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Biometric onboarding customer win announced by AU10TIX, platform expanded by IDology

HooYu and BioCatch consider lacklustre account opening success rates
Biometric onboarding customer win announced by AU10TIX, platform expanded by IDology

Open banking financial services provider Prime Trust has selected AU10TIX identity verification technology to combat synthetic identity fraud with ID document checks and biometric selfie authentication.

The AU10TIX global ID verification and authentication platform will be used by Prime Trust to deliver fast and secure identity verification with a frictionless user experience to its fintech clients.

“As a former fintech executive, I deeply value what Prime Trust is doing to ensure immediate, reliable access to money of all kinds in today’s remote world and I am thrilled AU10TIX will play a role in growing their vision,” states Carey O’Connor Kolaja, president and COO of AU10TIX. “AU10TIX is dedicated to furthering a more secure and inclusive world and in this case that means ensuring a changemaker like Prime Trust is able to show the world the power of trusting nontraditional exchanges like cryptocurrency at scale.”

IDology adds data controls to platform

IDology has expanded its ExpectID identity verification platform to provide more data visibility and control and customization of the identity verification process.

The company says customers can now use the platform to build a nearly infinite range of identity attribute scenarios specific to the industry or business. Customers are enabled to make real-time, point-and-click adjustments to detect fraud, and receive what IDology says is an unprecedented degree of granularity and data control. Closed-loop identity verification data feedback fuels analytics, operational fine-tuning and insight into customer behavior, even amid the disruption of COVID-19.

“Every business should have the ability to define identity verification attributes that will filter out fraud based on their unique business needs and customer considerations,” says Christina Luttrell, COO of IDology, in the company announcement. “Successfully onboarding new customers and building long-term loyalty in today’s rapidly shifting fraud landscape require businesses to act quickly. On the back end, they must also understand how identity verification attributes are performing so they can make adjustments to attributes that pinpoint fraud on an extremely granular scale while streamlining the verification process for real customers.”

HooYu whitepaper examines fintech KYC checks

Roughly one in four KYC checks for fintech and e-money accounts does not pass, according to a new white paper published by HooYu on fintech onboarding.

The “Fintech and e-money customer onboarding benchmarking report,” prepared by PIF, examined more than a dozen companies and their rate of success in customer sign-up processes. The report notes that money laundering regulations require the name, address and data of birth of new account applicants be verified, and that database checks are one of the main means of doing so. Database checks can be completed in under a second, but not all customers pass, and the method is limited in terms of match rate and geographic coverage, the report says.

Alternative methods, like facial biometrics along with ID document validation and geo-location represent a way to go beyond database checks, PIF observes. HooYu takes this approach, combining biometric facial recognition with ID document, digital footprint, and geo-location analysis and database checks.

The firms examined range from less than 50 percent of applicants passing KYC checks to more than 90 percent, and the time taken for these checks varies from less than five minutes to more than a day.

BioCatch outlines three priorities for digital account opening

The rate of success for account opening is also examined in a blog post from BioCatch which refers to a Javelin Research report suggesting a mere 8 percent of attempts to open a bank account through the mobile channel are successful.

The priorities for companies attempting to protect digital accounts during onboarding are managing fraud risk, eliminating friction and enabling increased digital acquisition, BioCatch argues.

The company notes that a large bank in Asia was able to detect hundreds of fraudulent account openings within four weeks if deploying behavioral biometrics, for an estimated fraud savings of $540,000. Gartner has also noted the potential for passive behavioral biometrics and behavior analysis to reduce the number of high-friction challenges institutions must present. On the third item, a reduction in false declines with behavioral biometrics enabled a card issuer to gain $1 million in revenue which would otherwise have been lost, according to the post.

BioCatch will host a webinar with a Senior Analyst from Aite Group’s Fraud & AML practice on September 30.

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