AI-Enabled Fraud Detection for a Proptech Company
A leading Proptech company collaborated with Allion to address a significant challenge in its lease application process. The company faced a situation where many incoming applications exhibited subtle document manipulations. Given the limitations of existing manual inspection methods, this presented both a growth opportunity and a strategic imperative.
The Challenge
Enhancing the discernment of authenticity in lease applications became a primary challenge for the Proptech company, with 35% of documents showing subtle alterations. While a testament to the company's popularity, this raised potential risks to financial stability and operational efficiency. Though robust, the existing manual inspection methods fell short in the face of sophisticated document edits, with outcomes impacting Net Operating Income (NOI). However, in partnership with Allion, the company viewed this challenge as an opportunity to innovate and reinforce its commitment to operational excellence.
Solution in Collaboration with Allion
Recognizing the need for a progressive approach, the Proptech company, collaborating with Allion, embarked on a transformative journey. The aim was not only to address the challenge but also to fortify the company's market position. The solution comprised several strategic components:
1. Document Pre-processing
Allion together with the client collaborated in designing a meticulous document pre-processing phase, employing cutting-edge technologies to extract essential text and images from submitted files. This laid the groundwork for subsequent in-depth analysis, ensuring a comprehensive examination of the documents' textual and visual elements.
2. NLP-Based Analysis
Advanced Natural Language Processing (NLP) algorithms were employed to address the intricacies of textual content in vital documents. The NLP model underwent rigorous training to detect anomalies, inconsistencies, and discrepancies within the text, providing a nuanced understanding of potential red flags in the documents.
3. Computer Vision for Image Analysis
Joint proficiency in Computer Vision techniques was crucial in targeting documents with images or scanned pages. The system identified visual evidence of manipulation through intricate analysis, adding a robust dimension to the fraud detection process.
4. ID Verification with Facial Recognition
Allion seamlessly integrated advanced facial recognition technology to enhance identity verification processes. This involved cross-referencing the applicant's face with their submitted identification documents, adding an additional layer of authenticity validation.
5. API Integration for Flexibility
The system's design incorporated the flexibility of both embedded and white-label options. This strategic decision facilitated seamless integration into existing workflows and allowed customization to meet specific client requirements. Incorporating Application Programming Interfaces (APIs) ensured the solution could adapt to different applications' unique contexts and structures, providing a versatile and user-friendly implementation.
Impact:
1. Automation and Productivity Gain
Implementing the solution brought about an 80% reduction in manual touchpoints, streamlining operations and resulting in tangible time and resource savings. The automated fraud detection process significantly expedited lease application processing, increasing operational efficiency.
2. Enhanced Fraud Identification
The solution significantly enhanced the accuracy of the fraud detection process, reaching an impressive 95%. This translated to identifying over 50% more fraudulent applications, providing a robust defense against potential financial threats.
3. Reduced Exposure to Delinquency and Evictions
The fortified fraud detection system was pivotal in reducing the company's exposure to delinquency and evictions by 30%. This marked reduction in incidents directly contributed to an improved Net Operating Income (NOI) and operational efficiency, safeguarding the company against financial setbacks.
Conclusion
In conclusion, the solution addressed the initial challenge and exceeded expectations. The multifaceted approach to fraud detection, including document pre-processing, NLP-based Analysis, Computer Vision for image scrutiny, ID verification with facial recognition, and API integration, highlighted the company's commitment to innovation and operational excellence.
This case study, in partnership with Allion, stands as a testament to the transformative power of advanced technologies in turning challenges into opportunities for growth within the dynamic real-world business landscape.