Learn more

RETAIL AND ECOMMERCE

HomeChoice, South Africa’s leading homeware retailer, turns to GBG, global identity data specialist, to detect and prevent fraud for its online customers.

  • South Africa’s number one homeware retailer adopts GBG Instinct to prevent fraud for its online customers

  • A total of US$2.5 million was saved through enhanced fraud detection, reduced false positives, and fewer declines, alongside a 33% increase in staff productivity and a 67% reduction in fraudulent applications

Tags

  • Financial services
  • 1000+ Employees
  • Protect

HomeChoice was experiencing a rapid growth in online sales and wanted to digitalise credit decisions to ensure more streamlined client onboarding.

Data-driven decisions on new applicants were made by comparing information provided during the customer application process against historical application data, any existing confirmed fraud databases and reference tables.

67% reduction in fraudulent applications and US$ 2.5m saved in fraud detection, reduction in false positives and reduction of declines.

The customer

HomeChoice is the largest home-shopping retailer in southern Africa, selling fashion, homeware and financial services

The challenge

The HomeChoice Group is the largest home shopping retailer in South Africa selling homeware merchandise and financial services to the expanding urban, middle-income mass market.

HomeChoice offers its customers the option to apply for a credit account, to spread the cost of purchases over a period of months.

The company was experiencing a rapid growth in online sales and wanted to digitalise credit decisions to ensure more streamlined client onboarding. At the same time, HomeChoice wanted to improve the detection and prevention of application fraud and to stay ahead of increasingly sophisticated fraudsters, while minimising any friction introduced into the customer experience within a highly competitive market.

 

With GBG Instinct, our customers have peace of mind. It’s essential that we continue to use technology which keeps up with the rate of innovation to stay ahead of the competition.

HomeChoice

The solution

GBG provided HomeChoice with GBG Instinct, an award-winning application fraud detection and prevention solution, with user-configurable business rules, automation, scorecard and alert parameters.

GBG Instinct offers the flexibility to upscale with advanced capabilities for a future-proof approach to guard against complex fraud typologies and financial crimes, including comprehensive machine learning and unique multi-layered data feed orchestration capabilities.

The solution works by comparing information provided during the customer application process against historical application data, any existing confirmed fraud databases and reference tables. It does this using bespoke rulesets and application fraud scores. This means no delays for good customers, high fraud identification rates, and far fewer time-wasting false positives.

The outcome

GBG Instinct enables HomeChoice to make quick, data driven decisions on new applicants while improving its fraud detection and prevention capabilities.

Benefits delivered by GBG Instinct to the company include:

  • 67% reduction in fraudulent applications (2018-2020) 33% increase in staff productivity (2018-2020)
  • Savings of US$2.5m in fraud detection, reduction in false positives & reduction of declines (2018-2020)
  • Machine Learning to improve fraud detection rates continuously in the future and stay ahead of bad actors as they learn new fraud techniques