Introducing Verdata

“Finally, we can leverage seller insights the same way we can for consumers. Verdata has the potential to completely change our industry.”
– President of a Verdata Partner Finance Company 

Verdata has built a proprietary data network that empowers the rapidly growing embedded retail lending sector—rent-/lease-to-own, buy-now-pay-later and point-of-sale—to assess and monitor the counterparty fraud, regulatory exposure, and customer service risk that has emerged as a threat to this new breed of retail lender.

The embedded retail lending sector 

Consumer purchase lending, in which lenders are embedded into the business processes and systems of third-party online and physical sellers, is a new consumer lending segment that is quickly growing into a sixth consumer lending vertical alongside auto, credit/retail card, mortgage, student, and unsecured personal loans. New lenders (such as Affirm, Klarna, and Square) and incumbents (such a Citizens Bank, Goldman Sachs and Paypal) alike offer this new type of purchase financing by partnering with millions of sellers around the world, leveraging their distributed networks for consumer engagement and loan distribution.

With more startups and incumbents continuing to launch embedded retail lending offerings, the sector is estimated to exceed $2.5 trillion globally by 2025.

Counterparty fraud, regulatory and service issues 

This form of lending relies heavily on good counterparty behavior. Undesirable behavior by physical sellers, e-commerce websites, non-financial websites, mobile applications, physicians, and contractors is responsible for over $2B billion in fraud losses alone across the industry in the US each year, about 1-1.5% of originations. In addition, poor counterparty behavior creates regulatory exposure that leads to unfriendly audits, lawsuits and millions of dollars in fines from regulatory bodies. Finally, select counterparties create an outsized number of complaints, weighting down finance companies’ internal resolution teams and harming their brand.

Before Verdata, there were no contributed data or aggregated public data solutions available to retail lenders for evaluating fraud, regulatory, and service behavior of a retail counterparty. Financing companies today have been left to cobble together off-the-shelf solutions from legacy financial services data providers, but report that even costly combinations of multiple solutions provide marginal insight and do not show past counterparty behavior or risk exposure.

Introducing Verdata

Verdata offers the industry’s first solution specifically designed to provide retail lenders with timely and historical cross industry insights into a seller’s previous and ongoing performance related to fraud, service, and regulatory behavior.

By combining proprietary seller performance data furnished to Verdata from a quickly growing network of retail finance lenders with publicly available information, consumer complaint records and third-party data, Verdata has created a unique and proprietary database and insight platform that delivers accurate and objective risk insights across the retail lending ecosystem. Similar to how Fintech lenders are leveraging broader data assets to assess consumers at scale across online and physical channels, Veradata’s database and insight platform enable retail lenders to evaluate and monitor sellers in an automated, scalable, and efficient manner. Access to its network data eliminates the need for a costly human review of current and potential seller partners, and regains lost revenue potential from missed seller partnering opportunities due to partner vetting constraints.

By leveraging Verdata’s services, finance companies can reduce fraud costs, improve consumer complaint management and resolutions to minimize regulatory complaints, and grow revenue by scaling their seller networks with confidence.

Verdata’s platform tools provide retail lenders with the necessary transparency and confidence required to build out and manage complex and rapidly growing distributed global networks of online and physical sellers.

Learn More

To learn more about Verdata’s service offerings and to join our partner network, reach out to us at info@verdata.com

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