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1 While we re waiting to get started, follow us on Twitter and join the conversation with #FightFraudLikeAPro Learn more at pro.whitepages.com/blog 1

2 3 Ways to Increase Online Lending Portfolio Profitability Presented by: Sarah Rosenbaum Whitepages Pro Rich Alterman GDS Link

3 Agenda Online lending fraud rates Strength in partnering Optimizing origination process How to increase portfolio profitability 5 Q&A 3

4 Introductions Sarah Rosenbaum Channel Platform Manager Whitepages Pro Rich Alterman EVP, Business Development GDS Link 4

5 Online Lenders face one of the highest fraud rates of any industry 36% of digital applicants are suspected to be fraudulent - one of the highest fraud rates of any industry 5

6 Time to fund impacts the underwriting process 6

7 A business model attractive to fraudsters Lack of face-to-face interaction Companies loosen underwriting standards to meet growing loan demands Loans provide significant rewards 7

8 We re better together 8

9 Who We Are History GDS Link was founded in 2006 Flagship product, DataView360, released in 2007 Headquartered in Dallas Offices in 6 countries Resellers in 5 countries Clients in 28 countries Products/Channels We Serve Online Marketplace Lending (Consumer and Business) Short-Term, Non-Prime Lending Storefront and On-line Credit Card Point of Sale Retail Finance Auto Finance Equipment Leasing Utilities What We Do Data and Decision Management Tools for Support Across the Credit Lifecycle Credit Consulting Services Scorecard Model Development Compliance Traditional and Machine Learning PMML Support Roadmap: Native Support of Python and R CECL IRFS9 Credit Bureau Platform Consumer and Commercial Credit bureaus 9

10 Global data, global scale 5B global contacts 2.5B s 8B global data links Phone Name Address IP 790M 380M phones addresses 10 *not to scale

11 Optimizing the origination process Applications Whitepages Pro ID Check Verified Identities Auto-fund Lower cost per fund Lead Gen Organic Free filters Low risk Additional friction Increased conversion Referrals Whitepages Pro Identity Check provides global linkages between , phone, name, address, and business data elements Suspected fraud Maximum friction Fraud prevention 11

12 Delicate balance between preventing fraud and approving good applicants faster 12

13 1 Prevent Fraud Losses 13

14 Proven Signals Drive Rule Creation in GDS Link DataView360 Risk Indicators High confidence score Data mismatches never seen < 90 days New or disposable Invalid contact information Non-fixed VoIP and landline phones Prepaid phones Proxy IP address Positive Indicators Low confidence score Matching data first seen > 720 days IP geolocation is within 10 miles of physical and/or phone location 14

15 DataView360 CASECenter, Data Engine & Decision Engine Identity Check 15

16 1 2 Prevent Fraud Losses Leverage identity data to increase conversion 16

17 Success story Online lender speeds best applicants through with auto fund program for loans 2.5 X better conversion rates First payment defaults down 15% Cost per fund dropped 65% Whitepages Pro offers more visibility with the variables they return than other solutions we tested and they re much more descriptive. With Whitepages Pro, we understand exactly what a variable means, which gives us even more understanding when doing manual fraud reviews, creating rules, or evaluating leads. It s not just a generic score and a couple of flags. This lets us test deeper into our applicant pool to auto fund even more applicants as our models get refined and improved. 17

18 1 2 3 Prevent Fraud Losses Leverage identity data to increase conversion Lower Cost per Fund 18

19 Success story Loan Origination Company Doubles Conversions While Slashing Costs Cost per fund dropped 15% Identified indicators to cut bad leads 10% Conversion rates doubled Our hypothesis was that adding Whitepages Pro would increase conversion rates. In order to test that, we kept everything status quo with our underwriting process. We then decided the best solution would be to obtain data from Whitepages Pro prior to our underwriting. We met with the Whitepages Pro team, who helped us identify key indicators to automatically cut bad leads and increase our conversion rates. Right now we re seeing great performance in improving our customer acquisition costs. 19

20 Decision Platform + Identity Data Benefits to Online Lending A solution that provides online lenders with quality data and network insights to optimize the speed and cost of the acquisition funnel. Prevent fraud loss Leverage identity data in rules and machine learning models and avoid fraud related defaults Leverage identity data to increase conversion rate Lower cost per fund Identify quality applicants at the top of the funnel to optimize customer acquisition 20

21 Q&A Learn how we work with online lenders Explore our blog Follow Questions on today s presentation? Sarah Rosenbaum: srosenbaum@whitepages.com Rich Alterman: rich.alterman@gdslink.com 21

22 Thank you 22