ID Insight was featured in a Star Tribune business section feature from Neal St. Anthony, highlighting the company’s “crafted” approach to data solutions for financial institutions seeking to identify and eliminate fraud.
Read the full article: ID Insight helps financial institutions pinpoint account theft
Cutting-edge technology combines unprecedented search engine functionality and speed with heightened data security
Over the course of just a few hours in September, anti-fraud technology leader ID Insight was awarded a patent for its cloud-based encrypted search technology and honored for the technology as a finalist in Minnesota’s 2016 Tekne Awards. The patent and recognition are the culmination of years of innovation, collaboration and product development focus for ID Insight and positions the Minneapolis-based company for its next growth phase.
ID Insight’s search technology incorporates a Google-like search experience with government-grade security, a combination that has never before been available to companies. By combining a highly secure encryption package with the latest advancements in inverted indexing technologies, ID Insight now offers the same functionality as the world’s best-known search engines, while enabling companies to keep highly sensitive personal identifying data encrypted. ID Insight was awarded Patent No. 9,449,178 for Systems, Method and Computer Product for Fast and Secure Data Searching on Sept. 20. The company holds two additional patents.
According to ID Insight President Adam Elliott, this technology was developed in response to a customer’s need for an innovative solution that delivered both speed and security. A financial services company needed a “Google-like” search experience for accessing sensitive encrypted data. “Up until now, companies had to choose between speed and encryption when accessing sensitive data in the cloud,” Elliott says. “While there have been some attempts at enabling this capability, we were able to crack the nut on it through our patented approach of enabling new developments in inverted indexing technology.”
This technology is one of several recent cutting-edge product and platform innovations that have been developed in collaboration with current ID Insight customers and partners. “We are extremely proud that the Fortune 500 corporations we work with continue to demonstrate increased confidence in our relationship and our company’s ability to innovate and execute new ways to help them solve their largest business challenges,” Elliott says.
This technology is integrated into ID Insight’s fraud prevention SaaS platform. In August, the company announced enhancements to its platform to help a wide range of financial institutions reduce fraud losses and improve compliance processes. The expanded platform includes account profile information beyond address verification – such as phone, email and IP address verification – to help customers verify profile changes in an increasingly complex fraud environment. ID Insight customers use this technology every day for searching and reviewing high-risk activity and alerts all while securing the underlying sensitive personal data.
Hours before the patent was issued, the Minnesota High Tech Association named ID Insight a finalist in the 2016 Tekne Awards due to this break-through technology. This is ID Insight’s third nod as a finalist in the Tekne Awards, which celebrates leading-edge innovation and technological advancement in Minnesota; it was also named a finalist in 2009 and 2010. This year, ID Insight is a finalist for the Applied Analytics Award, which honors innovative applications for turning data-driven insights into improved business processes or outcomes. Winners will be announced on Nov. 16.
For more information, visit www.tekneawards.org.
About ID Insight
Established in 2003, ID Insight helps companies prevent fraud, reduce costs and capture more business by combining its massive collection of data on identities and profile changes with predictive scoring algorithms. ID Insight provides highly configurable verification, authentication, market research and fraud prevention solutions to financial services companies, credit issuers, retailers, online merchants and telecommunications companies.
“Why are 25 people from all over the country moving to a vacant lot in Brooklyn?”
Adam Elliott not only asks questions like that, his company, ID Insight, was founded on designing algorithms that can help companies like banks ask such questions, in an automated fashion.
Elliott explains that the sheer volume of data breaches in recent years has stocked the shelves of the “dark web” and other sources of illegally obtained consumer data with a massive supply of raw material.
Read Full Article: Banking Exchange: Beware address hijacking.
New enhancements protect phone and digital communications channels
Anti-fraud technology leader ID Insight today announced the most comprehensive update yet to its fraud prevention platform, responding to the industry’s need for a more robust solution for verifying identity profile changes in an increasingly complex, multi-layered fraud environment.
ID Insight’s new solution will help a wide range of financial institutions reduce fraud losses and improve compliance processes while achieving a more than 10-to-1 return-on-investment ratio through more efficient customer profile-change verification processes. The company, which maintains the largest proprietary database of financial service customers’ address changes, is countering a shift in financial fraud that exploits non-monetary setup events – such as phone and email changes – as a precursor for account takeover.
“ID Insight started more than 13 years ago to fill a specific market need: fraud prevention related to address changes,” said Adam Elliott, founder and president of ID Insight. “As the illicit business of financial fraud continues to evolve, so have our solutions.”
