TransUnion has partnered with London-based fintech company Tymit to help mitigate fraud risks whilst enabling friction-right experiences for consumers applying for Tymit’s pioneering instalment credit card.

As an innovator in the credit industry, Tymit offers an alternative to traditional credit cards and buy now, pay later offerings and launched the world’s first instalment credit card. However, the credit card service experienced an increase in fraudulent applications, with the most prevalent cases relating to identity theft and impersonation.Anchor[i]

Tymit immediately implemented additional controls, including selfie-based document verification, but found that whilst they saw the fraud rate decline, there was a level of additional friction for genuine customers. Tymit asked TransUnion to provide a fraud prevention solution that would deliver the right balance between the two priorities and was tailored to their unique circumstances.

“We're proud to have partnered with Tymit to help the organisation improve its fraud prevention and customer experience,” said Chad Reimers, general manager of fraud and ID at TransUnion in the UK. “In order to support Tymit, we’ve implemented bespoke layered fraud controls based on our award-winning[ii] TruValidate solution, which resulted in reduced friction for 87%i of credit applications without compromising on fraud detection rates.”

TransUnion developed a bespoke Digital Risk scorecard for Tymit that took into account a sample of 10,000 application records and identified strategies that could be used to reduce potential fraud without impacting the customer experience. After testing these strategies, Tymit identified that the most efficient suite for their needs included Device Risk, Mobile Risk, Email ID, Mobile ID and Real Time Fraud Alerts features.

As a result of the partnership with TransUnion, Tymit has seen an almost five-fold reduction in false positive rates (where genuine transactions may be flagged) and been able to identify incremental fraud cases that could have been missed with Tymit’s existing controls.

Bis Das, VP of risk at Tymit, added: “We are committed to providing our customers with a streamlined experience, financial peace of mind and full control over their spending and repayments. Working with TransUnion has allowed us to do this while also reducing fraud. We are now able to apply our document and selfie controls more effectively to different stages of a customer journey.”