ID Finance, an emerging markets FinTech company, is incorporating behavioural biometrics into its AI-based fraud scoring engine.
The company said it is transforming the customer authentication to eliminate fraud, boost loan approvals and reduce the incidence of non-performing loans. Its behavioural biometrics system was developed in-house by ID Finance’s team of data scientists, risk analysts and developers.
It studies the unique typing and behavioural patterns users develop during the loan application process to capture a range of patterns. It records biometrics record patterns such typing speed, typos, flight time between keys, keystroke depressions, as well as the patterns from actual input.
Ekaterina Kazak, chief risk officer, said: “Any deviation from normal usage patterns will raise a red flag even if a user’s password and username have been input correctly. Behaviour patterns cannot be faked, and behavioural biometrics offers one of the strongest forms of authentication. We are even considering replacing user passwords with this data.”
The six-month pilot program operated at an accuracy level of 97.6 per cent and has now been rolled out to all seven markets of operation according to the company. ID Finance is also working on developing the technology to extend the system to cover mobile keypads and touchscreen devices.
Across all of ID Finance’s businesses the financial impact of the behavioural biometrics tool is an estimated $2.8m for 2018 based on preliminary results of the pilot and company growth projections
Boris Batine, co-founder and CEO, ID Finance added: “We are always looking at ways to minimise risk. Our biometrics system has simplified the loan approvals process without compromising on security and in fact, stops crime before it happens. The increased security has strengthened our relationships with customers and as the technology is passive, there has been no impact on the customer experience.”
Headquartered in Barcelona, Spain, the company has offices in Spain, Georgia, Russia, Kazakhstan, Belarus, Poland, Brazil and Mexico. The FinTech specialises in data science, credit scoring, and online lending in emerging markets. It uses its proprietary IT infrastructure and risk management capabilities to develop innovative financial solutions.
Copyright © 2018 RegTech Analyst
Copyright © 2018 RegTech Analyst