The shifting fraud landscape and a specific customer need for better intelligence about phone number changes inspired ID Insight’s latest platform expansion. An ID Insight customer – and one of the country’s largest financial institutions – reported a sharp rise in account takeover cases where fraudsters first changed a customer’s phone number before requesting a large ACH transfer. When the bank called to approve the transfer, the identity thief answered the call, posed as the legitimate customer, and falsely verified the request. In response to this scheme, ID Insight leveraged its extensive profile-change database to tailor a solution that also included phone, email and IP address verification.
“Our customer’s urgent need reflects how account profile information beyond addresses are all emerging as setup events for account takeover,” Elliott said. “Without a solution for fraud identification for all pieces of customer information, financial institutions may be unwittingly sending account verification details and fraud alerts directly to criminals.”
With the rise of mobile banking, online account opening and mobile wallet technologies, mobile phones and computers are vital communications channels for both customers and financial institutions. Having controls in place to ensure that phone numbers, email and IP addresses in the customer profile actually belong to the legitimate customer is critical to reducing fraud risk.
Despite advancements in point-of-sale transaction security, financial institutions are more vulnerable to fraud than ever before. Data breaches have made consumer identity data available in bulk on the black market, exposing more and more customers to account takeover and leaving banks open to fraud losses. ID Insight’s expanded solution helps defend against these attacks by using data and analytics to separate fraudulent profile changes from legitimate customer activity, while significantly improving fraud detection rates.
The updated solution also allows customers to accept data via a flexible API, run the data through a configurable flow based on risk, business process and cost requirement, and return results that the client can act upon for fraud investigation and compliance. ID insight solutions are also easily accessible through many of the nation’s core banking platforms.
Historically, ID verification solutions have been deployed to verify a consumer’s identity. Whether it is a new loan application, credit card application, new checking account or other, the financial institution has relied on ID verification solutions to confirm that the applicant’s identity credentials are correct. Verifying this information stems from a critical need to combat identity fraud, as well as to meet various compliance needs such as Bank Secrecy Act, Patriot Act and the Fair and Accurate Credit Transactions Act (FACTA).
However, over the past few years, it has become much more difficult to do because of the explosion in data breaches. According to the Identity Theft Resource Center (ITRC), there were 781 reported data breaches that left more than 169 million identities vulnerable in 2015 alone. The ITRC also found an additional 489 breaches through June 21, 2016. When an identity has been breached and the fraudster is using the victim’s identity credentials to attempt to open a new account, traditional ID verification solutions are simply confirming that the fraudster has the correct credentials.
Playing the “match game” is not a fraud prevention strategy
When consumers apply for a new loan, deposit account or other financial account, they typically provide their name, address, social security number (SSN) and date of birth (DOB). As part of the financial institution’s fraud and/or compliance strategy, the FI attempts to verify that the information provided is correct. When you look at the individual data elements, the match rates for Name, SSN and DOB are typically very high, sometimes approaching 100 percent. Why? Because the verification solutions compare these credential to what is maintained at the credit bureaus. When you consider that consumer’s name, SSN and DOB rarely change, it makes sense that these credit worthy consumers will “match” to these identifying identity credentials at the credit bureaus.
Also, as we discussed, if the identity has been breached, we would simply be verifying that the fraudster has the correct credentials of the victim.
However, when it comes to address, it is a very different story. Every year 15-20 percent of consumers will change their address. On top of that, the credit bureaus are notoriously slow at updating a consumer address. As such, the address verification rates are typically much lower. Typically, 75-80 percent of new account applications will “match” on address to the credit bureau or other verification sources. This leaves 20-25 percent of all credit worthy applications that need to be resolved.
Address changes are a top set-up event for fraud
From an identity fraud perspective, address is the key. When the fraudster has a compromised identity, they can and do use the correct name, SSN and DOB of the victim. However, when it comes to address, they don’t list the victim’s address. They list the address that they control. Why? Because, when the account is approved, they want to ensure that all credit cards, debit cards, checks, and statements are delivered to that address – not the victim.
To compound this issue, the Fair and Accurate Credit Transactions Act (FACTA) Red Flags now require financial institutions to resolve these address discrepancies before opening the account. This new regulation was put in place exactly for the reason we just covered. Because this is precisely how fraudsters open up new accounts in the victim’s name.
So we have two issues to tackle: identifying whether an address belongs to a legitimate customer, and verifying whether that address matches the rest of the customer information on file. Address discrepancies are the biggest pain point of any ID verification solution as it drives so many mismatches and it is where the identity thieves are hiding.
