What Is an Identity Mismatch Flag?
An identity mismatch flag refers to the automatic detection of inconsistencies between key identifying fields in a submission.
In MCA and small business lending, this can include mismatches between the applicant’s legal name and the account holder, discrepancies in ID documents, or bank statements tied to unrelated entities.
These mismatches are most often found during the scrubbing stage, where incoming submissions are checked for completeness and accuracy. Operators use this flag to decide whether further verification is needed before underwriting can proceed.
How Does an Identity Mismatch Flag Work?
Identity mismatch flagging works by comparing identity fields across submitted documents.
- Data parsing: Details such as business name, owner name, ID information, and account holder are extracted from statements and documents.
- Cross-checking: Fields are compared against each other to confirm consistency.
- Mismatch detection: Differences such as an account under a different name or ID inconsistencies are flagged.
- Outcome: Submissions with mismatches are routed to exception review for clarification.
Heron automates identity mismatch flagging during scrubbing.
- Automated parsing: Bank statements, IDs, and application details are ingested and structured.
- Cross-field validation: Heron checks for alignment between legal entity, account holder, and applicant data.
- Flag generation: Mismatches are flagged automatically and logged in the CRM.
- Next action: Deals with mismatches are paused, and a missing-info or clarification request can be triggered before underwriting continues.
This removes the need for underwriters to manually scan for identity inconsistencies.
Why Is an Identity Mismatch Flag Important?
For brokers and funders, identity mismatch flags are important because they prevent fraud and reduce compliance risk. Funding a business with mismatched documents can lead to repayment issues or regulatory scrutiny.
Heron makes this protection scalable by automatically raising flags at intake. This saves time, improves accuracy, and ensures that mismatches are never overlooked.
Common Use Cases
Identity mismatch flagging is widely applied in submission review.
- Catching applicants whose bank accounts do not match their business name.
- Surfacing discrepancies between ID documents and application details.
- Writing mismatch flags into CRM fields for underwriter visibility.
- Triggering missing-info requests to clarify or correct discrepancies.
- Preventing fraudulent submissions from advancing into underwriting.
FAQs About Identity Mismatch Flag
How does Heron detect identity mismatches?
Heron parses submitted documents, extracts identifying details, and compares them across sources. If names or IDs do not align, a flag is generated automatically.
Why are identity mismatch flags valuable in MCA underwriting?
They protect funders from fraud, misrepresentation, or accidental errors that could compromise repayment or regulatory compliance.
What outputs should teams expect from identity mismatch detection?
Teams receive structured CRM fields highlighting which details did not match, along with a flag that signals the need for manual review.