Contributed by Jing-Wei Lim, Chief FinTech Officer
Traditionally, compliance has been a tedious and time-consuming process, requiring manual checks and reviews of transactions and documents. However, with the help of AI and biometrics, compliance is now much more efficient and effective.
In an article by PaymentsJournal, published on 23 March 2023, latest insights are provided on the trends shaping the payments space. It describes how Artificial Intelligence (AI) and biometrics technology revolutionize regulatory compliance in FinTech and Banks by providing more accurate and efficient methods of identifying and preventing fraudulent activity as well as streamlining compliance processes. PaymentsJournal is published by Mercator Advisory Group, the leading U.S. payments research and consulting firm.
Financial Institutions (FIs) are increasing the use of non-face-to-face (NFTF) measures and technologies as part of their Customer Due Diligence (CDD). The use of new technology solutions such as biometrics technologies and document authenticity verification tools have the potential to improve effectiveness and efficiency of the NFTF CDD processes as well as to enhance the customer experience.
Biometrics technology typically requires an individual to take a selfie photo and ID document. The digital algorithm will then be deployed to match the face of the selfie against the ID document. This reduces the risk of impersonation. On top of that, the solution also uses document authenticity verification tools to analyze the security features embedded in the document against databases to detect fraudulent or tampered ID documents.
As a Major Payment Institution (MPI) licensed by the Monetary Authority of Singapore (MAS), CYS Global Remit is required to perform Identification & Verification (ID&V) of its customers. It is to ensure that all individuals or entities that CYS Global Remit is dealing with, are who they claim to be.
CYS Global Remit has partnered with Onfido to implement biometrics verification in its ET-Home application. Onfido is a technology company incorporated in 2012 that helps businesses verify people’s identities using photo-based identity documents, selfies, and artificial intelligence algorithms.
CYS Global Remit will continue to assess the effectiveness of the solutions in the market to ensure that any risks of impersonation and fraud risks are mitigated. Safeguarding the interest of all its customers is of utmost importance to CYS Global Remit.
Sources: Payment Journal; Onfido
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