contego fraud solutions ltd fin tech week 2014
TRANSCRIPT
Data and Risk Management:A Match Made in FinTechAdrian Black: CEO, Contego Fraud Solutions Ltd
27 March 2014
Risk&
Data
A RiskTypology
Market Risk
Credit Risk
Liquidity Risk
Operational Risk
Legal & Regulator
y Risk
Business Risk
Strategic Risk
Reputation Risk
So what do we mean by “risk”?
• The best companies manage risk by taking a holistic view of all risks faced by the enterprise
• Once risk factors are understood, businesses run, and regularly re-run, risk assessments of each risk factor
• Risk assessments used to evolve systematic procedures to reduce likelihood and impact of key risk factors
A RiskTypolo
gy
Market Risk
Credit Risk
Liquidity Risk
Operational Risk• Fraud
• Inefficiency
Legal & Regulator
y Risk• Complian
ce failure
Business Risk
Strategic Risk
Reputation Risk
So what do we mean by “risk”?
• The best companies manage risk by taking a holistic view of all risks faced by the enterprise
• Once risk factors are understood, businesses run, and regularly re-run, risk assessments of each risk factor
• Risk assessments used to evolve systematic procedures to reduce likelihood and impact of key risk factors
Some key FinTech risks
Fraud• The annual cost of fraud to the UK economy is huge• Fraud losses can damage, cripple and kill companies• Too many think fraud only happens to the guy next door
Operational Inefficiency• Must be efficient to compete, survive & maximise returns• Back-office processes often lag behind revenue growth and create
performance drag
Compliance Failure• Severe penalties for compliance failure in regulated businesses• Reputation damage can be severe
Opportunity:aggregate and leverage data
to reduce these risks
£52bn
So what data should you leverage?
Real-time lookup & risk
scoring
Your InternalData
Fraud Markers& Watchlists
Best of breedcommercial data
People & CompaniesLaw
EnforcementIntelligence
Open Source dataYou’d be amazed!
Fraud Forums, Trade Associations
& PeersShared intelligence
YourInterna
l Systems
Why? – To reduce risks• Improve compliance• Reduce fraud• Improve efficiency• Lower IT, data &
other costs• Protect reputation
At Contego we aggregate everything we can
The Contego solution
Goal: tap into the universe of data to bring efficiency and certainty to clients seeking to
reduce risk
• Aggregate best-of-breed data on people, companies & other entities
• Provide real time due diligence & risk scoring• Enhanced KYC, Identity Verification & ID document checks• Case management module & encrypted cloud storage
• Clients select any combination of:• SaaS Console for management & manual checks• API for full integration into client systems• Customised & branded onboarding forms
Contego Case Study: Regus
Requirements• Compliance: with Money Laundering Regulations & London Local Authorities Act• Fraud: detection of high risk & fraudulent new clients• Efficiency: improve efficiency of client onboarding & compliance processes• Intelligence sharing: screen against trade association & law enforcement intelligence
Solution• Customised application form for all clients (limited company, sole trader, etc)• Automated risk scoring, identity verification & compliance checks• Management console to process “refer” results & perform deeper due diligence• Secure upload, scanning & storage of ID documents as part of “compliance pack”
Aggregated Data used to reduceOperational, Regulatory & Reputation Risk
A final word: Intelligence Sharing
• We know that sharing intelligence reduces collective risk
• Law Enforcement Agencies will share intelligence to reduce harm• Preventing fraud, money laundering & terrorist financing counts
• Data Protection Act is not a barrier if data used & handled correctly• DPA is wrongly used as an excuse not to share intelligence
• Using a trusted partner can help• To analyse & transform data into actionable intelligence• To ensure information security to a certifiable level• Encryption & other security measures are important
• Reciprocal intelligence sharing benefits all participants• It’s not a zero-sum gameSo don’t hoard intelligence:Share it for the collective
good!
Thank you – any questions?
[email protected] Black
Contego: Manual Console