Introducing Capitol
Capitole Finance-Tofinso is a subsidiary of Caisse d'Épargne de Midi-Pyrénées, part of the BPCE group. A specialist in leasing for over 50 years, Capitole Finance supports businesses and individuals through three areas of expertise:
- financing of professional equipment (Equipment Leasing and Financial Rental) with its LIZequip' product;
- car leasing: LOA / LLD via LIZauto;
- financing for pleasure boats with LIZmer.
Capitole Finance represents 1.2 billion euros of outstanding credit and employs 180 employees, spread between the head office in Labège (31) and the offices in Paris, Lyon, Marseille and Monaco.
Véronique Skrela supervises, within the credit risk management department, 36 experts in the analysis of financing files and the granting of credit.
The fight against fraud is part of the daily routine of its teams, aided in this by the Meelo solution.
How did you find out about Meelo?
In the aftermath of the Covid crisis, approximately two years ago, Capitole Finance observed a resurgence of fraud . Initially in the retail market, then in the corporate market.
Between identity theft, fake profiles of institutions, and companies with dubious activities, the volume of fraudulent applications had become too large to process manually. Capitole Finance sought tools using AI technologies. The goal was to automate initial checks on loan applications and expedite the rejection of high-risk applications.
“ Our main concern at the timeVéronique Skrela explains, It was about verifying that the person submitting a funding application was indeed who they claimed to be. On the recommendation of a partner, we arranged a demo with Meelo and were convinced by the effectiveness of the solution. ”When and how did your collaboration begin?
After a testing phase carried out on an initial series of cases, Capitole Finance integrated the Meelo solution into its panel of anti-fraud tools in July 2023.
“ There has been a real turning point in our business ,” explains Véronique Skrela. Credit regulations have become stricter. Fraudsters have had to find ways to circumvent them. The digitalization of customer journeys has exacerbated the shift in fraud techniques, with identity theft becoming increasingly prevalent.
“ Apart from boat leasing, we no longer see people in person . Therefore, we can no longer do the same job. Today, we verify a person's identity before even checking their creditworthiness .”
The conclusion is undeniable. Fraud is everywhere. Even honest people have been tempted to falsify documents to obtain credit approval. Capitole Finance teams needed to be quickly equipped with effective solutions to stem this growing phenomenon.
How do the Capitole Finance teams use the Meelo solution on a daily basis?
Meelo serves as the first detection tool. Capitole Finance analysts save time, particularly on loan refusals: “ The solution helps avoid wasting 20 minutes scrutinizing suspicious documents and closes fraudulent cases faster than before .”
Véronique Skrela clarifies: “ Meelo is an aid, but is in no way the decision-maker. The expertise of our financial analysts remains crucial in the review of cases .”
The solution also allows for the implementation of KPIs. “ Monitoring them is fundamental to knowing where to focus our efforts. ” Véronique Skrela added: “ We're not going to eradicate everything. We know that some world champions of fraud will always be one step ahead. And besides, we can't do everything. Thanks to the indicators, we maximize our agility and tighten the criteria for each new case . There are things we no longer accept today, even if there will always be exceptions.”
This is why it is essential for Capitole Finance to retain the final decision-making power. “ AI has the advantage of learning from experience and evolving rapidly. However, we have no intention of hiding behind AI .” Meelo’s anti-fraud solution offers significant productivity and time savings. It has proven its effectiveness. It helps automate tasks and reassures teams to a certain extent. “ However ,” Ms. Skrela points out, our experts do not rely solely on credit scoring to decide on a case . That would be unethical and contrary to the latest rules established by the Court of Justice of the European Union on this matter .”
For the head of risk at Capitole Finance, it goes even further. “ The solution frees up our time to more thoroughly examine promising applications. In this way, we respect our clients .” This vision of responsible financing, widely shared by the Meelo teams, aims to minimize the actions of fraudsters and provide access to credit for those who truly deserve it.
What are the results?
Integrating Meelo into Capitole Finance's decision-making processes has reduced fraud by almost 60%.
The fraudsters' reaction was also swift. While attempted fraud in the business market has decreased significantly, identity theft remains a serious concern.
“ Together with the Meelo teams, we are constantly brainstorming to adapt the solution. Each case can potentially present a different type of fraud. Therefore, it is crucial to quickly implement a firewall tailored to each new issue. ”
What do you think of Meelo's support?
“ The Meelo team is fast, agile, and adaptable. They're people who worked in the same field as us before creating their solution, so we share common expertise. It's great to speak the same language. ”
Meelo addresses a need at Capitole. But more than that, Meelo allows us to “ harmonize risk with AI without relinquishing our expertise. ” Ms. Skrela continued: “ It was invaluable to share with external experts when fraudulent cases flooded in . Today, co-creating a sustainable and responsible anti-fraud solution makes the exchanges between our two entities just as engaging.”
And tomorrow?
In the automotive financing market, the prospect of the rise of lease-purchase agreements (LOA) and long-term leases (LDD) with fully digital processes makes AI attractive on several levels. Thanks to a streamlined and frictionless purchasing process, Capitole Finance's service quality will improve even further. " We estimate that between 30 and 45% of applications could be approved online in just a few clicks ." By combining digitalization and automation, valued customers will have easier access to credit in extremely short timeframes. This is a good way to stay ahead in a market where Capitole was a pioneer.
Want to learn more about Meelo's solutions for combating fraud in car financing?