Industries: Fintech, Financial Services
Use Cases: KYC, Fraud Detection
Solution: Incode Omni
- Enhanced Customer Experience: Simplified remote access to loans and financial services.
- Streamlined KYC: Efficiently verifying client identities for smoother user experiences.
- Robust Identity Verification: Utilizing AI-driven technology to detect and prevent fraud.
Fintonic, a provider of app-based personal financial management tools and personal loans, sought to enhance its services by ensuring efficient Know Your Customer (KYC) and Fraud Detection for their clients. With a user base exceeding one million in Mexico, Fintonic’s personal finance platform simplifies financial management by integrating multiple bank accounts, insurance policies, and credit cards into a single, user-friendly interface.
Recognizing the importance of seamless KYC verification, Fintonic Mexico forged a strategic partnership with Incode Technologies, Inc., the leading provider of world-class identity solutions. Through this collaboration, Fintonic aimed to optimize the user onboarding and verification processes, making it easier for clients to access loans and manage their finances remotely.
Loan applications extended through traditional lenders such as banks are subject to the relevant AML laws and KYC regulations. Alternative lenders who offer loans online are not exempt from these requirements, although what is required may vary by loan product. The best practice to avoid fraud is to follow AML and KYC policies regardless of what product is being offered.
With the rise of online transactions, the need for an efficient Know Your Customer (KYC) process has become paramount. KYC verification is the process used to confirm customers’ identity, check customer information, monitor transactions, and assess risk. It includes a wide range of procedures for tasks such as verifying identification documents, capturing data, obtaining digital signatures, assessing risk, authenticating account access, and preventing fraud.
Fintonic set out to transform their personal finance platform into a fintech powerhouse with top-notch anti-fraud technology and an unparalleled user experience. In the past, they had encountered numerous identity verification issues, with a staggering 30% failure rate in IDs and face matches using alternative technology vendors. These challenges stemmed from issues such as unclear photos and too complex vendor solutions, notably leading to incomplete verifications and friction during the Know Your Customer (KYC) phase and frustrating users.
Incode, renowned for its rapid and precise solutions, emerged as the ideal choice to enhance Fintonic’s identity verification process. Incode’s standout qualities included:
- User-Friendly Experience: Simplifying user onboarding across geographies.
- Effortless Integration: Quick and easy implementation.
- Comprehensive Solution: All-in-one identity verification and anti-fraud tech.
- Reliable Support: Backing Fintonic every step of the way.
Incode developed and seamlessly integrated its Incode Omni’s KYC and Fraud Detection solution within Fintonic’s platform. This integration enriched Fintonic’s system with advanced functionalities, including geolocation tracking, user behavior analysis, and access to government databases, enhancing its fraud detection capabilities.
Powered by one of the most secure, fully in-house developed Passive Liveness Detection Technology, Incode’s identity verification and fraud prevention solution protects the entire customer lifecycle.
This solution enables swift and precise comparisons between the user’s selfie and the photograph stored in the official government INE database. Additionally, it facilitates INE Data Verification by automatically extracting all pertinent information from the identity document using Optical Character Recognition (OCR) Technology. Incode’s Machine Learning (ML) model further improves efficiency by swiftly comparing the user’s selfie with images stored in the database.
The solution has been successfully rolled out in Mexico.
• Streamlined Regulatory Compliance
Incode helped Fintonic navigate the complexities of the AML and KYC compliance and provided them with the technology tools to support a range of automated tasks, including:
- Real-time ID verification of identity documents presented by new customers;
- Capturing data such as scanned OCR text and photos to be used for biometric facial identification;
- Ensuring that digital signatures are collected in a way that meets legally binding standards.
- Incode offers a comprehensive, AI-powered KYC solution that includes CIP, CDD, EDD, eKYC, sanctions, PEP, and more.
• Advanced Fraud Detection
Optimally positioned to capture up to 99% of fraud, Incode Omni with Passive Liveness Detection Technology provides bank-grade security and offers a robust way to verify identities by combining multiple factors. It matches a live face against the face on an identity card, validates and examines the risk factors associated with the personally identifiable information, and allows for capturing an individual’s geolocation.
• Effortless Integration
Incode Omni is specifically engineered for smooth incorporation into an organization’s existing KYC and AML workflows, offering developers the flexibility to customize solutions to their precise needs. Incode effortlessly integrated its solution within Fintonic’s platform, proving its high adaptability. The implementation has progressed exceptionally well.
• Better Customer Onboarding Experience
Incode’s KYC services and technology speed up customer identity verification procedures, a critical factor in loan applications. This not only improves the customer experience for loan applicants but also contributes significantly to nurturing a positive reputation for Fintonic in the competitive fintech landscape.
By collaborating with Incode, Fintonic optimized their personal finance platform, making it easier for clients to access loans remotely while adhering to regulatory requirements.
Incode brought its expertise in advanced identity verifications to the table, enabling Fintonic to ease the friction in the KYC process, enhance security, and improve the overall user experience. This partnership not only benefited Fintonic’s existing user base but also positioned the company for further growth and innovation in the competitive fintech landscape of Mexico.
Incode is the leading provider of world-class identity solutions that is reinventing the way humans authenticate and verify their identity online to power a world of digital trust. Incode’s revolutionary identity solutions are unleashing the business potential of universal industries including the world’s largest financial institutions, governments, retailers, hospitality organizations, and gaming establishments by reducing fraud and ultimately, transforming human interactions with data, products, and services.