Identifying Customers in the Digital Era
Sydney, May 3, 2016 AEST (ABN Newswire) - Digital identity poses an array of challenges for the consumer and the merchant. The push to perform Know Your Customer (KYC) checks online (or 100 point check as it's known in Australia) has dramatically increased, with AML/CTF obligated merchants seeking to acquire customers remotely, and in most cases seeking to release the tether to bricks and mortar entirely.
Austrac defines KYC under the AML/CTF legislation as "documentation which sets out a business's approach to ensure that it can effectively identify, verify and monitor its customers and the financial transactions in which they engage, relative to the risks of money laundering and terrorism financing"[1]. Austrac also allows electronic verification, where "information" and/or "data" may be used in lieu of or together with "documents".
Until now, there have only been three commercially feasible and legally compliant means to perform a KYC check, with two of the three requiring manual processes. The most common means has included face to face checks performed at the service providers offices (eg. a bank), with the second means being the use of a certified or notarised document posted to a 'back office' for manual processing (manual) and the final approach being electronic searches of regulated historic databases including credit files or electoral rolls, in the few jurisdictions that make them available electronically. A consequence of the growth of the internet is that historic electronic searches of regulated databases are struggling to stay secure, as a result of data breaches, social engineering or even self disclosure to social media of what was once a persons 'private' personal data.
Historic electronic searches work by taking a person's name, date of birth and address and comparing that information to a government regulated database register, for example an electoral role. The issue with this process is that a lot of the databases are out dated causing a decrease in match rates. Unsuccessful matches then have to perform one of the manual KYC options, which heavily increase the chance of customer abandonment. Furthermore, merchants are unable to on-board customers in many jurisdictions, such as Cyprus, Malta, Gibraltar and Isle of Man who don't have government regulated databases to use. With more than 480 million leaked records last year[2] exposing sensitive information, these historic electronic database searches have become defenceless against online fraudsters. The security breaches mean that impersonation is becoming problematic, and these historic database searches are less and less effective. Together with the increase in Card Not Present (CNP) fraud and chargebacks, industry needs solutions that converge payment with identity to safeguard consumers from these growing impersonation threats.
iSignthis' 'paydentity' solution delivers payments with an automated digital KYC.
iSignthis Ltd (
ASX:ISX) is the global leader in dynamic, digital AML/CFT KYC identity proofing. Our Paydentity solution incorporates real time electronic verification to converge electronic payments with remote KYC identification. This delivers automated customer on-boarding and payments simultaneously. In addition, iSignthis' unique patented solutions protect online customers whilst assisting merchants with CNP chargeback reversal, whilst providing operators with 100% confidence.
What sets iSignthis apart from other legally compliant KYC providers is our global reach, allowing us to reach 3.5Bn financially included persons, located in over 200 countries. With our fast and flexible on-boarding process that takes place post check out, we ensure high conversion rates whilst avoiding customer abandonment. Our truly unique patented process generates an up to date, live KYC data with no manual processes, allowing an automated online KYC workflow in 3-5 minutes. We are also able to provide real time analytics, as well as sanction, PEP and fraud screening. iSignthis meet and/or exceed regulatory compliance with our Digital KYC solution whilst also offering solutions in Card Not Present (CNP) fraud protection and Strong Customer Authentication.
If you are interested to find out more come visit us this Thursday the 5th of May at the Australian Payments Innovation Forum or get in touch at: contact@isignthis.com
Australian Payments Innovation Forum:
http://www.australianpaymentsforum.com/APIF/index.htm
1] http://www.abnnewswire.net/lnk/05GU84N0
2] http://www.abnnewswire.net/lnk/8B2Q05P5
About iSignthis Ltd
iSignthis Ltd (ASX:ISX) (FRA:TA8) is a hybrid monetary financial institution and also a RegTech leader in remote identity verification, payment authentication with deposit taking, transactional banking and payment processing capability. iSignthis provides an end-to-end on-boarding service for merchants, with a unified payment, electronic money and identity service via our Paydentity(TM) and ISXPay(R) solutions.
By converging payments and identity, iSignthis delivers regulatory compliance to an enhanced customer due diligence standard, offering global reach to any of the world's 4.2Bn 'bank verified' card or account holders, that can be remotely on-boarded to meet the Customer Due Diligence requirements of AML regulated merchants in as little as 3 to 5 minutes. Paydentity(TM) has now onboarded and verified more than 1.5m persons to an AML KYC standard.
iSignthis Paydentity(TM) service is the trusted back office solution for regulated entities, allowing merchants to stay ahead of the regulatory curve, and focus on growing their core business. iSignthis' subsidiary, iSignthis eMoney Ltd, trades as ISXPay(R), and is an EEA authorised eMoney Monetary Financial Institution, offering card acquiring in the EEA, and Australia.
ISXPay(R) is a principal member of Mastercard Inc, Diners, Discover, (China) Union Pay International and JCB International, an American Express aggregator, and provides merchants with access to payments via alternative methods including SEPA, Poli Payments, Sofort, PRZ24 and others.
Probanx Solutions Ltd, a wholly owned subsidiary of iSignthis Ltd, provides API based access to CORE Banking solutions, SEPA Core, SEPA Instant and SEPA business scheme, for neobanks, banks, credit unions and emoney institutions, and provides a bridge to the Eurosystem's Central Bank of Lithuania's CENTROLink service.
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