B9 Announces New Risk Management Program with Alternative Data Sources and Advanced Analytics

San Francisco, California--(Newsfile Corp. - July 5, 2023) - B9, a leading financial technology company specializing in online lending platforms, has introduced a pioneering risk management and anti-fraud program through the utilization of alternative data sources and advanced analytics. Unlike traditional banks, B9 conducts its operations entirely online, necessitating a different approach to ensure the security of its lending processes.

According to Alex Isaev, Head of Product at B9, "Alternative data sources, such as device information, social media data, e-commerce transactions, and mobile usage patterns, provide valuable insights into a borrower's financial behavior and repayment capacity. By analyzing these alternative data sources, we realized we could make more accurate assessments of creditworthiness and detect potential fraud."

B9 Announces a New Risk Management Program with Alternative Data Sources and Advanced Analytics

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Device data now emerges as a key component in the detection and prevention of fraudulent activities. The unique identifiers associated with each device, such as IP address, MAC address, or device fingerprinting, will enable B9 to identify and track devices accessing its online lending platform. Monitoring these identifiers will now help detect known malicious devices or anomalies that indicate account takeovers or new account fraud. Analysis of a device's history, including its operating system, browser version, and installed applications, will further provide insights into usage patterns that may suggest fraudulent activities.

"Device data also offers information about the physical location of the user's device," explains Isaev. "Geolocation analysis will help us verify the consistency of the borrower's location information with their device's actual location. Inconsistencies between claimed and detected locations will now raise red flags for potential fraud."

With the vast amount of data generated by online lending platforms, including loan applications, transaction records, device information, and IP addresses, B9 will be leveraging big data analytics techniques to identify patterns, anomalies, and correlations associated with fraudulent activities. Advanced machine learning and AI techniques will enable the analysis of available data to detect fraudulent behaviors in real-time. By training machine learning models using labeled data, B9 is further developing even more accurate fraud detection models that will assess new payroll advance applications and transactional data to flag potential fraud risks.

Another new technology in B9's anti-fraud management arsenal is cluster modeling-designed to identify patterns and group similar entities together, facilitating the detection of potentially fraudulent activities and effective risk management.

"Cluster models analyze large datasets containing information about borrowers, transactions, and other relevant variables," says Isaev. "By segmenting the data into distinct groups based on similarities in borrower profiles or transaction characteristics, we will gain a deeper understanding of the data and identify potential clusters associated with fraudulent activities."

With this new program, B9 can now detect any suspicious behavior that deviates significantly from the norm when comparing individual borrower or transaction characteristics to established clusters. Cluster models will also be flagging fraud patterns by identifying other clusters exhibiting similar fraudulent behavior. Historical data analysis allows the model to detect common characteristics or patterns associated with fraudulent activities, enabling the development of robust fraud detection rules and enhancing the accuracy of fraud identification.

"This new and innovative approach to risk management and anti-fraud procedures will set a new standard for online lending platforms," adds Isaev. "By harnessing alternative data sources and employing advanced analytics techniques, we can finally ensure the security and integrity of our payroll advance operations while at the very same time provide reliable financial services to our customers. That's a win for everyone involved."

About the Company:

B9 is a U.S. based financial technology company, headquarted in San Francisco, California that allows full time employees, contractors, or gig workers to get a portion of their paychecks up to 15 days before payday at 0% APR. It also distributes Visa debit cards that offer up to 5% cash back. B9 partners with Evolve Bank & Trust, a member of the Federal Deposit Insurance Company (FDIC), to provide banking services. B9 Cards are issued by Evolve Bank & Trust pursuant to a license from Visa. Rewards are not offered by Evolve Bank & Trust and are instead offered and managed by B9. Bank account funds are FDIC insured up to $250,000 through Evolve Bank & Trust.

For media inquiries, please contact:

Susan Smith
PR Manager, B9
susan@bnine.com
415-623-9525

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