UK-based Embedded Finance partner for brands Aro has launched Aro Precision, a solution developed to mitigate fraud and augment the credit market in the region. By introducing the Aro Precision, Aro intends to augment lender capabilities with advanced fraud prevention, improved affordability checks, and optimised marketplace data.

Coming independently from the company’s marketplace, the new solution focuses on progressing lender partnerships by mitigating digital fraud with ID and third-party checks. In addition, Aro Precision aims to increase lenders’ confidence in affordability calculations, thus minimising the number of declined applications and expanding financial opportunities for consumers. Also, by being available for reuse, lenders can leverage the data later in the customer journey. The decision to launch the new solution can be attributed to the current UK market, where underserved individuals face growing affordability difficulties due to heightened demand for credit.

Additionally, as mortgage interest rates continue to modify, stress testing a first-charge loan happens frequently when assessing the affordability of other products. This can in turn trigger more affordability declines or manual processes that affect the application journey and expand operational costs. Aro Precision: capabilities and benefits for the UK market To mitigate the complexities of the UK lending market, Aro Precision intends to optimise mortgage affordability and payment stability, offering actionable insights and improving stress tests for more tailored customer offerings.

When commenting on the announcement, representatives from Aro highlighted that, as lenders are more hesitant to accept customers from direct channels due to concerns regarding fraud and low intent to repay, the company introduced Aro Precision to address these issues by delivering fraud prevention features and identity verification processes integrated into a single API. In addition to augmenting the reliability of customer data, the solution also plans to accelerate onboarding for trustworthy customers, which in turn grows conversion rates and ROI. To launch the service, Aro teamed up with GBG, a company providing identity and location solutions, to utilise its global identity network. By leveraging GBG’s network and its onboarding intelligence, Aro Precision is set to be able to assign a Trust Score (0 – 1000) to each customer, classifying them as high, medium, and low trust.

Through this integrated capability, Aro intends to deliver increased inclusivity, with more intelligence at the point of onboarding. Moreover, the current move aims to support the ongoing efforts of mitigating financial fraud and underlines the potential of collaboration between industry participants to elevate standards across the financial sector. As per the information detailed in the press release, Aro’s new solution is set to be available to lenders later in 2024, with the first Proof of Concepts (POC) taking place at the time of the announcement. .