In This Issue

The Challenge with Multi-Factor-Authentication (“MFA”) & Bank Verify Refreshes and the Risk-Based Know-Your-Customer (“KYC”) Approach.

This Month’s Spotlight: Tackling the MFA-Related Refresh Issue

Banks are all aboard the MFA train, and while it’s super secure, it’s thrown us a curveball – it’s created a barrier to refresh an original instant bank verification, or “IBV” request. This means your refresh rate may have dropped and we want to explain why and let you know what we are working on to mitigate this issue. Where the requirement for frequent MFA verifications leads to less frequent data updates in our system.

The Problem: When a customer first uses the Inverite iFrame to complete the IBV request, we ask them to provide their MFA details, however, some customers are set up to receive one-time codes via text message as their MFA setting. This means that each time you request a refresh, a new one-time code is sent to the customer. This issue doesn’t exist for customers who have their online banking set up with security questions and we are typically able to provide refreshes for those accounts.

What We’re Up To

  • Tech Tune-Up: Our tech team is working on innovating our framework to adapt to these MFA requirements more seamlessly. These upgrades are meticulously designed to ensure that the data you rely on remains readily accessible, minimizing any disruptions to your financial operations.
  • Bank Banter: Accurate, up-to-date information is the lifeblood of your financial decisions. Our mission? To make the MFA verification process more streamlined, ensuring regular IBV data refreshes.
  • Simplifying the Process: Instead of overwhelming you with lots of educational content, we’re focusing on making the MFA process as straightforward and hassle-free as possible. Our aim is to smooth out any bumps in the road, making sure your experience is seamless and your data stays fresh without any extra effort on your part.

The Lowdown on Risk-Based KYC: Custom Fit for Every Customer

The Risk-Based Approach (RBA) in KYC is gaining momentum as institutions strive for a more dynamic and efficient way to manage financial risks. It’s all the rage, and here’s why: it involves tailoring the KYC processes according to the assessed risk level of each customer, rather than applying a one-size-fits-all model.

Understanding RBA

RBA is a smart strategy that sizes up customers according to their risk levels, particularly concerning money laundering, fraud, or identity theft. It allocates more resources and tighter checks towards customers posing higher risks; while keeping things straightforward for those at lower risk. By doing so, institutions can zero in on the areas that truly need attention, making their KYC processes more efficient and on-point.

RBA In Action

  • Risk Assessment: Kicking things off, we take a close look at each customer’s risk profile using advanced data analytics and AI. Considering their job, transaction habits, location, and more.
  • CDD Adjustments: Based on our risk assessment, we tailor our Customer Due Diligence. High-risk customers undergo Enhanced Due Diligence, involving thorough background checks and transaction monitoring.

The Tricky Bits

While the RBA offers numerous benefits, its implementation comes with challenges. It requires a deep understanding of the risk factors, robust data collection and analysis systems, and continuous monitoring and updating of risk profiles.

As we close this issue, remember that your proactive steps, like updating MFA settings, play a crucial role in enhancing our system’s efficiency and accuracy. Together, through embracing innovations in MFA and the Risk-Based KYC approach, we’re crafting a more secure, streamlined, and responsive financial environment!