Martin Schmid, VP Ident & RegTech
With social distancing becoming the new normal, the reliance on contactless and digital modes of payments continues to increase exponentially. In fact, reports say that the U.S. mobile banking grew 50 percent in the first half of 2020 and new registrations spiked 200 percent in April alone. This momentous digital shift is ushering a new era of flexibility for the financial institutions but several reports of fraudulent activities are also making headlines. Needless to say, it has become essential for financial institutions to use customers' financial data to gain a holistic understanding of every transaction details, eliminate chances of fraudulent activities, and make data-driven decisions.
This is where FinTecSystems (FTS)—a market leader in Open Banking & Financial Data Analytics—steps in with its digital infrastructure and leading machine learning technology. Founded in 2014, this B2B FinTech company has been licensed by BaFin as a payment initiation and account information service provider since March 1st, 2019. FTS specializes in open banking infrastructure and financial data analysis and has emerged as a trusted partner of more than 6,000 banks.
“We have all the licenses and certifications to access consumers’ and businesses’ bank accounts. Our key offerings help KYC, AML and Anti Fraud software providers to fight against any sort of fraudulent activities while complying with complex regulatory requirements,” says Martin Schmid, Martin Schmid, VP Ident & RegTech, FTS. “Our compliance suite delivers reliable checks for concrete challenges in the areas of fraud prevention (RAT), money laundering (AML) or identification (KYC). It processes external financial data like accounts, turnovers, and payment data, as well as retrieves financial data directly through an open banking architecture in a real-time manner.”
FTS’s “Fraud Check” offers automated fraud detection in real time. Using intelligent analysis procedures, FTS checks account data against specific anomalies such as returned direct debits including triggers, garnishment payments or debt collection procedures.
Our compliance suite delivers reliable checks for concrete challenges in the areas of fraud prevention (RAT), money laundering (AML) or identification (KYC)
This allows for the detection of fraudulent transactions among other things and payment procedures such as direct debit or purchase on account (buy now pay later) to be risk-optimized and potential fraudsters to be identified more easily.
Further, the “Anti-Money-Laundering Check” from FTS checks bank accounts for suspicious patterns and sorts them according to conspicuousness with regard to fraud and money laundering. The solution identifies suspicious facts and connections on payment accounts, such as patterns of account movements that do not match the income profile, or unusual incoming payments from untraceable sources. “As a result, in addition to a clear traffic light display, you receive information about the facts that you should pay particular attention to during the check,” adds Schmid.
With “Source of Funds Check”, the company helps businesses acquire digital proof of income based on real-time account data. This is reliable owing to the presence of time and date stamps, independent due to TÜV certified data protection, and comprehensive by listing all income with the amount and the counter account. It also enables clients to determine customers’ financial capability.
“Various regulations require providers and platforms to determine the financial capability of their users,” Schmid adds. On the other hand, the “Affordability Check” transmits the amount of disposable income as well as its relationship to expenses. This is based on daily updated account movements from online banking. “As a service provider, you thus enable your clients to act not only in compliance with the law, but also in a socially responsible manner,” he prides.
With such a comprehensive offering, FTS has already set a strong footprint in the banking and lending realm. In the coming years, the company will focus on enhancement on the solution part to help other regtech, compliance companies and data orchestration hubs increase their range of service towards their clients. “We believe in the philosophy of Steve Jobs. We don’t let the market ask for a solution but invent and present new ones that ultimately break the status quo,” Schmid concludes.