achieved an 84% verification rate on previously declined small business applicants.
- Harnessed the power of a pre-validated database of over 300 million small business records
- Delivered a rapid verification time of just 2 seconds per business.
Background
This case study presents the results of a data test performed on a list of approximately 1,500 applications received by a prominent alternative lending provider (ALP) catering to small enterprises.
The primary aim of the examination was to assess the efficacy of our Business Verification and Person-to-Business (P2B) solutions. We implemented these solutions to showcase how Markaaz can optimize the precision of ALP’s business verification procedures, streamline application processing, and refine the overall efficiency of their application evaluation process through better Know Your Business (KYB) data.
The overarching goals included increasing the approval rate for small businesses, mitigating instances of erroneous results (false positives and negatives), and lowering customer attrition, thereby enhancing ALP’s overall operational framework. ALP receives an average of 15,000 applications a month, so increasing verification rates on the 10% of monthly unvalidated business applicants represents a substantial financial opportunity.
Verification tests were segmented into two categories based on the results of the previous verification process:
- Declined: These are businesses that failed to pass the verification process. Reasons can include missing information, unverifiable names or addresses, or association with known fraudulent entities.
- Incomplete: Some business records lack the necessary information required for verification and, in such cases, would be categorized as incomplete.
Challenges
Business records are prone to error and inconsistencies, making it difficult to verify business identities against validating data sources and confirm whether an entity is suitable for funding.
The following are some of the challenges that ALP experienced as a result of inefficient verification processes:
- A substantial amount (10-20%) of unvalidated cases required manual approval, straining resources and throttling scalability.
- Verifying large numbers of small to medium-sized businesses (SMBs) with high confidence was particularly difficult, further reducing efficiency.
- ALP risked losing customers due to delays caused by slow, manual verification procedures.
Solutions
Increased verification rates by using a superior business database that validates more small businesses and their officers.
By harnessing the power of the Markaaz Directory, ALP drastically decreased the need for manual approvals and allowed for a seamless onboarding customer experience.
How the Markaaz Directory helps:
The real power of our Business Verification solution comes from our unique business database. This pre-validated database houses over 300 million small business records from over 200 countries and is the most accurate source of small business information today. We achieve this high degree of accuracy through proprietary data-matching algorithms and advanced analytics that resolve systemic KYB data inconsistency challenges.
Key features of the Markaaz Directory:
- Specifically fine-tuned to verify small businesses, which are prone to data inaccuracies.
- Supports in-depth checks on all critical data: legal names, “doing business as” names (DBAs), former names, and addresses.
- Business records have been created by taking the most accurate and up-to-date data elements from thousands of sources, recognizing and eliminating inconsistencies using a proprietary data matching algorithm.
- Regularly updated from multiple public and premium sources.
Results
The results speak for themselves. In both categories, Markaaz’s verification process coupled with our comprehensive small business directory managed to verify 84% of ALP’s previously declined customers, providing ALP with a lucrative stream of potential new business with trustworthy and verified customers.
- Previously declined applications: Markaaz successfully verified an impressive 84% of previously unverified applicants. This high success rate demonstrates the accuracy and effectiveness of our matching algorithm in identifying legitimate businesses.
- Incomplete applications: Among the incomplete applications, Markaaz verified 71%. This demonstrates our solution’s effectiveness in identifying businesses even when application information is incomplete, enhancing ALP’s ability to make accurate funding decisions without having to manually collect additional information.
Optimize your business verification processes today
The results of this data test are clear: Markaaz’s business identity verification solution can provide significant benefits to companies that struggle to efficiently onboard customers.
With our P2B verification solution, you can rapidly establish connections between applicants and their corresponding businesses, gaining a deeper understanding of applicants’ qualifications and roles within their respective organizations. With this information, you can make data-driven funding decisions while reducing your risk of exposure to fraud.
When used together, our Business Verification and P2B services are ideal for organizations seeking to optimize their onboarding and small business funding processes. To learn more about how our solutions can help you maximize business verification, speak to a Markaaz representative today.
