Early Warning Blog

Adapting DDA Account Strategies for Greater Financial Inclusion

Posted by Shirley Inscoe, Sr. Analyst at Aite Group on Nov 28, 2016

Financial institutions (FIs) continue to place a greater emphasis on enabling new account-opening growth through online and mobile channels, and expand their product offering to foster financial inclusion and growth. In my recently published study New DDA Strategies: Balancing Risk and Regulators, over 40% of FIs in every category with the exception of the largest FIs already offer some type of second chance account. While only 17% of the largest FIs currently offer second chance accounts, another 17% are planning to do so and 50% are evaluating whether to do so.

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Topics: Authentication, Identity, Digital Identity Assessment

Fostering New Account Growth through Advances in Digital Identity Assessment

Posted by Jim Mortensen, vice president of Identity Solutions on Nov 07, 2016

Online Account Opening Growth in 2017

We can all agree that the “bank of the future” will look and act differently than traditional brick-and-mortar institutions, but just how distant is that future? While we’ve seen account openings begin to shift away from the branch, Aite Group reports that by next year, 28% of new accounts will be opened online and 8% will be opened on a mobile device (an anticipated increase of 5% and 2% from 2015, respectively).1 In an increasingly faceless environment, validating a consumer’s personally identifiable information, their devices and related risk is vital to ensure the optimal customer experience as well as safety and soundness in the financial system. Are you ready for this shift?

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Topics: Authentication, Identity, Digital Identity Assessment

Has Your New Account Screening Evolved?

Posted by Robin Love on Oct 27, 2016

Balancing New Account Growth and Risk Mitigation

Although financial institutions (FIs) have been screening new account applicants for decades, guidelines for how to best utilize that decision-making data has become increasingly scrutinized in an effort to ensure consumer fairness and financial inclusion. Not only have the variety of data sets available to FIs today versus even five years ago advanced significantly, but so too has the sophistication of the consumers applying for new accounts.

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Topics: Authentication, Identity

[Infographic] Improving Digital Identity Assessment

Posted by Early Warning on Oct 17, 2016

As account opening continues to expand to online and mobile channels, institutions continue to tailor product offering to meet the needs of the consumer, validating identity and risk has become increasingly complex. Learn more about how to improve the digital identity assessment process with this infographic. 

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Topics: Authentication, Identity, New Account Fraud, Digital Identity Assessment

Reinforcing Authentication Best Practices

Posted by Rich Rezek, vice president market development, Authentication Solutions on Aug 21, 2016

Industry Dialog on SMS OTP Picks Up

In last month’s blog, we touched on the latest draft of the Digital Authentication Guideline (DAG) (open for public preview) from the United States National Institute of Standards and Technology(NIST), discouraging companies from using SMS-based authentication as a form of out-of-band (OOB) authentication. We shared insight from Al Pascual, senior vice president, research director and head of fraud & security at Javelin via his blog No, SMS OTP Isn't Dead.

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Topics: Authentication, Identity

Industry Experts Rank Early Warning as Top Provider in Digital Identity Assessment

Posted by Jim Mortensen, vice president of Identity Solutions on Aug 19, 2016

The term “Digital Identity” has been popularized to link a consumer to his or her transactions online. The definition itself varies by generation, signifying the important evolution taking place. Millennials tend to associate their digital identity to online activities, social media data or biometric information while their predecessors tend to classify personally identifiable information such as a Social Security number, Driver’s License information and banking identity information as the core elements that make up their identity credentials. In truth, a consumer’s digital identity has evolved to encompass all of these things and more.

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Topics: Authentication, Identity

Fostering Financial Inclusion While Combatting the Growing Risks of New Account Fraud

Posted by Robin Love on Jun 29, 2016

Urged to open their doors to more consumers, banks are simultaneously under pressure to reduce the impact of rising fraud. Combatting new account fraud while working to foster financial inclusion is a tall order. As banks continue to search for the best way to keep fraudsters out of the banking system while bringing more consumers in, they should consider solutions that address these two seemingly distinct challenges in unison. The methodology and the technology that banks use to screen and validate new account applicants should have a dual purpose, identifying consumers worthy of deposit accounts and also uncovering criminal intent.

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Topics: Authentication, Identity

A Perfect Storm of Identity Fraud is On the Horizon

Posted by Julie Conroy, Aite Group on May 23, 2016

New account acquisition is an increasingly challenging proposition for financial institutions (FIs) of all sizes. Opportunities for new account fraud are further exacerbated by the growing number of digital-native millennials, or consumers that prefer to conduct commerce in the online and mobile channels. Additionally, Dodd-Frank dramatically changed the economics of retail banking in the United States, while the Consumer Financial Protection Bureau (CFPB) is intensely scrutinizing new account risk assessment practices, pushing FIs toward greater financial inclusion.

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Topics: Authentication, Identity

Predictive, Analytical Scores Drive the Future of New Account Screening for Financial Inclusion

Posted by Robin Love on Mar 01, 2016

While regulatory scrutiny around serving the unbanked and underbanked population has grown, so has financial institutions’ (FI) desire to provide these consumers with meaningful financial services. The objectives of banks and credit unions are increasingly focused on ways they can serve more consumers, foster new account growth and continue to minimize risk.

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Topics: Identity

New Account Applicant Screening That Mitigates CFPB Concerns

Posted by Robin Love on May 27, 2015

According to a recent FDIC study, one in thirteen U.S. households are classified as “unbanked,” meaning they don’t work with an insured financial institution [FI], while another one in five households are categorized as “underbanked,” meaning they have an insured FI account, but use “non-FI alternatives” for their banking needs.

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Topics: Identity