Pension On-boarding in Latin America
Business Background :
This government mandated program has over 50MM account holders (about 20MM active at any point in time) and over USD150BB funds under management. The program is regulated by the national Pension regulator and managed by private companies called AFORES. The technology is run by PROCESAR – a company owned in equal part by each of the AFORES. The AFORES compete with each other by inducing customers to switch from one AFORE to another. The regulator became concerned when a large number of switches were performed by customers moving from AFORES offering higher rates of return to ones offering lower rates of return. The problem, the regulator decided was that the customers were financially illiterate and making uninformed choices.
Regulatory Background :The regulator passed regulations requiring AFORES to use tablet based applications instead of the current paper forms. The tablet would be required to use a voice recording to INFORM the customer of the salient features of the transaction they were choosing to undertake. The customer would be required to speak back into the tablet confirming that they have heard and understood the details of the transaction they are undertaking. A further confirmation is provided by capturing the customer’s fingerprint and the fingerprint of the AFORE agent (called a promoter). Fingerprints and voice recording need to be stored on the cloud for reporting and audit.
IDmission in partnership with DigiPro, S.A. de C.V. offers ready to go product that meets all the requirements for AFORES to be able to take a product to market, fully compliant with regulations as well as offering a significantly improved user experience for both the promoters as well as the customers.
Bank Loans – Risk/Fraud Management
Business Background : One of Mexico’s second 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.
Regulatory Background : There is no regulatory requirement for compliance here.
Solution : IDmission and Digipro demonstrated a working solution for the Bank that used the following steps:
Capture image of customers IFE card
Validate IFE card, extract data from it and populate the application form
Capture image of customer’s face
Match face image versus photo on IFE card (Flag if match fails)
Collect additional data on employment, references, vehicle etc. on the mobile form
Collect fingerprint of customer – send to IFE authority to validate
Authorize or decline loan based on KYC and credit score results
Credit Card Delivery Confirmation
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.
Micro Finance and Group Loans
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 individual 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.
Money Transfer – KYC at Point of Service
Business Background : A large global Money Transfer company is under regulatory pressure to ensure KYC is done for customers that send or receive money in certain jurisdictions.
Regulatory Background : Agents have been taking photocopies of ID documents of customers as required by regulators for some years now. However, audits by regulators found MANY instances where obviously fraudulent documents had been copied and stored (ID’s showed photos of Panda bears, Barack Obama, or just random scenery or altogether blank). The money Transfer company came under tremendous pressure to ensure that ID’s were captured and validated at the Point of Service.
Solution : IDmission offered its platform capabilities to inspect images using computer vision. ID images captured at the POS are sent to IDmission (either in real-time or in batches) and each is inspected for image based authenticity (detect location of security features, data etc.). Data is extracted and validated using check digit validation for ID numbers, date of expiry etc. IDmission is currently processing large numbers every day from Spain, Portugal and Italy. Expansion to other countries in 2015 is underway. In India, the same process is followed but biometric fingerprint capture is used. These fingerprints are validated by Aadhaar, the national biometric database run by the Government of India.
Know Your Agents
Business Background : A large, global, money transfer company is under regulatory pressure to ensure that they have complete data on all their agents around the world. The company uses a hierarchy of Master Agents that sign up sub agents. It is required to have complete information on Master Agent Entities, Sub Agent Entities and all the beneficial owners of each business entity.
Regulatory Background : Anti Money Laundering laws and financial compliance laws in various jurisdictions require – data collection, AML checks, Credit Checks and Global Due Diligence for all existing agents as for all newly signed up agents.
Solution : The company marks the agents they wish to collect data using their system of record. IDmission connects to the System of Record and picks up up all marked records. Existing data is populated into the form and sent to the responsible Master Agent (MA). The MA reviews the data, edits it and enters any sub-agent information that is known to them. The sub-agent (SA) receives the form with aggregated data and edits, updates and adds owner information. The owner(s) get the form with all available data add to it and certify by signing. The package (with data from MA, SA and Owners) is taken through a workflow consisting of 4 steps:
Agent Implementation team checks for data completeness.
Global Due Diligence
At any of these steps the form can be sent back to the originator (MA, SA or Owner) to review, add or replace data/documents.
Business Background : Onboarding a customer for automobile insurance was a paper based process that required the agent to fill the application form, take these forms to an office location, enter the data into a computer. If the policy was issued based on data provided, then the agent had to go back to the customer to collect payment and issue a cover note for the policy. The company wanted to use mobile phones/tablets owned by their agents (BYOD) to enable policy sales and renewals in the field – to reduce activation times from days to minutes.
Solution : INFORM was configured to collect vehicle information, connect online to the insurance company to get vehicle valuation numbers. Then agent collected coverage information and INFORM got an on-line quotation for premiums. If accepted by the customer – Customer information is collected and payment collected and cover note issued on the spot.