A gamechanger in NewDay’s battle against fraud

Overview: The Experian advantage: A gamechanger in NewDay’s battle against fraud

Fighting fraud with data analytics

Financial fraud is a multi-million-pound industry. In 2022, losses exceeded £1 billion in the UK alone.

Through our CrossCore machine learning platform, we helped leading UK credit provider, NewDay to fight fraud together. 

Man making a purchase online

Challenge overview

Combatting higher fraud applications and a friction-heavy onboarding process

NewDay’s highly scalable digital platform allows it to continually innovate and develop products that meet their customers’ changing needs. However, in 2021 as it grew its customer base, it faced an increasing number of fraudulent applicants. To stop the fraudsters, NewDay added more application screening processes to its already stringent system. However, these additional checks delayed the application process for genuine applicants, generated more applicant referrals to be manually checked and lead to increased operational costs.

  • Increasing customer base led to increasing number of fraudulent applications
  • Increased customer friction in onboarding
  • Increased operational costs
View NewDay Profile
Company Bio:

NewDay is a leading provider of unsecured consumer credit in the UK providing 4.6 million customers with access to credit. The firm is a broad-spectrum lender with a specialism in delivering services to near-prime customers who may not have easy access to credit from mainstream lenders.

Its credit product offering includes physical and digital cards – including Bip, the UK’s first digital only credit card – and Newpay, a Buy Now, Pay Later (BNPL) service offering instalment finance and revolving credit that is fully regulated.

Founded: 2000
Industry: Financial services
Featured brands: Newpay, Bip
Our key drivers for our fraud strategy were stronger fraud detection and lower referral rates, while still creating a positive onboarding experience for new customers.
Danny Clark, Head of Fraud Prevention at NewDay

Solution overview

Data analytics and real-time fraud detection

Through CrossCore, NewDay was able to identify and consolidate a wide range of risk alerts into a single assessment. The results were exceptional. Clark reported: “As a result of that deployment, we’ve seen an 59% reduction in our application fraud losses.” For the first time, NewDay could leverage multiple data sources in one platform and use advanced analytics to make real-time risk decisions. In fact, it now only takes eight seconds to detect fraud, with further optimisations planned to reduce this to just six seconds.

NewDay has entered a new era of data-driven fraud defence. Faster and more accurate fraud detection, a reduction in time and costs to investigate fraud and a more seamless customer journey.
Discover CrossCore
  • 59% reduction in application fraud losses
  • 30-40% decrease in applicant referrals
  • 8 second fraud response time
The Experian advantage: A gamechanger in NewDay’s battle against fraud

The Experian advantage: A gamechanger in NewDay’s battle against fraud

Download full case study

Related Products

We have solutions we can tailor for your business needs

Speak to an expert
Case Study
Helping TRIVER support small businesses with instant capital in a click

When it comes to accessing working capital, small businesses face a number of challenges. Application processes can be lengthy and often require significant paperwork. Even then, once loans are approved, it can sometimes take weeks for businesses to receive the funds, making it harder to service their short-term needs.

But through using advanced data and sophisticated AI, small business working capital provider TRIVER has revolutionised how small businesses access finance, underwriting the risk of small business borrowing in an automated and near-instant way.

See full story >
Case Study
A new context for Open Banking data

Our mission at Experian is to help drive financial inclusion for everyone, continually exploring new ways to use our data for good to support consumers to meet their financial goals.

We gifted our Affordability Passport solution to entitledto and believe housing helping to introduce Open Banking data into a space that could see immense benefits.

Most customers were positive about the use of Open Banking and willing to consent to the process. They found the process easier and more user-friendly, especially as it removed the requirement for paper proofs and enabled access to housing more quickly.

See full story >
Case Study
Using insights to inform expansion planning and improved customer experiences

Village Hotels’ unique business model—comprising Hotel Accommodation, Food & Beverage, and Health & Wellness—allows for diverse revenue streams and cross-selling opportunities. Despite the challenges posed by the Covid-19 pandemic, the company has remained committed to expansion with aims for continued growth both organically and through new developments.

See full story >
Case Study
A decade of partnership to power Travis Perkins' logistics operation

Travis Perkins is a leading supplier of building materials to the construction industry, operating more than 500 branches in the UK.

The company relies on valid address data for a seamless multi-channel shopping experience, ensuring efficient delivery of bulky construction goods to both in-store and online customers.

Learn how we’ve partnered with Travis Perkins for more than ten years, using address validation and location technology to support business operations whilst safeguarding customer experience.

See full story >
Case Study
Utilising ConsumerView and Mosaic datasets to develop actionable insights

When developing the ‘Impact Community Carbon Calculator’, The Centre for Sustainable Energy (CSE), in collaboration with the University of Exeter’s Centre for Energy and the Environment, utilised Experian’s ConsumerView and Mosaic datasets.

Designed for use by parishes, wards, district councils and unitary authorities, the tool needed to consider the myriad of household compositions, consumption patterns, and lifestyles present in different areas when calculating the community’s carbon footprint.

See full story >