The standard approach is to take these mismatches and use manual methods to resolve them with other verification sources, for instance, using the white pages and confirming the name to address or other sources. Typically this can resolve up to 50 percent of address mismatches. The end result is very high manual review costs and, more importantly, this still leaves up to 10-13 percent of applications in an unresolved state. Financial institutions understand that the vast majority are good and valuable applications, but are unable to open the accounts due to compliance reasons. Historically, this issue has been perceived as a “cost of doing business.”
However, this does not have to be the case. We understand that doing a much better job at understanding and verifying the address issue is the key to the next generation of ID verification solutions. No longer is it viable to verify the name, SSN and DOB and fail on address. If financial institutions continue to treat this issue as a “cost of doing business,” they will continue to decline good accounts while leaving the door open to identity theft and fraud.
So how can we do it better?
The first thing we need to focus on is having more data related to address. The most important data needed is new mover information. When a consumer moves, if we can identify that move as soon as it occurs, then our address verification rates will go up significantly. Traditional ID verification hits every available public source of new mover data such as utility directories, National Change of Address (NCOA), etc. However, this still leaves a large gap. Why? Because these directories are not always up to date. Also, only about half of consumers actually report an address change through the NCOA process.
So how do we get better new mover information? This is exactly what we have been doing at ID Insight for over 10 years. In addition to hitting all of the standard public sources that all traditional ID verification solutions access, ID Insight maintains a comprehensive, up-to-date database of new mover information. Each day, over 500 financial institutions report new address changes to us simultaneously as customers request address changes. They do this to screen their customer portfolio for potential account takeover.
Because ID Insight sees address changes before other sources, we are able to increase our address verification rates by 15 percent or more compared to traditional ID verification solutions. This results in booking significantly more new accounts while reducing the costs of manual intervention.
In addition to verifying more addresses through superior data, solving the problem also requires scoring. The traditional “match” indicators are important, but there is so much more to understand – especially with respect to address. When you think about a nine-digit SSN and what it tells us, we can only determine if it matches, and we may be able to determine if is associated with a dead person. Similar situation with a name or a date of birth. And as we discussed – if it is the victim, then we are only confirming that the information matches.
But when it comes to address, there is additional context to consider. Beyond verifying, we can understand if it is a business or a residential address, we can determine the value of the property, whether it is an apartment, whether it is a rented mail box and so on. Just as a simple example, we know that rented mailboxes are a favorite address for fraudsters. The typical fraudster loves anonymity. They are committing fraud and because of that, they tend to list various anonymous, nomadic addresses –places where they can set up shop, commit the fraud and vacate as fast as possible. As we like to say, they are answering the door when the Postal Inspector shows up to make the arrest.
Now that we have the best verification data available and have ascertained everything there is to know about the address, we can go beyond all of the raw information and score every transaction for the likelihood of fraud or identity theft. Much like a credit score, we can rank every transaction we see. Banks and credit unions can then use the score as the anchor of their compliance and fraud strategy. By focusing their investigative resources on the highest risk transactions, financial institutions are able to verify many more good accounts while significantly reducing fraud. Our typical customer is able to resolve and approve 90-95 percent of all address discrepancies. The end result is more profit, less fraud and lower costs.
To summarize, closing the gaps of traditional ID verification caused by address discrepancies can be achieved by:
- Accessing relevant, recent and proprietary address change data–better data coverage means better verification rates.
- Scoring new account applications to resolve address discrepancies in an automated way that allows financial institutions to approve more accounts, reduce fraud and comply with FACTA Red Flag rules.
Knowing where people live is the single most difficult part of any ID verification solution, and ID Insight’s proprietary address change database allows us to resolve this problem.
New board members bring specialties in finance, tech to growing anti-fraud company
Anti-fraud technology leader ID Insight announced two new additions to the company’s board of directors. Longtime finance and technology executives Tim Becker and Ted Crooks each bring more than 20 years of experience in accounting, payments, big data, fraud prevention and business development to the ID Insight board.
“Our newest board members embody the spirit of innovation and bring talent, expertise and energy to the table,” said Adam Elliott, chief executive officer for ID Insight. “We are very fortunate to have them by our sides as we continue to expand our product portfolio and grow the company.”
