Mobile Onboarding for Bank Customers, Including KYC ... · PDF fileBank Customers, Including...

Mobile Onboarding for Bank Customers,Including KYC,Biometrics and Payments

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Executive Summary

Modern Banks increasingly find the need to enable customers to sign up for Banking products without having to come to Bank branches. This has led to the definition of a need for mobile customer onboarding – either in self-service, or assisted by agents of the Bank. Using mobility for customer acquisition for the full range of banking products – Account Opening, Financial Inclusion, Credit and Loans and banking transactions – requires a sophisticated customer onboarding and engagement platform, with built in KYC, biometrics and payments.

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Contents

Executive Summary.....................................................................................................................2

Introducing Mobile Onboarding and Engagement.................................................................4

Automated Onboarding..............................................................................................................5

Benefits of Automated Onboarding..........................................................................................6

Anywhere, Anytime.....................................................................................................................6

Increased Customer Satisfaction...............................................................................................6

Reduced Costs for the Bank.......................................................................................................6

Reduced Risk and Global Compliance......................................................................................6

Applicable to all Banking Products............................................................................................6

Mobility Platforms for Banking .................................................................................................7

IDmission - The Technology Platform.......................................................................................8

INFORM – Mobility for your business.......................................................................................8

Ada - Platform on the Cloud.......................................................................................................9

Exhibit 1 (Demo Videos)............................................................................................................10

Some Examples of Enterprise Mobility Solutions built using INFORM...............................10

Exhibit 2 Use Cases...................................................................................................................10

Bank Loans – Risk/Fraud Management..................................................................................10

Credit Card Delivery Confirmation..........................................................................................11

Micro Finance and Group Loans.............................................................................................11

Introducing Mobile Onboarding and Engagement

Banking in the 21st century is evolving rapidly to accommodate the realities of the modern market and the technologies preferred by their customers. It is impossible to consider a growth strategy without mobility and state-of-the-art identity management at its core.

The smart phone and tablet revolution have made it possible for Banks to offer their markets completely new ways for customers to engage and get on-boarded for the complete range of banking products.

Some key requirements for these next generation onboarding products are:1. Enhanced customer experience – Enable the customer to provide data as painlessly

as possible. Do not ask the customer repeatedly for the same data.2. Reduced activation time – Do not make the customer wait for weeks or even days –

enable product access immediately – in a few minutes.3. Be Compliant – New rules for AML and KYC are being created for different products

and different countries around the world – you need to be compliant to all of them.

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Figure : Drivers for Automated Onboarding

ProcessStandardization

InformationSharing

DocumentManagement

EliminateData

ErrorsManage Risk

& Compliance

Multi-systemIntegration

In this paper we describe opportunities for banks to grow – both in the unbanked/under-banked segments as well as with traditionally banked customers.

Automated Onboarding

Figure 2 describes a general purpose automated onboarding process.

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Figure 2: A general purpose automated onboarding process

Name: Dr. Jane JoeleDate of Birth: 12/12/1985ID Number: 21-0987654Expiry Date:12/11/2015Address: 889, Main Road, Main Town, USA 12214

Automatic onboarding

IF Product = Bank Account Collect Relevant DataIF Product = LoanCollect Employment, Asset and Liabilities data

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Scan ID Into onboarding application.

Validate ID document,biometrically match customer face with ID document.

3 Extract Customer Data- Verify data with 3rd Parties and credit agencies as required.

4 Collect additional data as required for onboarding.

5 Board customer automatically in 90% of the cases. Exception handling can be referred to a back office.

In some countries, governments have invested in biometric enrollment of the population. These countries often offer the possibility of biometric authentication of customers for onboarding for financial services. Figure 2 shows a process that takes advantage of such opportunities.


Anywhere, AnytimeAutomated onboarding can be offered to a bank’s customers either in self-service or by sending out agents/employees of the bank to a place of the customer’s choosing.

