In this guide we aim to unpack the standout features of Module 6 – where our solution can get access to a consumer’s credit report and do a full credit check.
Before we dive right into unpacking Module 6, let’s have a quick recap of what Gathr is:
What is Gathr?
Gathr is a KYC solution designed to streamline digital verification and onboarding processes. KYC in fintech involves processes and technologies used by regulated entities to verify customer identities and assess associated risks. Gathr addresses the challenge of application drop-off rates impacting capital costs by providing a digital onboarding solution. With over 1.2 million users processed, Gathr collaborates with major telcos and financial institutions in SA. It offers a versatile digital ecosystem for customer onboarding, identity verification, and information gathering, accommodating diverse needs with plug-and-play or API-based solutions.
There are two primary options for implementing the Gathr solution:
Why use Gathr?
Clients opt for Gathr for several reasons, each geared towards optimising their financial operations:
- Reduced human error & fraud: Gathr’s sophisticated verification process results in up to a 43% increase in completed applications, significantly reducing human error and fraudulent activities.
- Enhanced customer onboarding: By streamlining the onboarding process, Gathr enables businesses to onboard 40% more customers efficiently, thereby boosting their overall productivity.
- Overcoming fragmented technology: The integration of various legacy systems often leads to fragmented processes, causing frustration among stakeholders. Gathr unifies the verification process, leading to a more cohesive and efficient workflow.
- Access to raw data at scale: With Gathr, businesses gain access to crucial data, empowering them to make informed decisions, such as loan-scoring determinations and setting collection dates.
Gathr’s modularity is one of its standout features, enabling businesses to use any combination of modules and verifications based on their unique needs.
Overview of all our Gathr modules
Module 1: Assess transactional information to measure affordability
This module gives businesses a detailed look into affordability, expenses, and a clear understanding on an individual’s financials using USSD, Online Banking, or Manual Uploads to retrieve transactional information.
Module 2: Verify bank account for collections
This is the solution for you if you are wanting to verify that a particular applicant is the owner of the bank account they claim. The verification happens through a registered database i.e Transunion.
Module 3: Validate ID documents
This module verifies South Africa Citizens in seconds, automatically. We use state-of-the-art facial and document recognition technology to make sure your customers are who they say they are, at a fraction of the cost of a manual process.
Module 4: Validate & Verify
Match and verify a South African ID with Home Affairs, and check that the individual is alive. Verify whether a South African ID document or driver’s license against Home Affairs.
Module 5: Validate proof of address
This module reads a document address and verifies against application data. This search function allows us to read and utilise numerous documents in the address verification process
What are the steps for a seamless integration with Gathr?
What is Gathr Module 6 – credit bureau integration?
Module 6 of Gathr’s solution focuses on leveraging established, long-term partnerships with leading credit bureaus. This strategic collaboration allows the implementation of credit checks and report generation at a significantly reduced cost. The primary objective of this module is to efficiently run credit bureau checks and extract comprehensive credit reports for thorough examination for our clients.
Here are a couple of Module 6’s key features:
Cost efficiency
By capitalising on existing partnerships with reputable credit bureaus, Module 6 of Gathr facilitates credit checks and reports to clients at a fraction of the typical cost. This cost efficiency enhances the overall value proposition for businesses and organisations employing a KYC solution.
Direct credit bureau integration
The module seamlessly integrates with leading credit bureaus XDS and Transunion, ensuring access to accurate and up-to-date information. This integration enables the system to retrieve real-time data, providing a more dynamic and reliable assessment of a customer’s financial history.
Comprehensive analysis of a customer’s credit history
The credit checks performed through this module offer a detailed summary of an individual’s credit history. This encompasses a thorough examination of payment records associated with the customer’s credit accounts. The goal is to provide a comprehensive overview, aiding businesses in making informed decisions related to credit risk and customer reliability.
Data security and compliance
Given the sensitivity of financial information, the module places a strong emphasis on data security and compliance with relevant regulations. This ensures that the credit checks and reports are conducted in a secure and legally compliant manner, instilling trust and confidence in the KYC solution.
Module 6 optimises the process of obtaining credit checks and reports by leveraging long-term partnerships with leading credit bureaus. Through cost-effective measures, seamless integration, and a focus on comprehensive analysis, this module enhances the overall efficacy of KYC processes for businesses and organizations.
Module 6 snapshot:
Why should you run a credit check on your customers?
Any company seeking a more comprehensive understanding of its customers’ or users’ financial well-being and credit history should incorporate a credit check as an integral component of their KYC compliance.
