SCB switching to digital identity to authenticate bank transactions

The bank is set to deploy this year the digital identity intelligence solution fStandard Chartered Bank (SCB) is set to deploy this year the digital identity intelligence solution from ThreatMetrix to authenticate customer credentials in processes such as new account registrations, verifying account log-ins, securing payments and transfers and technical account management.

The bank will deploy the solution in several Asia Pacific markets such as Singapore, Hong Kong, India and Malaysia.

“We are struggling. For example, client onboarding for credit card applications is still largely paper-based. Customers have to fill and submit the forms together with their identity and income documents. Ninety percent of the time, they are asked for additional documents for verification. In a paper-based application, it is almost impossible to differentiate a good customer from somebody who is faking his identity,” Sanjay Nandrajog, global head, risk management operations at SCB, said during the recent Digital Identity Summit held in Hong Kong.

The credit check alone takes two to five days, and afterwards the credit evaluation conducted by trained bank staff adds on to credit card processing time.

“The issue here is that no two people think alike and it is a matter of decision, which can be pretty inconsistent. That again is very manual and very labor intensive.”

By deploying ThreatMetrix’s digital identity intelligence solution, SCB hopes to automate and speed up the whole process while simultaneously fortifying the securing around it.

“Let us go through to the same process now from a digital transformation perspective. You can apply for a credit card online. The moment you apply online, you are accessing from a device and there are pieces of information about you in the device, something we call your digital identity, which we can now consume on the spot. Once I get your digital identity and it is certified to be trusted. You can download your credit card number and start shopping online while we sent the physical card by mail. Using digital identity intelligence, we could take out 90% of our credit card customers out from any sort of verification,” said Nandrajog, adding that reference check can be cut from 10 days into mere seconds.

Furthermore, credit decision is also automated. “You put in five to six rules on top of machine learning and it can decide more accurately than a human person would,” he added.

What’s more the entire process of authenticating a customer’s credentials is done in a seamless and unobtrusive manner.

“Clearly, there is not case for manual processes now. Not only are they clunky and cumbersome, they are also slow and not always consistent,” Nandrajog said.

SCB spent almost two years in researching about digital identity solutions and had the POC running for nearly a year on multiple channels.

ThreatMetrix sets sights on financial services sector

“One of our major focus as we seize opportunity in the region is to provide seamless and frictionless interface to online banking across the entire world. Major financial institutions have been retooling their products and services through the online channel and they require seamless authentication,” Reed Taussig, CEO and president of ThreatMetrix.

The company’s digital identity network harnesses real-time shared intelligence from billions of transactions collected against tens of thousands of websites and hundreds of millions of mobile devices worldwide to stitch together user’s true digital identity by analyzing the myriad of connections between devices, locations, behaviors, detected threats and critical but anonymized personal information.