Tim Becker is founding principal of Lighthouse Management Group and has worked with client organizations in industries as diverse as transportation, food, retail, technology and real estate. His client list includes public and private companies with annual revenues up to $600 million. Becker is a founding director of the Minnesota Chapter of the Turnaround Management Association and is a Certified Turnaround Professional (CTP). He is also a Certified Public Accountant (CPA) and a member of the Minnesota Society of CPAs and the American Institute of CPAs. Previously, Becker was a senior manager with Ernst & Young, where he led efforts to establish the firm’s restructuring and reorganization practice in the Minneapolis office.
Ted Crooks is principal of Crooks’ Analytics, where he provides consultation and system architecture for payment system operators, providers and developers. His work spans big-data and machine-learning projects and product designs, risk-management policy development and market planning, vendor representation, and new technology for internet and mobile commerce. Prior to starting his own firm, Crooks served as vice president of products at Global Analytics, Inc., and vice president of global fraud solutions for Fair Isaac Corporation. He has also authored three books on computer science topics and holds several patents in robotics, natural language applications and fraud detection systems.
“Ted and Tim are two of the most creative and intelligent forces at work in the business and technology fields today, and they will certainly help ID Insight continue its growth and momentum,” Elliott said. “We’re eager to begin working together.”
Much has evolved since the enactment of the Bank Secrecy Act, and the majority of financial institutions have a relatively simple process when it comes to ID verification. While this process is straightforward and meets compliance requirements, it is by no means optimal.
Let’s take a look at the two huge problems with today’s ID verification solutions: 1) believing matching is a silver bullet, and 2) not effectively resolving verification failures due to the mailing address.
Matching is NOT a Silver Bullet
Matching identity credentials to external databases reduces fraud and identity theft risk, but by no means eliminates it by itself. With massive data breaches, consumer identity data is available in bulk on the black market, exposing more and more customers to new account fraud. According to the Identity Theft Resource Center, there were 781 reported data breaches that left more than 169 million identities vulnerable in 2015 alone.
With more compromised identities in the marketplace, the criminals are able to purchase the actual “match key” to evade ID verification systems that rely on matching only. As you can imagine, it’s pretty easy for the identity thief to fill out a new account application that matches together the name, address, and Social Security Number (SSN).
The implications for a match-only ID verification process are most troubling when a physical card is not required to access the funds (e.g., online ACH products). When the criminal does need the card, then the mailing address comes into the picture.
Address Verification Failures
Traditional ID verification systems typically do a great job of taking the name, SSN and date-of-birth (DOB) that is provided on the application and matching them to verification sources such as credit bureau headers, phone directories, utilities databases and other public sources. Most ID verification vendors utilize similar data sources and therefore deliver similar match rates. Because SSN and DOB don’t change and names change infrequently, verifying names to SSNs is really not that difficult—the static nature of the data leads to match rates that often exceed 90 percent if matching is good.
Mailing addresses are a different animal. Because of the 15-20 percent of Americans who move each year, verifying a name to an address is much trickier. When legitimate consumers move, banks who are bureau focused are much less likely to find them in any external database with the new address. This can result in 10 to 40 percent of all credit-approved applications failing on the mailing address component of ID verification—credit issuers and regulators refer to this problem as “address discrepancies.”
These address discrepancies are a major problem for financial institutions. Before the Fair and Accurate Credit Transactions Act (FACTA) was put in place in 2008, many credit issuers played the odds and approved accounts even if the application address did not match the address on the credit bureau report. FACTA no longer allows this “fraud toleration approach” in order to protect consumers from identity theft–so even if an issuer felt like they could tolerate the losses based on a low fraud rate, it’s no longer an option.
To comply with FACTA, most issuers simply deploy a standard ID verification system to form a reasonable proof of identity. While this process solves for compliance, it is not even close to being optimal from a business perspective. When consumers legitimately move and an address discrepancy occurs, standard ID verification tools only resolve about half of the cases.
What happens to those applications where the standard tools can’t resolve the discrepancy? Some issuers do little or nothing with the unverified discrepancies. That is, if they can’t verify the consumer, they simply decline the applicant, resulting in the loss of many new customers. More commonly, issuers have implemented processes such as running address discrepancy applications through “out-of-wallet” solutions, conducting manual reviews and even reaching out to the customers directly. These approaches are very costly and result in too many legitimate customers either abandoning the process or being tagged as “unverified” and not booked.
Besides compliance rules, let’s not lose sight of the fact that address discrepancies are indicative of fraud—that’s why the regulations were written in the first place. The criminals still need an alternate address to complete the new account fraud scheme, so they can receive the credit card or debit card instead of the victim. Preventing these fraud losses using traditional ID verification processes is difficult to manage profitably: high intervention costs combined with low fraud incident rates can easily put issuers upside-down.