Increased Customer SatisfactionReduce errors, dramatically increase speed of customer activation. 90% of customers can be activated automatically in a couple of minutes.

Reduced Costs for the BankLess than 10% of customers may require enhanced diligence and manual intervention by the back office.

Reduced Risk and Global ComplianceKnow You Customer (KYC) norms help you be compliant while managing your risks.

Applicable to all Banking ProductsAnywhere you have an onboarding process that can benefit from state-of-the-art KYC, connections to 3rd parties for data augmentation and verification, credit histories from 3rd parties.

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Figure : Biometric KYC for customer onboarding

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Enter Customer Identification Number

Scan Customer Fingerprint. Send ID Number and fingerprint to central database for authentication.

3 Retrieve customer data from central database and populate the form

4 Collect additional data as required for onboarding.

5 Board customer automatically in 90% of the cases. Exception handling can be referred to a back office.

Benefits of Automated Onboarding

Automatic onboarding

IF Product = Bank Account Collect Relevant DataIF Product = LoanCollect Employment, Asset and Liabilities data

Identification Number

Name: Dr. Jane JoeleDate of Birth: 12/12/1985ID Number: 21-0987654Expiry Date:12/11/2015Address: 889, Main Road, Main Town, USA 12214


Mobility Platforms for Banking

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Financial Inclusion Credit and other card products Loans Mortgages Pensions

Banks need help in developing their mobile computing infrastructure for the next decade and longer.

This process comprises of three steps –

1. Set Policies

2. Integration with existing Enterprise Software Systems

3. Deploying Mobile Service Delivery Applications

The appropriate technology platform must be able to:

1. Easily integrate with various technologies that find use as Enterprise core Systems of

Record

2. Easily integrate to 3rd party and government databases for the purpose of data

verification and augmentation (for example, INE in Mexico, Aadhaar in India, NADRA

in Pakistan, Experian in the United States etc.)

3. Must be capable of being delivered from the Cloud, or on premise

4. Must be capable of integrating dynamic data collection including multi-modal

biometrics, image collection and processing, signatures, geo location etc.

5. Must be agnostic to hardware and device platforms – must work on smart phones,

tablets, laptops and PCs regardless of the devices operating system

6. Must be capable of being configured to develop and deploy a very large range

business services as required by industry verticals being served.

7. Must be capable of developing and deploying highly customized user experiences so

as to enable each Enterprise to maintain their competitive advantages in the way

they serve their customers.

8. Must come with a management portal for administration of the infrastructure,

reporting and analytics.

IDmission - The Technology Platform

IDmission offers all the technology components needed to enable the Financial Services Vendors to add value to their Enterprise customers for their mobile service delivery needs. IDmission offers INFORM, a configurable front end application development and delivery framework, Ada, a platform on the cloud and a PORTAL, also connected to Ada for infrastructure management, back office use, reporting and analytics.

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INFORM – Mobility for your business

INFORM is an HTML5 application that can be used to configure a wide range of user experiences – without any programming.

PAYMENTCash, Credit, Debit, eWallet, etc.

CREATEDefine data fields – Text, Numbers,

Select lists, Signatures, Images, Biometrics etc.

INTERACTIVEDefine the application logic that makes

the data entry efficient and intuitive

INTER-CONNECTEDOn-line calls enable data pre-population,

data augmentation and verification

IDENTITY INITIATEDBiometric and/or document validation and

verification for ID management

COLLABORATEDefine workflows that enable multiple

teams to work on the same data

Figure : INFORM application development and delivery framework

System of EngagementUse on any Smart Phone,

Tablet, Laptop or PC.

Customer Centric PlatformOn the Cloud

On-Line connections to 3rd party Systems of Record,

and the Enterprise Core.Figure : IDmission Offering

IDmission - The Technology Platform

Ada - Platform on the Cloud

Inform supports 4 types of biometrics (Finger print, Face, Voice and Iris) and can be, and has been, used to configure a large range of applications as required by financial services companies in different parts of the world (see Exhibit 1).

