July 23, 2020

First quarter earnings reports from JPMorgan Chase and Wells Fargo revealed the country’s largest banks are preparing for future losses. With commercial bankruptcies already up 26% this year, bankruptcy experts are urging financial institutions to plan for a potential surge in filings. To prepare, commercial lenders are reviewing strategies for mitigating collateral and credit risk in the event business bankruptcies spike. One area lenders are focused on is their Account Receivable lines of credit. They are evaluating loan monitoring solutions that could serve as early indicators to adjust credit lines by monitoring every company listed in a borrower’s expected receivables pool and notifying the lender when a bankruptcy is filed Before implementing loan monitoring products, it’s essential to test and review the bankruptcy data providers’ match rate accuracy. Flawed matching logic will result in missed commercial bankruptcy filings, opening lenders up to unnecessary financial exposure. It can also lead to false positives, which are equally problematic. Some providers widen their net to ensure all potential matches are identified. However, this requires the lender to deploy a laborious manual review process to validate each hit to determine validity. Data enhancement processes, matching methodology, and scoring models vary by supplier so it’s critical to understand the differences. 

AIS SmartMatch meets the highest quality metrics in the industry with a false positive rate of less than 1.00% and an unapplied rate under .50%. Our logic reduces manual review of "possible” matches by 90%. We’ve spent nearly 20 years testing and calibrating SmartMatch to ensure our clients have the confidence in our ability to match our information to their Customers.  

For enhanced matching, we append nine digit Social Security numbers and Customer addresses histories when adding case information to our proprietary database. Our logic then mimics the human decision-making process when discerning a match and provides the most intelligent match results in the industry.

AIS SmartMatch Technology:

• Analyzes each component of your Customer record including Name, Address and Social Security Number
• Further logic is used to examine special situations like gender, generation, root name, and word sounds. 
• A weighted score is then applied and confidence level assigned, based on client-defined thresholds