In our final post of this three-part series, we’ll tell you how to overcome the problems and close the gaps associated with current ID verification solutions.
Not long ago, verifying the true identity of customers meant that financial institutions ran an off-the-shelf ID verification (IDV) solution and simply confirmed that all the identity credentials presented had been seen before. If the information checked out, then it was business as usual.
For more than three decades, legislation of the financial services sector designed to combat criminal money laundering, terrorism and, more recently, to address identity theft, has required financial providers to implement procedures to track customer information. While the financial services industry has grown much more sophisticated in developing systems and solutions to minimize fraud and criminal activity, fraudsters have also been able to morph and adapt their tactics to defeat these systems.
Fortunately, new tactics and procedures are now being developed to address the changing fraud landscape. But in order to understand where ID verification is going, it is important to begin with its history.
The Simple Beginnings
In 1970, the Foreign Transactions Reporting Act, known as the Bank Secrecy Act (BSA) provided the first regulation of bank practices aimed at curbing money-laundering activities. The BSA established record-keeping and reporting requirements for individuals, banks and other financial institutions and required that banks have a Customer Identification Program (CIP) that is appropriate for their size and type of business. As part of the CIP, banks were required to use documentary or non-documentary methods of identification to form a reasonable belief that it knew the true identity of each customer. For most banking institutions, this meant that when a prospective customer came into the branch to open a new account, the account opening representative simply got a copy of a driver’s license and dropped it into a file. It wasn’t a sophisticated solution, but it was effective enough at the time.
The Internet and being “Not Present”
The next evolution in the ID verification market came in the mid to late 1990’s with the advent of the Internet and the subsequent dot-com explosion. The banking industry realized that there would now be millions of “Not Present” transactions, as the customer would no longer be present at the bank branch; they would now be sitting at the other end of a computer connection. As an industry, banks realized they would still need to “know the customer” even though they were not physically present.
This need gave way to new forms of electronic IDV. Instead of comparing identity credentials to a physical document (such as the driver’s license), IDV solutions emerged to compare identity credentials with a separate known repository of those same identity credentials. Typically, this meant electronically verifying that the identity credentials matched these same credentials at a credit bureau. If the name, social security number and date of birth all matched, presumably that was the correct individual and financial services companies would be in compliance with BSA and the CIP requirements.
Then, just as the Internet had done in the 1990s, the September 11 attacks changed everything again in the 2000s.
9/11 Ups the Ante
Up to this point, IDV systems and solutions focused on combatting fraud and organized crime. With 9/11, however, the world of IDV changed once again. Suddenly it became about protecting ourselves from terrorism. In the days after the attack, Congress enacted the USA PATRIOT Act, placing even more scrutiny on the individuals and organizations banks were doing business with. This was based on the realization that many of the 19 hijackers had successfully opened and maintained banking accounts at some of the largest banking institutions in the country. The fact that the terrorists had opened those accounts using false and fictitious information was difficult for banks to swallow. IDV solutions were no longer about saving a few bucks, but protecting the home front.
Identity Theft Epidemic
Then, starting in 2003, identity theft became front-page news, rising at a rate of 30 to 40 percent annually with one in 20 consumers being impacted. While this was alarming to the average consumer and certainly newsworthy, it really didn’t register for financial institutions as a major problem, as identity theft still represented a relatively small financial liability.
In talking to victims of identity theft, a common theme began to emerge. Repeatedly, victims described how identity thieves had used their identifying information to open up new accounts in their names. They would apply for credit instruments using the victim’s correct name, social security number and date of birth. However, the thieves would then alter the physical address on the application. Why? Because when it was approved, the corresponding credit cards, debit cards, and statements would be delivered to the thief and not the real person.
This rise in identity theft gave rise to the Fair and Accurate Credit Transactions Act (FACT Act) of 2003, which added several new sections and amended the Fair Credit Reporting Act of 1970. With regards to this address loophole that the criminals exposed, Section 315 of the FACT Act now required that financial institutions resolve these address discrepancies.
In our next post in this three-part series, we’ll examine the current state of ID verification and assess the challenges and gaps most frequently encountered with existing ID verification solutions.
Opening up a new checking or savings account at a bank or credit union has been and remains a common and fairly simple process. Typically, the consumer fills out an application and provides identification such as a driver’s license. Then the bank does a bit of research to make sure the consumer isn’t a fraudster and hasn’t abused checking or savings accounts elsewhere.
This process is not treated with the same scrutiny of opening a new credit card account or a loan, nor should it be. The risk and potential loss is much less on average. When assessing the process, it can be broken into three components: risk, fraud and compliance. Financial institutions need to understand the risk associated with the account, manage the potential fraud and also make sure they are compliant with all necessary regulations.
On the risk side, the information solutions are very mature. Virtually all banks and credit unions use ChexSystems, Early Warning (EWS) or credit bureau solutions to understand the risk associated with a customer. In addition to managing risk, financial service companies have deployed solutions to meet their fraud detection and compliance needs. When talking to bankers about the new accounts desk these days, it can be a pretty sleepy subject. The typical banker does not want to think about the new accounts desk, make changes to the new account desk platform or think about bringing a new vendor into the picture.
However, this is beginning to change dramatically. There are a variety of market forces driving this change and the industry is going to see some massive shifts in new account decisioning. While it can be a sleepy subject, checking and savings accounts are still the anchor accounts used to build deeper and more lucrative customer relationships.
CFPB Having Impact on Risk
The Consumer Financial Protection Bureau (CFPB) has been very active recently, strongly suggesting that banks provide banking options for everyone. In addition, they are warning banks to be wary of using what they call “negative lists” such as ChexSystems and EWS to open accounts, claiming the data is not always correct. The CFPB is making these recommendations and the banks are following suit. Some banks have gone so far as to shut off all access to negative databases. Additionally, banks have already started to create new low-risk products that will allow anyone to open an account.
This is changing the paradigm of the risk component. Whereas the negative databases and bureau information historically has been used to accept or decline accounts, it is increasingly going to be used to assign the right product. The value of the data itself has shifted, from a negative impediment to new account decisioning to a positive source of marketing intelligence. Financial institutions that are able to manage the early lifecycle of the account stand to win.
Despite the CFPB’s initiatives to increase access to financial services for all, financial institutions are not obligated to do business with fraudsters. Fraud continues to be a top-of-mind issue and will receive even more focus – especially as the ability goes away to use risk data (non-fraud) for straight-up declines. There is an emerging need for much more sophisticated fraud solutions given the abundance of consumer identity data on the black market and the increased sophistication and complexity of these fraud schemes.
Like fraud, compliance is not going away and will continue to be a primary focus. Meeting and exceeding all compliance needs is mandatory. Appropriately screening against terrorist and other watch lists, running Identity Verification, complying with FACTA Red Flag rules is paramount.
Online Account Opening
More and more banks are allowing and encouraging consumers to open up new accounts over the internet. To do so requires more security and fraud solutions than in the branch. As such, banks are typically investing more in the digital channel than in their legacy branch systems, including the new account opening process. It stands to reason that at some point, these new, security-rich online new account platforms and legacy branch platforms will eventually merge, with the online platforms being the winner. This is already happening. For some mega banks, when you walk into the branch – instead of having the banker collect the application and the identification, the banker is directing them to an iPad where they capture an image of the driver’s license, populate the application electronically and the submit through their online account opening system.
The Vendor Landscape
A continued focus on security, regulations and data breaches are going to place an increased burden on banks with respect to vendors of these solutions. Five years ago, getting a new vendor through the process was relatively easy. These days, that is not the case. Getting a new vendor set up and approved can be a very lengthy and difficult process. This will put additional pressure on the vendor landscape. Expect to see more mergers and acquisitions to leverage existing vendor relationships. This will drive even more business to a bank’s core processor. Accordingly, companies like Fiserv and FIS can expect to continue to grow their businesses by solving their customer’s ongoing problems.
The new account desk of the future may look substantially different when compared to its current incarnation. Online and branch platforms will continue to consolidate, with the more secure online platforms being the winner. Nearly every new account will be opened but with a special emphasis on “putting consumers into the right product” from day one. Fraud and compliance solution needs will continue to expand and evolve, and regional and community banks will continue to look to their core processors for these solutions.
Despite everything that’s changing at the new accounts desk (or the virtual desk), the principles and objectives stay the same – make smart, information-driven decisions to manage risk and cover compliance while pursuing financial success and customer satisfaction. Easier said than done!
ID Insight’s Adam Elliott provides his expert opinion in an InformationWeek article titled ‘8 Reasons To Consider Insights-As-A-Service.’ In his interview with Lisa Morgan, Elliott asserted, “There’s so much changing with security, regulation, and compliance you need more than a shrink-wrapped data engine.” He also highlighted that ID Insight refers to its offering as “Decision-as-a-Service.”