For the past year, it’s been nearly impossible to read a fraud prevention or compliance article without “RegTech” and/or “Machine Learning” in it. In this article, we are going to talk about both; specifically, how the new version of IdentityMind’s platform helps deliver on the RegTech and machine learning promise.
Guest blogpost by Travis Jarae, from One World Identity.
The first form of identity or individual consensus records dates back nearly 4000 B.C., with the Babylonians. We think they primarily used this for determining how much food they would need per person. Not much has changed since the Babylonians - we still use a census to determine macroeconomic decisions such as domestic social welfare needs and foreign aid.
Acquiring more customers and generating more revenue is the goal of all businesses. And, while the Internet has made this easier, not all sectors have moved forward at the same pace. For instance, ecommerce companies have led the charge, while Financial Services institutions are still catching up.
You can have an amazing product or service, but without customers your offering won’t survive. In order to have access to your offering, new customers must be onboarded.
The ability to add new customers online while protecting your business from fraud and meeting regulatory requirements is both a necessity and a competitive advantage to any company providing financial services. Traditional financial institutions, remitters, and FinTech companies on-board clients online; especially considering that globalization allows all companies to expand their client base, foregoing the geographical and brick and mortar boundaries that once upon a time constrained your business from growing. Document verification is fundamental to address the identity verification requirements to serve millennials, foreign nationals, foreigners, etc.
Following the 2008 Global Financial Crisis, regulators and policymakers set out to prevent future similar financial crashes. The initiative, however necessary and noble, had unintended consequences, exponentially increasing the compliance burden of financial institutions, increasing the industry requirements and making it difficult for it to serve consumers as intended. Enter Regulatory Technology or RegTech.
FinTech is all about solving financial services problems in new ways. Some of these problems may be about providing access to financial services to groups in which banks have previously shown little interest. Or maybe it is about taking a typically clunky loan process and simplifying it to the point where customers can be instantly approved while sitting in their favorite chair at home. Or maybe it is about moving financial services to a more convenient place like an app on a mobile phone.
Two weeks ago we were granted a patent in our core technology, Electronic DNA™, eDNA™ for short, the engine behind the creation of Trusted Digital Identities. We are thrilled!