Ada is front ended by an Application Programming Interface (API) over which an applica-tion (such as INFORM) can send it a REQUEST.

The REQUESTS are acted upon by Ada using its software components toolkit (Figure 3) and sent to 3rd party systems if required. After the REQUEST is completely processed the result is returned to the front end application (such as INFORM) in a RESPONSE.

Ada also comes with an Enterprise Service Bus with a large library of pre-configured adapters that enable easy interfacing with the Enterprise core or with 3rd party software Systems of Record.

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Figure : Ada - Platform on the Cloud

Exhibit 1 (Demo Videos)

Exhibit 2 INFORM Use Cases

Introduction to INFORM (English) - https://vimeo.com/116686479

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Some Examples of Enterprise Mobility Solutions built using INFORM

Know your Entity (KYE): onboarding Corporate Entities

https://vimeo.com/1166810421

Bank Loans Application Processing https://vimeo.com/1166796732

Using Biometrics as a second factor for secure self-service transactions


INFORM Features: onboarding and KYC with Biometrics


Financial Services onboarding https://vimeo.com/1166934965

Aadhaar eKYC and onboarding (India) https://vimeo.com/1167967956

Bank Loans – Risk/Fraud Management

Business Background :One of Mexico’s largest banks runs an automobile financing program wherein customers can apply for loans to purchase automobiles (with the vehicle as collateral). The bank is suffering from very significant fraud perpetrated by criminals using stolen/forged identity documents.

Solution: IDmission and Digipro demonstrated a working solution for the Bank that used the

following steps:

1. Capture image of customers IFE card

2. Validate IFE card, extract data from it and populate the application form

3. Capture image of customer’s face

4. Match face image versus photo on IFE card (Flag if match fails)

5. Collect additional data on employment, references, vehicle etc. on the mobile form

6. Collect fingerprint of customer – send to IFE authority to validate

Authorize or decline loan based on KYC and credit score results

Regulatory Background:There is no regulatory requirement for compliance here.

Exhibit 2 INFORM Use Cases

Business Background : A large telecom operator wishes to offer their enterprise customers business application delivered on mobile phones/tablets as a value add to the voice/data services they already provide. In this context they are working with IDmission/Digipro to offer the ability to confirm that a credit card was hand delivered to the same person that applied for it.

Regulatory Background : NONE

Solution : At the point of credit card delivery, an image of the customer’s identity document is captured, along with an image of their face and a fingerprint. The document details, the face and fingerprint are then matched biometrically to those captured during the process of application for the credit card.

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Credit Card Delivery Confirmation

Business Background :Microfinance organizations offer group loans to teams of individuals to help them meet their capital needs. The requirement here is to collect application information from indi-vidual group members, aggregate the information into a complete package and run through their existing credit process. KYC on each group member is required including biometrics for both the application process as well as for weekly transactions in/out of their credit account.

Solution : INFORM was used to build and demonstrate the desired process. The form building and configuration was done entirely by IDmission partners, demonstrating the ability to scale the product easily and globally.

Micro Finance and Group Loans

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United States1021 South Boulder Rd, STE J, Louisville, CO, 80027 USA

IndiaIcon Tower, 4th floor, 402-403,Main Baner Road, Baner, Pune 411045

For more information about INFORM and to learn more about our comprehensive services, contact IDmission Representative or visit us at www.idmission.com

Contact us:[email protected]

©2015 IDmission LLC. All rights reserved.

by

United States1021 South Boulder Rd, STE J, Louisville, CO, 80027 USA

IndiaIcon Tower, 4th floor, 402-403,Main Baner Road, Baner, Pune 411045

For more information about INFORM and to learn more about our comprehensive services, contact IDmission Representative or visit us at www.idmission.com

Contact us:[email protected]

©2015 IDmission LLC. All rights reserved.

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