Benefits of running a credit check on an individual
Risk assessment and financial stability
Running credit checks on customers is essential for businesses to conduct a thorough risk assessment and evaluate the financial stability of individuals. By examining creditworthiness, which includes an analysis of credit history and payment behaviour, companies can gain insights into the likelihood of customers defaulting on payments. Additionally, an assessment of income and existing debt levels provides a comprehensive understanding of a customer’s financial stability, helping businesses make informed decisions about credit approvals and terms.
Fraud prevention and compliance
Credit checks play a crucial role in fraud prevention and ensuring compliance with regulatory standards. Verifying the identity of customers through credit information is an effective measure to reduce the risk of fraudulent transactions. Moreover, in certain industries and regions, conducting credit checks is a regulatory requirement. Adhering to these regulations not only prevents legal issues and penalties but also contributes to maintaining the integrity of financial transactions and the overall business environment.
Informed decision-making
The data obtained from credit checks empowers businesses to make informed decisions. This data-driven approach guides companies in assessing the level of risk associated with a particular customer, allowing them to tailor credit approvals and terms accordingly. Informed decision-making based on credit information is instrumental in managing financial risks and ensuring that businesses engage with customers in a manner aligned with their creditworthiness.
Credit limits and collections planning
For businesses extending credit, credit checks assist in setting appropriate credit limits and planning effective collections strategies. By understanding a customer’s credit history, businesses can determine the suitable credit limits that align with the customer’s financial capacity. This not only ensures responsible credit management but also aids in developing strategies for effective collections, especially in cases of overdue payments.
Building trust and customer relationship management
Running credit checks contributes to building trust with lenders and fostering effective customer relationship management. Financial institutions rely on credit checks to evaluate loan applications, ensuring responsible lending decisions based on a customer’s creditworthiness. Additionally, knowledge of a customer’s creditworthiness allows businesses to tailor their offerings and payment terms, enhancing customer satisfaction and establishing long-term relationships built on transparency and mutual understanding.
What industries would make use of Module 6 typically?
While we’ll unpack some of the clients we’ve worked further down, there are a couple of other potential use cases of Module 6. These are some of the industries that might need to perform a credit check during their customer onboarding journey:
- Bond origination companies
- Vehicle financiers
- Business financiers
- HR platforms
Case studies for Module 6 – Credit Bureau integration
Recruiting:
JOBJACK
JOBJACK is a recruitment platform facilitating the connection between job seekers and employers. The founders identified a crucial need for a unified space where individuals seeking employment could effortlessly discover available positions.
JOBJACK stands as an online hub specifically designed for entry-level jobs, fostering connections between employers and pertinent job seekers. Through a commitment to technological advancement, they’ve developed a user-friendly platform enabling job seekers to register, craft their JOBJACK CVs, and seamlessly apply for positions in their locality. Likewise, employers can register on the JOBJACK platform, effortlessly posting their job openings and gaining access to a pool of qualified candidates.
A crucial part of the recruitment process, that was a valuable addition to their already sleek technology, was the integration of a consumer credit check. How this works, is that when a jobseeker starts the recruitment process with JOBJACK, the integration of Gathr’s Module 6 solution will allow JOBJACK’s clients to perform a credit check on the jobseeker.
Through this credit check they’ll be able to see the credit history and financial well-being of the jobseeker. JOBJACK’s clients will be able to perform this check at any point during the recruitment process, from shortlist to after an interview, depending on the needs of the client.
The integration of this technology elevates JOBJACK’s offering, making it even more valuable and seamless for companies throughout the hiring process.
Proptech:
Indlu
Indlu, a housing-focused initiative which vets a tenant for a lessor before signing a rental agreement. Indlu utilises several of our Gathr modules to enhance their application journey for housing solutions.
Operating within dynamic and underserved markets marked by a substantial housing backlog in South Africa and across the continent due to rapid urbanization, Indlu grapples with the emergence of informal settlements and backyard rental rooms as responses to the housing shortage. Despite generating substantial rental income, the lack of access to capital poses a hindrance to the development of these solutions.
To confront these challenges, Indlu strategically integrates Module 6 into their application process. This module, offering distinctive advantages particularly beneficial for financial institutions or regulated companies, becomes a pivotal component of their comprehensive approach.
Through the strategic use of Module 6, Indlu delves deeper into understanding their applicants’ credit history. This enables them to make more informed decisions regarding housing solutions and financing options. By scrutinising a consumer’s credit history, Indlu tailors their offerings to align with each applicant’s unique financial profile. This meticulous approach enhances the accuracy of their underwriting and risk assessment processes, making housing opportunities more accessible to those in need while also effectively mitigating financial risks.
Overview of how Indlu uses our Gathr’s modules:
