Speed-First Underwriting Plan
One-page plan for $300 to $600 loans at high APR. The goal is speed with controlled fraud. The live call and debit card capture are the primary gate. IBV is used only to resolve specific uncertainty.
Goal: Speed + Controlled Fraud
Gate: Mandatory Live Call + Card Validation
IBV: Conditional (Resolution Only)
What the data is telling us Lender shows real engagement (text opt-in and borrowers attempting IBV). The issue is not responsiveness. The issue is friction before a strong commitment moment, so good borrowers defect to faster lenders. Core framing Faster money with higher risk beats slower money with better underwriting at this loan size. Lender should compete on speed of a human decision, not speed of automation.
The real question this product answers At this loan size and APR, the question is not “Will they pay?” The question is “Are they real, reachable, and able to pay?” Once fraud risk is cleared, repayment volatility is an acceptable and intentional risk. Policy anchor (use this verbatim) At high APR on a $300 to $600 loan, we are intentionally willing to fund once fraud risk is cleared. Repayment risk is priced in. Fraud risk is not. | Operating objective Fund when these are true Borrower is real, reachable, employed, and holding a valid debit card that can be authorized successfully. Require IBV only when Something material does not reconcile during the live call or payment method validation. Lender must speak to borrowers to capture debit card details. The live call is therefore the natural commitment moment and the best fraud gate. |
The plan
Step 1: Fast fraud hygiene (seconds)
Keep this light and fast. Only use checks you can actually observe and enforce.
- Phone type and basic validity
- Email structure and basic validity
- Employer keyword blacklist
- Internal duplicates you can see: same phone, same address, same card (if available)
Step 2: Communicate “eligible” (not approved)
Use “eligible” to create momentum without overpromising, since the final dollar amount may change after confirmation.
“Based on what you’ve shared, you’re eligible to move forward for a $300 to $600 loan, pending a quick confirmation call and final review.”
Step 3: Mandatory live call (primary gate)
This is both the commitment moment and the best fraud filter.
- Verify identity consistency (application versus call)
- Confirm employment verbally and pay timing
- Confirm reachability (real-time responsiveness)
- Capture debit card in a PCI-safe way
- Validate card: debit (not prepaid), BIN acceptable, cardholder match, authorization success
Step 4: Use IBV only when triggered (resolution only)
IBV is not a default step. It is used only to resolve a specific failure or inconsistency.
- Debit card authorization fails
- Cardholder name mismatch
- Identity inconsistencies (application versus call)
- Employment answers conflict or feel coached
- Borrower refuses or cannot complete a live call
- Anything material does not reconcile during the call
Success metrics (replace vanity metrics)
- Call connect rate
- Call to funded rate
- Debit card pass rate (BIN + authorization)
- Fraud loss per funded loan
- IBV triggered rate (and what triggered it)
Text opt-in and IBV attempt/completion are leading indicators of engagement, not profitability. The goal is funded volume with controlled fraud.
Flow chart (recommended process)
1) Application Submitted
Borrower completes initial intake.
↓
2) Fast Fraud Hygiene (seconds)
Only checks QUICK can observe and enforce (basic validity, employer keywords, internal duplicates).
| FAIL | PASS | ||||||||||||
| ↓ | ↓ | ||||||||||||
Hard Decline Fails fast fraud hygiene. | Borrower Marked ELIGIBLE Eligible for $300 to $600 pending quick call. ↓ 3) Mandatory Live Call + Card Validation Primary commitment and fraud gate.
Decision YES: Something does not add up NO: Everything reconciles
|
IBV trigger checklist (operational)
Trigger IBV if any are true
| Skip IBV when all are true
|
Notes
This plan assumes repayment risk is priced into a high APR, low principal product, so underwriting should focus on fraud prevention and payment rails.
The live call and debit card validation are treated as the primary gate. Use “eligible” rather than “approved” to avoid overpromising when the final amount can vary.
This plan assumes repayment risk is priced into a high APR, low principal product, so underwriting should focus on fraud prevention and payment rails.
The live call and debit card validation are treated as the primary gate. Use “eligible” rather than “approved” to avoid overpromising when the final amount can vary.
Leave A Comment?