How Markaaz’s unique approach to verification helped a Fortune 500 bank increase its approval rates

A leading Fortune 500 bank used Markaaz’s superior small and medium-sized business (SMB) data to achieve 30% verification rates for its SMB business credit card applicants.

Highlights

  • A leading Fortune 500 bank partnered with Markaaz for assistance with increasing verification rates for small and medium-sized business (SMB) credit card applicants.
  • Markaaz’s solution achieved a 30% verification rate for businesses previously unidentified by the bank’s data providers.
  • Markaaz achieved a remarkable 21% officer match rate, enabling the bank to confirm the authenticity of applicant names as legitimate business officers. This data empowered the bank to meet more stringent verification criteria and approve only those businesses for which officer validation was possible. This rate surpassed the bank’s initial goal of 5% by 4x.

Background

A leading Fortune 500 bank was seeking a better solution to verify more SMB credit card candidates from its applicant pool. It receives a large number of applications each year and is unable to successfully verify approximately 20% using its current data provider, denying worthy candidates of necessary financial services and leaving significant revenue on the table.

The bank partnered with Markaaz on a data study to evaluate Markaaz’s business verification and person-to-business matching solutions. The goal was to see how many previously unidentified and rejected small businesses Markaaz could successfully verify compared to its current provider.

The challenges

1. Insufficient small business verification data

The bank found that its existing KYB verification service did not correctly find, match, and verify 20% of its SMB applicants. This limited the bank’s ability to approve and onboard qualified customers.

2. Rejecting qualified small businesses

Their verification data gaps led them to reject a large percentage of qualified candidates. This hurts small businesses that need access to capital to maintain their business’s health.

3. Missed revenue opportunities

In addition to denying small businesses essential services, the bank was leaving substantial revenue on the table. Each new small business customer represents $5,000 to $25,000 in lifetime value for the bank depending on their size. Their goal of a 5% match rate could potentially translate to millions of dollars in additional revenue.

The solution

Understanding that Markaaz created a new standard of SMB data that enables companies to better verify and monitor small business applicants and customers, the bank hoped the partnership presented a solution.

To test Markaaz’s verification solution, the bank submitted a batch of SMB business applicants that it rejected because of verification issues.

1. The Markaaz Directory

With superior data quality and more than 300 million listed businesses, the Markaaz Directory is the backbone of the verification process. The vast number of listings provides an extensive view of global SMBs, and higher-quality data leads to a higher number of verified matches.

2. Data analytics and proprietary matching

Using machine learning, proprietary matching, and advanced analytics, Markaaz’s algorithms meticulously sort through numerous global data sources, selecting the most accurate data elements and combining them to create a golden record.  This ensures Markaaz has the best, most accurate business record available.

3. Specialized SMB verification

Markaaz was specifically designed to cater to small businesses. The algorithms match against common SMB data issues, such as manual data errors, outdated records, and missing information to provide a thorough verification result.

4. Daily data refresh

Using machine learning, proprietary matching, and advanced analytics, Markaaz’s algorithms meticulously sort through numerous global data sources, selecting the most accurate data elements and combining them to create a golden record.  This ensures Markaaz has the best, most accurate business record available. 

5. Person-to-business (P2B) matching

Markaaz’s name matching capabilities aggregate multiple different versions of a business officer name, accounting for potential data entry errors and returning a more accurate result. This improves a company’s ability to cross-reference applicants with authorized business officers, reducing risk and potentially increasing approval rates.  

Improve your verification rates with Markaaz

The partnership between this Fortune 500 bank and Markaaz led to clear, significant improvements in business verification rates. Not only can Markaaz help lenders create an efficient approval process, but the improvements can lead to substantial revenue gains.

To learn more about how our business verification services can work for you, connect with us today.

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