Here are ten keys that will help fintech companies to strengthen the identity verification of new clients.
Accessing and starting to use financial services has never been easier thanks to fintech companies, which have simplified the process for users to the point that to open an account they only need to download an application, complete some basic registration data, scan their identification, take a photo and wait for confirmation. Today,
%100 mobile experience is vital to compete in the financial services market and to seduce the customer. According to a survey by specialist firms nCino and IDology, %51 of Americans were using a mobile phone when they left the process of opening a new account due to different reasons, including experience.
Investing in artificial intelligence systems can make a difference in terms of security. In fact, it is increasingly common to adopt systems that allow verifying the identity of a new customer through operations as simple as taking a selfie. Facial recognition, a technology widely adopted in mobile phones, allows platforms to verify the identity of users immediately when it comes to simple cases. In the most complex cases, a specialized team can carry out this task manually.
Artificial intelligence systems allow today to validate the identity of new users of fintech platforms through voice biometrics, a tool that combined with other solutions allows them to reduce paperwork while saving costs. By capturing and analyzing the voice of users, the systems allow operations to be processed remotely and securely.
Analyzing a variety of user variables will help fintechs to understand and more effectively approach their potential clients or their existing base. A case of success in taking advantage of solutions such as big data is the fintech Lenddo, based in Singapore, which collects and analyzes information on social networks and other data stored on smartphones, to which users have previously given access, to issue credit ratings. “Likewise, Lenddo's identification product confirms the identity of the borrower when the rating is unreliable,” according to the IDB Invest blog.
Adopting tools to assess the potential risks associated with your clients, carry out continuous monitoring and control payments and transactions are increasingly important strategies to avoid fraud. Today, this is possible thanks to platforms such as Preventor, which works on preventing financial crime through a cloud solution that allows companies to easily access this strategic information for decision-making.
As this boom of technology-based financial services has been generated, attacks focused on these services have also increased, as stated by the cybersecurity company ESET in a recent report based on a survey of 1,200 senior managers in a variety of industries in the UK, US, Japan and Mexico.
The financial sector has traditionally been one of the most prone to these types of attacks, but now business leaders are more aware of it. In fact, the survey revealed that %81 of senior managers surveyed agree that the current crisis resulting from COVID19- "increased the need to improve the financial security of their organizations."
Knowing the credit rating of users and their financial viability is key within the verification strategy of any fintech; however, the effectiveness of the process can determine whether the company gains a new customer or loses it.
This is why algorithm-based predictive models are leading more companies to optimize this process and obtain a quick response to capitalize on these new opportunities.
Do you know who your customer really is and do you maintain a clear communication flow? This is a question that hundreds of companies in the fintech sector are trying to solve worldwide. Today, Preventor solves this dilemma though a tool that is able to offer an overview of all compliance processes with a customer-centric and integrated end-to-end view. These technology solutions are capable of performing tasks ranging from customer onboarding to understanding their business, applying watch or penalty lists, case management, reporting, and auditing.
Having a total traceability of verification and monitoring also requires advanced tools such as voicebots (virtual voice assistants), systems based on machine learning that help fintech companies to answer questions from their users in real time based on data and generate efficiency in those communication mechanisms that are so essential to avoid abandonment of the new account registration processes.
It is estimated that 56 million Americans had an account or financial service opened without their authorization in 2020, which in 77% of the cases affected those companies’ reputation. This shows that the opportunities to build trust are few and the security gaps high. This can only be solved by applying different layers of security, combining and integrating tools available on the market today.
Founder and CEO of Preventor, a leading provider of AI-driven financial crime risk management and digital onboarding solutions. With over 30 years of experience in digital banking, compliance, AI, RegTech, and financial services, Jaime has been at the forefront of innovation in AML, fraud prevention, and identity verification. As a serial entrepreneur, angel investor, and industry expert, he is dedicated to transforming the way businesses manage risk and compliance.
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