Israeli FinTech firm AIO and financial company Finastra have received a $1m grant from the Board of Governors of the Israel-US Binational Industrial Research and Development (BIRD) Foundation for developing an online ID verification solution with the aim to expedite bank loans.
According to a statement, the software which was developed by AIO is available on Finastra’s Fusion Fabric cloud platform and as an app. The technology automates the tedious process of establishing a financial identity of loan applicants complying with existing bank regulations and KYC/KYB requirements.
The grant was awarded following an in-depth review by BIRD-appointed evaluators from the National Institute of Standards and Technology (NIST) of the US Department of Commerce and the Israel Innovation Authority.
The key factor which led to AIO achieving this grant can be credited to this digital solution which was aimed at smoothening real-world issues such as the process of customer onboarding for financial institutions.
Traditionally, banks would require an enormous amount of documents from applicants usually in paper after which verification and credit scoring was done manually, making the entire procedure expensive, time-consuming and prone to fraud.
Given that banks are struggling to meet the escalating demand for business loans post the ongoing Covid-19 pandemic, using this SaaS software, financial institutions will cut time as well as inefficiency and human errors, therefore being able to assess risk in just a few clicks. The firm said this solution will accelerate customer onboarding by up to 80%.
The solution is additionally in-built with customer privacy in mind, so all financial data is secure with the customers and is stored on their systems.
The company confirmed that a slew of large financial players in the US and Europe are already piloting AIO’s financial identity verification solution and many more are expected to do so in the coming months.
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