Financial Services companies worldwide face a relentless and burdensome task of performing “Know Your Customer” (KYC) which are not only mandated by regulators but also safeguards for Financial Services (FS) companies against frauds and credit risks. As per a study in 2018 by Proof pointInc on “Cybersecurity Awareness Survey”, around one in three US adults have been victims of identity fraud and currently costs the economy close to $5 trillion globally a year as per another survey by University of Portsmouth in 2019 on“Financial Cost of Fraud”. Financial Services companies make considerable expense for adopting technology and human resources to stay ahead of regulators, stay out of the headlines and prevent frauds.
KYC and its cousin “Anti Money Laundering”(AML) is a broad field and normally implies complete customer onboarding which includes–
CloudPrisma,with the above understanding and with the objective of improving customerlife-cycle management, leverages Artificial intelligence (AI) and Machine learning (ML) to build in a customized solution for KYC efficacy and customer experience. Advanced analytics in KYC that incorporate AI/ML significantly improve the KYC screening process, resulting in potentially better outcome prediction accuracy. CloudPrisma places importance on customer service in their design while keeping transparency and the ability to keep pace with regulatory requirements in its solution enhancement, update, and strategic directions.
The broad framework of CloudPrisma solution framework has the following main components –
a. Assess the authenticity of an individual or the corporate borrower’s financial documents and flag potential risks and frauds in real time. The authenticity of documents is determined by analyzing their digital footprints and contents, leveraging our advanced machine learning techniques. The verification utilities includes capabilities that can be used by you in the process of onboarding a customer, vendor, or partner, to establish identity and profession and verify aspects like an address which are mandated for KYC verification. The capabilities of the solution extends to verification of corporate entities wherein attributes of the entity can be fetched and verified.
b. Detection of type of document fraud, if any –
i. Modified documents: these are created when a fraudster alters an original, genuine document.
ii. Illegitimate documents: these are completely false creations
iii. Falsely represented documents:these can be legitimate or original, but they don’t belong to the person presenting them
c. To build an effective and scalable solution, an AI-driven KYC to create a set of algorithms that can treat thousands of different document types in a consistent and standardized way. Across document types, certain foundational steps remain the same: models require front-facing and angled images of a user’s document, alongside manual input of the document information.
d. Minimize Exposure through Flexible Fraud Detection Methods like detect anomalies incheck signatures and check stock images to reduce your overall fraud risk exposure. Leverage flexible fraud detection methods applicable at the point of capture and in-clearing as your financial institution offers ever-evolving transaction options (e.g., remote deposit via a mobile device).
e. Customizable to specific requirements, utilize the provided signature verification, check stock and combine risk score engine,build your own customized rule set or add a variety of verification engine options to detect pre authorized drafts, payee line and date line verification.
f. Broker/dealer identification offering financial services companies a signature verification solution that can automatically verify a broker and/or dealer’s authorized signature against a reference signature database.
2. Enhanced Customer Due diligence – to address the customer onboarding components of Risk Assessment& Watch list /sanction screening including legal report, as applicable.
a. A comprehensive legal report of your customer or vendor seamlessly, eliminating the time-consuming process of gathering legal information. The engine runs a search amongst 25+ crore legal cases from 630+courts, 15+ tribunals, 5+ defaulter lists, and 15 other regulatory organizations to search for cases filed to execute a thorough legal check. Can improve, Check Fraud Prevention with a Robust Combined Risk Score.
b. This solution can be a plug-and-play system for individual utilities using APIs so you can build custom user Journeys in sync with your own product offering. The fraud check can be automated and eliminating the need for physical and manual checks.
c. Incorporate a FraudCheck Utility to check –
i. Bank e-statements
ii. ITR V-Form
iii. EPF check for consumers
iv. Form 26 AS e-forms for consumers
v. Credit card e-statements for consumers
vi. ID verification services
vii. Profession verification services
viii. Address verification
ix. Judicial verification
3. Ongoing customer risk-based assessments with CloudPrisma RPA & Automation solution for regular check son credit and other parameters with alerts for financial services companies to stay ahead of competition and also safeguard against potential frauds.
The CloudPrisma solution provides immense solution to the financial services customers to –
Choose CloudPrisma for better fact based customer insights and stay ahead of competition
