Solutions and Capabilities to prevent digital fraud (Session 2/5)

7min

Solutions and Capabilities to prevent digital fraud (Session 2/5)

In this session we’ll talk about solutions capabilities that can help combat online fraud and deliver balanced operational excellence.

Learning Points:

1. The importance of integrated E2E journeys for compliance and same-session customer completions

2. Essential capabilities to consider for your transformational digitisation programme

3. Strong KYC/onboarding drives ongoing client authentication and operational excellence

About this session:

This session introduces the combination of capabilities that can transform the customer experience while minimising the opportunity for fraud. It explores how these capabilities have a positive impact on the typical customer journey.

“Such capabilities enable End-to-End transactions to be undertaken within the SAME MEETING – seeing purchase completion rates for loan applications leap from 3% to over 40%!”

Chris Jones, Managing Director, Icon UK Ltd

1. The typical customer journey is inefficient and too often frustrating
In too many current processes, an advisor or representative travels to meet clients, or vice-versa, to discuss complex regulated products and services where ‘knowing the customer’ is important – e.g. for loans, mortgages or financial investments.

But this has limitations:

• The original identity documents (eg, passport, driving license) may have to copied (or worse, to be taken and later returned)

• The validity of the documents can’t be checked in real time

• Evidence that the picture in the photo is the same as the client is reliant on the advisor’s word

• Documents may need to be generated, amended, posted, signed and scanned

• The process can’t be completed in one transaction and may take several days.

It provides a customer experience akin to pulling teeth!

In others, parts of these process stages have been made digital but only as discrete work areas (digital silos) and the opportunity to transform the entire end-to-end (E2E) process has not been taken.

2. What solutions are there to overcome these limitations?

Online Smart Meetings provide facilities to allow the participants to perform the same meetings remotely, for example:

• Reviewing documents together

• Sharing screens

• Signing documents

• Taking evidence for suitability confirmation, KYC and AML

• Making notes

The customer may also be able to self-serve, using artificial intelligence (AI) assistance to simplify or support the process, where these virtual agents are available 24/7. AI can also help human agents assist customers through sometimes complex transactions, ensuring they follow the correct procedures for compliance and best practice outcomes.

What is a Smart Meeting?

Essentially, it is a virtual meeting room with a range of collaboration tools using a web-video connection. Remote advisors can guide customers as if face-to-face through choices, decisions and documentation using screen-share while automatically gathering ID documentation and evidential recordings of meeting sessions (giving an independent record of the client’s intent and understanding before consent via e-signing of documents). Some or all can be supported with AI and fronted via a human or virtual agent.

How is ID Document verification completed?

A customer’s identity can be verified conveniently, assisted by an automated visual KYC check against identity documents presented to the webcam.

The documents can also be validated using external reference sources of related customer information on a real-time basis. This gives greater certainty of presented details, strong customer authentication and strong audit trails.

These services offer a robust obstacle and highly visible deterrent for would-be fraudsters who may otherwise take advantage of the anonymity of digital remote processes. Beyond the ‘physical’ ID checks, recording of individuals generally reduces their inclination to lie, exaggerate or mis-represent.

3. How do Smart Meetings help manage the Customer Lifecycle process?

While the complete lifecycle ranges from marketing to support, the focus is on how to reduce fraud through three key stages in customer journeys for high value regulated transactions:

• Suitability or Qualification and then Onboarding

• Advice leading to product or services sales

• Support through Client Servicing, Administration, Claims and Support processes

Such capabilities enable end-to-end transactions to be undertaken within the same meeting.

Why? If you were providing loans, wouldn’t you like to see purchase completion rates for loan applications leap from 3% to over 40%?

This scale of transformational impact is repeatable over many sectors and different use cases

What functionalities help to achieve this?

There are many capabilities that can be used in a Smart Meeting; what you decide to use will depend on the business transactions you perform. Below is a list of features that could be utilised:

If two or more of these are of interest, you may wish to take a deeper dive to explore further options for your organisation. Some functionalities apply to just one sub-stage area (e.g. e-signing functions for the ‘client e-sign-up’ process, which may consist of a series of actions and systems).

It is important that all technologies, at least through the critical mid-three stages, talk to each other seamlessly in real-time to enable a ‘straight through process’ to be accomplished.

4. What is the most common digital transformation blocker?

The integration overhead is perceived as a prohibitive cost for many, but one that if performed well creates a substantial transformation opportunity. There are a variety of new, modern platforms that are designed to remove the systems integration and the ongoing maintenance load for businesses.

Analyse whether your chosen technology can provide:

• A solution that handles complete customer journeys without break outs, bridging the gaps between the multiple systems

• A guided user experience to soften the transition from paper or digital silos to an end-to-end seamless electronic process

• Less fraud and better compliance (whilst enabling sales success)

• Removal of passwords and other outdated authentication methods

• Modular functionality, configurable for rapid design and implementation of tailored end-to-end solutions

5. How can a business identify the solution that suits it best?

Identify and focus on the high impact areas first:

• Pair internal knowledge of ‘as is’ processes with externally assisted understanding of best of breed options to create a clear ‘future state’ plan for all types of improved customer journeys.

• Find complete platforms that can be used flexibly for the spectrum of future use cases across the enterprise – selling, onboarding, AML/KYC compliance, advice, service or support.

• Enable suitability to service processes with advanced tools for web-video collaboration, biometric identification and AI-assisted journeys (human-assisted and self-serve).

