ICEBERG SCORING: FIRST BUILDING BLOCK – e-KYC

In today’s fast-paced digital era, ensuring the authenticity and accuracy of customer information is crucial for financial institutions. Quantyc.ai introduces the ICEBERG scoring feature e-KYC, a comprehensive solution designed to streamline and secure the customer onboarding process by leveraging multiple data sources and advanced AI technology. Let’s dive into the key features and benefits of this innovative system, along with the challenges that were addressed before integration and the general mechanism of how each feature works.

1. Integrated with Intelligent Document Processing Engine

Traditionally, document verification process involved data verification against manually entered data, which was time-consuming and prone to human errors, such as typos and misinterpretations. Fraud detection was also challenging due to the lack of advanced tools to recognize forged documents.

The ICEBERG scoring system is offered integrated Intelligent Document Processing (IDP) features. This integration allows for the detection of fraudulent documents and eliminates the need for manual data entry, reducing human errors.

General Mechanism:

• Data Collection: Customers submit digital documents such as IDs, utility bills, and bank statements.
• Document Analysis: IDP scans and analyzes these documents for authenticity, checking for signs of tampering or forgery.
• Data Extraction: Relevant data is automatically extracted from the documents, minimizing manual input.
• Fraud Detection: The system flags any discrepancies or potential fraud indicators.

Key Benefits:

• Fraud Detection: Automatically detects and flags fraudulent documents.
• Efficiency: Eliminates manual data entry, reducing processing time and errors.
• Accuracy: Ensures data integrity by minimizing human intervention.

2. Integration with National ID Authenticator & Self Identification

Verifying customer identities against national ID databases was cumbersome and lacked automation. There were significant risks of identity fraud due to fake or stolen IDs, which could easily bypass traditional verification methods.

The ICEBERG scoring feature e-KYC integrates with various national ID systems worldwide, allowing for seamless verification of government-issued IDs against other official documents.

General Mechanism:

• Data Collection: Customers provide their national ID (e.g., Aadhaar, SSN, Driver’s License) and a selfie.
• ID Verification: The system cross-checks the ID details with national databases to confirm their validity.
• Biometric Verification: Facial recognition technology compares the selfie with the photo on the ID to ensure they match.
• Data Synchronization: Any discrepancies between the provided ID and database records are flagged for review.

Examples of National ID Systems:

• Indonesia: DUKCAPIL
• India: Aadhaar by the Unique Identification Authority of India (UIDAI)
• United States: Social Security Number (SSN) by the Social Security Administration (SSA)
• Australia: Driver’s License and Medicare by the Australian Government

Key Benefits:

• Accurate Identity Verification: Cross-checks IDs with national databases to confirm authenticity.
• Enhanced Security: Minimizes the risk of using fake or stolen IDs for fraudulent activities.

3. Integration with Telco

Verifying customer contact information was often inaccurate due to outdated records. Traditional methods lacked the ability to cross-reference telecommunication data to confirm addresses and phone numbers.

Our e-KYC solution connects with telecommunication data globally to verify residence and business addresses, as well as mobile and telephone numbers.

General Mechanism:

• Data Collection: Customers provide their contact details, including address, mobile number, and landline number.
• Telco Verification: The system accesses telco databases to verify the provided contact details.
• Data Cross-Checking: Residential and business addresses are cross-referenced with telco records to confirm accuracy.
• Contact Confirmation: Mobile and telephone numbers are validated to ensure they are active and belong to the customer.

Examples of Telecommunication Data Providers:

• Indonesia: Telcom Sigma, XLAxiata,  
• India: Airtel, Jio, Vodafone Idea
• United States: AT&T, Verizon, T-Mobile
• Australia: Telstra, Optus, Vodafone

Key Benefits:

• Address Verification: Confirms residential and business addresses through telco data.
• Contact Information Accuracy: Verifies mobile and telephone numbers to ensure they are valid and belong to the customer.

4. Integration with Credit History Database System

Assessing the creditworthiness of customers was challenging due to fragmented credit information and lack of comprehensive data. Financial institutions struggled with incomplete or outdated credit histories.

The ICEBERG scoring feature e-KYC integrates with international Credit History Database System and financial information services to access detailed credit histories.

General Mechanism:

• Data Collection: Customers consent to the retrieval of their credit history.
• Credit Bureau Access: The system connects to credit bureaus to gather comprehensive credit data.
• Credit Analysis: Detailed credit histories are analyzed to assess the customer’s creditworthiness.
• Risk Scoring: The system generates a credit score based on the aggregated credit data.

Examples of Credit Credit History Database System:

• Indonesia: SLIK & Non-SLIK
• India: TransUnion CIBIL, Equifax, Experian
• United States: Equifax, Experian, TransUnion
• Australia: Equifax, Experian, illion

Key Benefits:

• Comprehensive Credit Assessment: Access to detailed credit histories for better risk management.
• Informed Decision-Making: Provides valuable insights into the financial behavior of customers.

Screening customers for negative data such as criminal records or political affiliations was complex and required multiple data sources. Ensuring compliance with international regulations was time-consuming and often incomplete.

5. Integration with Criminal Databases (Negative Data Checks)

Our solution includes market checking data for negative information related to political affiliations, AML and CTF records, and criminal records from law enforcement agencies worldwide.

General Mechanism:

• Data Collection: Customers’ details are checked against multiple databases for negative information.
• Negative Data Screening: The system screens for adverse information related to political affiliations, criminal records, and AML/CTF violations.
• Risk Assessment: Potential risks associated with customers’ backgrounds are identified and flagged.
• Compliance Verification: Ensures all data checks comply with international regulations.

Examples of Institutions Providing Negative Data:

Indonesia:

• Sipol (Sistem Informasi Partai Politik): Provides information on political affiliations and records.
• PPATK (Pusat Pelaporan dan Analisis Transaksi Keuangan): Indonesia’s Financial Transaction Reports and Analysis Center, which tracks AML (Anti-Money Laundering) and CTF (Counter-Terrorism Financing) activities.
• SKCK (Surat Keterangan Catatan Kepolisian): Issued by the Indonesian National Police, providing criminal records.

Australia:

• Australian Federal Police (AFP): Provides criminal history checks and records.
• Australian Transaction Reports and Analysis Centre (AUSTRAC): Australia’s financial intelligence agency responsible for detecting, deterring, and disrupting money laundering and terrorism financing.
• Australian Electoral Commission (AEC): Maintains records related to political affiliations and electoral participation.

India:

• Central Bureau of Investigation (CBI): Provides criminal records and background checks.
• Financial Intelligence Unit – India (FIU-IND): Monitors and reports on AML and CTF activities.
• Election Commission of India (ECI): Maintains records related to political affiliations and electoral participation.

Key Benefits:

• Risk Mitigation: Identifies potential risks associated with customers’ backgrounds.
• Compliance: Ensures compliance with regulatory requirements by screening for negative information.

Conclusion

Quantyc.ai’s ICEBERG scoring feature e-KYC is a powerful tool designed to enhance the efficiency, security, and accuracy of the customer onboarding process. By integrating with multiple data sources such as national ID systems, telco data, credit bureaus, and incorporating advanced features like selfie score match and IDP system, our solution provides a robust framework for verifying customer identities, assessing creditworthiness, and detecting fraud. Embrace the future of secure and efficient customer onboarding with Quantyc.ai.

For more information about ICEBERG scoring feature e-KYC, please contact us or visit our website.