Learn how Banks use NumLookup to Screen Loan Applications

Amanda Elliot
Amanda Elliot
July 13th, 2023
Banks use NumLookup

NumLookup is a phone number validation and a phone number search service that can provide information about phone numbers such as the owner's name, carrier search, line type, and geographic location. While it may not seem immediately obvious, banks can use NumLookup to screen loan applications and make more informed decisions about approving or denying them.

Here's how a bank might use NumLookup to screen loan applications:

  1. The bank collects the phone number provided by the loan applicant as part of the application process.
  2. The bank submits the phone number to NumLookup to retrieve information about the phone number.
  3. NumLookup returns information about the phone number, such as the carrier, the line type, and the geographic location.
  4. The bank uses this information to help assess the risk associated with the loan application. For example, if the phone number is associated with a prepaid cell phone, this might indicate that the applicant has poor credit or is trying to remain anonymous.
  5. The bank may also use NumLookup to verify the applicant's identity. If the phone number provided by the applicant matches the information returned by NumLookup, this can help validate that the applicant is who they claim to be.

Overall, by using NumLookup to screen loan applications, underwriters can gain additional insight into the creditworthiness and risk associated with each application, which can help them make more informed lending decisions.

Customer Story: How First National Bank uses NumLookup

It was a typical Monday morning at the local branch of First National Bank, and the loan underwriters were busy reviewing the latest batch of auto loan applications that had come in over the weekend. As they worked their way through the stack of paperwork, one application caught their attention.

The applicant, a man named John Smith (real name is being masked for privacy), had provided a phone number that appeared to be associated with a local car dealership. However, the application didn't feel right to the underwriters. They couldn't quite put their finger on it, but they had a hunch that something was off.

In an effort to gather more information about the applicant, the underwriters decided to use NumLookup to search for information about the phone number provided by Mr. Smith. To their surprise, they discovered that the phone number was actually registered to a different name and address than the car dealership that Mr. Smith had claimed to be associated with.

This discovery raised red flags for the underwriters, who suspected that the loan application might be fraudulent. They decided to dig deeper and requested additional documentation from Mr. Smith to support his application. When Mr. Smith was unable to provide the requested documentation, the underwriters denied his loan application and notified law enforcement of their suspicions.

As it turned out, the underwriters' suspicions were well-founded. Mr. Smith was part of a larger auto loan fraud ring that had been operating in the area for several months. By using a false phone number and impersonating a local car dealership, Mr. Smith and his accomplices had obtained auto loans for vehicles they had no intention of paying for.

Thanks to the underwriters' use of phone number search to screen loan applications, First National Bank was able to mitigate the risk of fraud and protect its customers' assets. The bank also worked with law enforcement to bring Mr. Smith and his accomplices to justice and ultimately helped put an end to the auto loan fraud ring that had been operating in the area.