Take-aways:

1. Find complete platforms for flexible use over a spectrum of future use cases

2. Multiple factor biometric identification and webcam onboarding will be standard

3. Fraud rates can tumble whilst boosting business completions over 10X

Bonus

Think your processes are overloaded?

Technology or Tools a bit outdated?

Are your systems disjointed?

See how your digital priorities assessment compares with the market – Take the 5-minute Improvement Priorities Survey

Tip: check out the other videos for further free tools

Transform your and your Customer’s regulated Documents experience – ask how.

This transcript is also available as a PDF download within the files tab.

Icon UK – Solutions and Capabilities to prevent digital fraud (Session 2/5)

Business reporter asked Icon UK some tough questions concerning online fraud. This second session covers solutions and capabilities to prevent digital fraud in high value transactions.

In this session, we’ll talk about solutions capabilities that can help combat online fraud and deliver balanced operational excellence. In many current processes, an advisor or representative travels to meet clients, or clients travel to offices or retail premises in order to engage in discussions relating to complex regulated products and services such as loans, mortgages, or financial investments.

How do solutions, like Icon’s, help? Solutions include everything an advisor might need to conduct all aspects of an array of different meeting types. Tasks, like advisors guiding customers through documentation, whilst making evidential recordings of meeting sessions, giving an independent record of clients intent and understanding before consent via e-signing of documents and much this happening automatically.

Verify the identity of applicants and customers first time, conveniently anywhere assisting with automated visual KYC, Know Your Customer checks, against identity documents presented to the webcam as well as externally reference other customer information on a real time basis. And that gives greater certainty of customer identity and strong audit trails.

Reuse of onboarding KYC for remote authentication for years of customer service, whether self-service or human assisted. Remote face to face engagements with clients or multiple parties, an online meeting removing the need to travel. But this is much more than a standard video conference.

These services offer a robust obstacle and a highly visible deterrent for would be fraudsters who may take advantage of the anonymity of digital remote processes. Beyond the physical ID checks, recording of individuals generally reduces their inclination to lie, exaggerate, or misrepresent.

How does all this help manage the customer lifecycle process?

A modern human advised customer lifecycle for a regulated product should include a suite of configurable powerful integrated tools to enable successful online meetings. These focus on three key stages in many of our clients customer journeys for high value regulated transactions. Namely, initial suitability, or also sometimes qualification, and then onboarding. Secondly, advice leading to products or services sales. And that also includes auto transcriptions and records of such. Thirdly, support through client servicing, administration, claims, and human supported processes.

Such capabilities enable end to end transactions to be undertaken within the same meeting. Purchase completion rates for loan applications leap from 3% to over 40%.

What solutions can safeguard document, identity, and consent based customer experience against online fraud?

Solutions that can handle complete customer journeys without breakouts are significantly valuable. Not just for acquisition completion rates, but also fraud reduction, compliance, and client satisfaction. But designing and implementing tailored end to end solutions is challenging. Even within the same business, there’ll be material differences by use case. So solutions need modular functionality, configurable on a [? SAS ?] basis within different customer environments. These will be the winners.

What functionalities help to achieve this?

A complete platform enabling all types of use case from fully automated self-service to in-person video meeting. Adding video meetings allows both parties to interact and respond in a richer way, such as the nonverbal communications. However, video alone doesn’t provide the equivalent of face to face ability to interact with parties.

Professional advisors need the ability to collaborate and share information, resulting in allowing and enabling remote transactions such as the signing of documents and sharing of information to take place. AI powered scripts can also enable virtual or human agents, whether in self-service chat or guided discussion video mode. Both enabling compliance and best practise outcomes. Other capabilities needed are configurable choices for many things, such as robust forms completion, participant recognition, document checks, external reference checks, multiple lease signing, and CRM connectors or hosting options.

The blocker to date is the integration overhead, a prohibitive cost for many, but one that creates a substantial improvement opportunity. There are a variety of new modern platforms that are designed to remove the systems integration and the ongoing maintenance load for businesses. The outcomes are a solution that can bridge the gaps between multiple systems. A guided user experience to soften the transition from paper to an end to end electronic process. Less fraud and better compliance, which incidentally can also boost sales success.

How did these solutions harness biometric identification?

We believe that [? winners ?] will be advanced three dimensional facial recognition in online meetings, complemented with additional biometric factors such as voice, or signature, and/or device based factors, like mobile device number, touch ID, IP address, Active Directory login, and so on. We want to ban passwords and enable human centric biometrics, which adapt to different conditions capable of being security chosen by end clients differently according to their use and their mood.

Webcam identification of new applicants is moving to using advanced ID certification technologies. The mobile capture of client and agent faces provides evidence that all participants were present in a documented process. This can be presented as human assisted or self serve. Once the initial onboarding has been approved with face, voice, or signing biometric profiles created, further authentication is enabled allowing access to services.

The 3D image scan of the user is compared to a database of images acquired during the KYC and onboarding time. If the match does not meet the threshold set, the session is automatically referred to a remote video operator for exceptions and/or assistance and further checks. In the next session, we’ll present some use cases that demonstrate how these solutions can prevent fraud and improve customer experience.

Icon UK - Solutions and Capabilities to prevent digital fraud (Session 2/5)

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Solutions and Capabilities to prevent digital fraud (Session 2/5)

Icon UK - Solutions and Capabilities to prevent digital fraud (Session 2/5)

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