electronic authentication: validating and verifying customer identities and bank details presented...
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Electronic authentication: validating and verifying customer identities and bank detailsPresented by: Stan Matthews & Scott Robertson13th November 2007
Making it easy for your customer
Streamlining business processes to improve customer interaction
Straight-through processingName and address capture
Electronic identity check
Credit check
Bank account validation
What is identity?
Attributed identity Name
Date of Birth
Collected identity Education
Employment
Biometric identityDNA
80,000 reported cases of Fraud 200680,000 reported cases of Fraud 2006UKPA had 16,500 known fraudulent applicationsUKPA had 16,500 known fraudulent applicationsUKPA issued 10,000 UKPA issued 10,000 2,500 fraudulent applications for Driving Licences2,500 fraudulent applications for Driving Licences5,000 Driving tests cancelled in 20055,000 Driving tests cancelled in 2005
Principles of eID Authentication
Electronic Identity Authentication
Proves your customers identity by comparing bio-graphical information given at point of
application against data held within authoritative databases……..
ID fraud prevention
ValidationProving an identity exists
VerificationProving the applicant is the owner of that identity
….does Stan Matthews exist?
….am I Stan Matthews?
How does it work?
Data InputName and Address validation
ValidationEstablishing the existence of a real world identity
VerificationPositive corroboration of identity and biographic details suppliedKey fraud indicators
Authentication
How does it work?
AuthenticateCapture Fields
Validated Name and Address
Date of BirthTime at addressFormer AddressesTime at these addressesMale or FemaleTelephone NumbersNo of DependentsBank DetailsOwner Occupier
PAF ER
NameAddress
Data Input
Yes No
70
Authentication Index
Authentication
Secure Internet Connection
Validation
Verification
Authentication
Breadth• No. corroborative matches
against data sources Depth
• How far back in time the record goes
Quality• Type of record and level of due
diligence performed in its creation
Authentication Index
“Business drivers”
Straight through processing
Web
Call Centre
Post
Consistent AML strategy
Risk based approach
Improved operational efficiency
Compliant
Reduction in fraud
Authenticate
Hosted, integrated or bespoke
Solution fast & easy to implement
Name & address verification on entry
Breadth & depth of Experian data
Data consistency and updates
Pre-configured authentication templates
Easy to use – improves business process
Scaleable Solution
Summary
Identity theft is growing problem
Paper based checks are flawed
Electronic checks are accredited
Ease of use and implementation
Integrated into existing applications
Electronic authentication: validating and verifying customer identities and bank details
Presented by: Stan Matthews & Scott Robertson
You are not alone:
75% of people in the UK have at least one Direct Debit commitment
98% of the UK workforce is paid by Direct Credit
1 billion extra Direct Debits to be processed each year by 2015
700 million extra Direct Credits to be processed each year by 2015
What can go wrong with DD and DC?
Rejections50 million Direct Debits and 2 million Direct Credits rejected each year
ImplicationsCosts - an average of £30 to fix each rejected payment
Customer experience
Loss of business
Lack of funds in the payee’s account
Mistakes on the Direct Debit mandate
Data entry errors
The account does not support Direct Debits / Direct Credits
Why do rejected payments occur?
How can we help?
“Since implementing BANK WIZARD we have virtually eliminated the problems associated with processing incorrect bank details. I would have no hesitation in recommending BANK WIZARD to any organisation processing large volumes of Direct Debits” Shelagh Osey, Financial Services Manager
Calculating the costsBaseline
Number of new DDI per month 10,000
Rejected payments (at 5%) 500
35% as a result of incorrect bank account information 175
Calculating the costsBaseline
Number of new DDI per month 10,000
Rejected payments (at 5%) 500
35% as a result of incorrect bank account information 175
Cost incurred per rejected payment (BACS) £30
Total cost to gym of rejected payments (£30 x 175) £5250
Calculating the costsBaseline
Number of new DDI per month 10,000
Rejected payments (at 5%) 500
35% as a result of incorrect bank account information 175
Cost incurred per rejected payment (BACS) £30
Total cost to gym of rejected payments (£30 x 175) £5250
Total number of lost customers (25% of 175) 44
Cost per customer £50
Loss of business (£50 x44) £2200
Calculating the costsBaseline
Number of new DDI per month 10,000
Rejected payments (at 5%) 500
35% as a result of incorrect bank account information 175
Cost incurred per rejected payment (BACS) £30
Total cost to gym of rejected payments (£30 x 175) £5250
Total number of lost customers (25% of 175) 44
Cost per customer £50
Loss of business (£50 x44) £2200
Overall monthly cost to the gym (£2200 + £5250) £7450
Total annual cost to the gym £89,400
Validating bank details
Growing industry
Minimise negative effect of rejectionsReduce costs
Improve customer experience
Increase revenue
QAS can help - BANKWIZARD