How BHG Money Prevents $31m in Fraud Loss Each Month
BHG Money is the creator of one of the country's largest community bank loan and product networks. Since 2001, BHG has originated more than $11B in loan solutions through multiple brands that provide business, consumer, and SBA loans, credit cards, risk management services, and lending-as-a-service and point-of-sale financing technologies.
How BHG Money Saved $2M & Increased Operational Efficiency by 80%
BHG Money is the creator of one of the country's largest community bank loan and product networks. Since 2001, BHG has originated more than $11B in loan solutions through multiple brands that provide business, consumer, and SBA loans, credit cards, risk management services, and lending-as-a-service and point-of-sale financing technologies.
84%
Increase in processed loan applications year over year.
67%
Reduction in time to manual review flagged applications.
96%
Auto-approval rate for personal loan applications.
91%
Reduction in total fraud funded since implimentation.
Use Cases
- Loan Origination
- Underwriting
- Customer Onboarding
- Case Management
- Fort Lauderdale, FL
- Business & Consumer Loans
Challenge
Solution
BHG Money’s adoption of the Effectiv solution significantly improved its fraud management processes. The workflow and strategy editor within Effectiv enabled rapid customization changes, allowing BHG Money to proactively adjust fraud workflow strategies. Andrew Stone, SVP Fraud Management, touts that the seamless collaboration between the Effectiv and BHG Money teams facilitated the swift implementation of additional solutions, requested changes and resolutions to minor errors. According to Stone, “Effectiv’s platform prevents $31M in fraud each month.”
Stone had this to say about Effectiv’s orchestration platform. “We’ve been very impressed with the workflow and strategy editor within the Effectiv solution. There have been some instances where we’ve had to make some very rapid changes to strategies to head off bigger problems, some of which were completed in just five minutes.”
BHG Money leveraged Effectiv’s workflow and strategy editor to quickly modify strategies in response to emerging threats. The ability to make changes within minutes was a key advantage that positively impacted the company’s fraud management efforts.
“We’ve been very impressed with the workflow and strategy editor within the Effectiv solution. There have been some instances where we’ve had to make some very rapid changes to strategies to head off bigger problems, some of which were completed in just five minutes.”
- Andrew Stone, SVP Financial Management
The Effectiv team’s responsiveness and collaboration with BHG Money were exceptional. Requests for changes or corrections were addressed promptly, often exceeding expectations for turnaround time compared to other companies. This collaborative approach was critical in resolving issues and enhancing the solution’s effectiveness. Additionally, Stone stated, “The Effectiv team overall has worked very quickly to implement our requests. Effectiv resolved those to our satisfaction faster than most companies I’ve ever done business with as a partner.”
BHG Money recognized the potential for automated strategies to streamline its fraud management. Integration across systems would allow them to automate processes at various stages of the funnel, reducing net case volume and improving efficiency.
Result
BHG Money and the Effectiv team have formed a strong partnership, driven by collaboration and shared goals. BHG Money considers the Effectiv solution a significant investment, collaboratively contributing to the solution’s development, aiming to create a better, more valuable solution for both BHG Money and the broader industry.
When recommending Effectiv to others, BHG Money highlights several key points:
- Effectiv’s capability to manage and digitize new risks in the customer journey.
- Expert advice and support from the Effectiv team.
- Differentiating from competitors by providing a customizable and supportive solution tailored to unique problems.
BHG Money’s adoption of the Effectiv solution has resulted in notable improvements in its fraud management processes, a huge reduction in fraud and an impressive increase in process loans. The collaboration between the two teams has led to swift strategy adjustments, enhanced data interpretation, and potential cost savings. As BHG Money explores further integrations and enhancements, its partnership with Effectiv continues to drive innovation and efficiency in the financial services sector.
“We look forward to integrating even more Effectiv solutions into our fraud prevention orchestration in the months ahead,” said Stone.
