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Socure Impact Stories: Leading Digital Banking Company Retools IDV & Fraud Solutions

Automated CIP Compliance and Enhanced Risk Assessment

Socure Solution Insights: Streamlining Global Growth with Seamless Identity Verification

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Effective digital identity verification remains a major roadblock for digital finance. Too often, companies rely on a set of disjointed and inaccurate identity verification systems that fail to quickly verify 20-30% of customers’ identities, cause unnecessary friction to too many good customers and struggle to stop fraud without huge amounts of manual review or step-up friction.
One of the largest prepaid, mobile and digital banking companies faced a number of these challenges stemming from ineffective identity verification before turning to Socure to solve them. With high fraud rates, time-consuming manual reviews, and difficulty in <a href="https://www.socure.com/resources/ebooks/how-to-prepare-for-transformative-consumer-demographic-shift">verifying thin-file demographics</a>, the company needed a new solution.
Managing five different identity solutions at once was yielding suboptimal results, and proved to be a costly hassle. This looked like:
<ul>
<li>21% of new applicants dropped off due to friction or were denied outright by the company’s identity verification stack, which was unacceptable to them.</li>
<li>The previous solution was unable to stop a significant amount of fraud, including <a href="https://www.socure.com/glossary/synthetic-identity-fraud">synthetic identity fraud</a> and applications from deceased people.</li>
<li>Due to poor coverage of individuals with “<a href="https://www.socure.com/glossary/thin-file">thin-file</a>” credit history — those who lack a comprehensive credit report— or prepaid phones, the company struggled to <a href="https://www.socure.com/blog/ensure-your-organization-can-onboard-gen-z">verify identities of potential Gen Z</a>, <a href="https://www.socure.com/blog/new-to-country-consumers-represent-trillions-in-economic-value">new-to-country</a> and credit-invisible customers.</li>
<li>The incumbent had an inflexible decision engine that could not be customized nor provide quick responses to real-time fraud attacks.</li>
</ul>
After the standard offline regression testing with a combination of labeled and blind out-of-time validations of superior performance, Socure’s solutions once again delivered best-in-class performance.
<h3>Socure Impact: Delivering Transformative Results with a $100M+ ROI through Increased Auto-Approval Rates, Fewer Manual Reviews, Higher Funding Rates, and Substantially Lower Fraud Losses</h3>
Socure worked tirelessly with the company’s compliance, revenue, and fraud teams to develop the empirically derived optimal balance of approval rates and fraud capture.
After an extensive data study comprising over 8.5 million records, the company opted to use a slate of Socure products to solve their problems, replacing five different Email, Phone, Device, Behavioral, Document Verification, KYC and AML Sanction Screening providers — all in one shot.
<h3>The results were clear and substantial:</h3>
Socure increased automatic verification rates from 79% to 92% — and in one of the company’s largest portfolios, those <a href="https://www.socure.com/glossary/customer-auto-approval">auto-acceptance rates</a> increased from 66% to 84%.
In the age 18-21 demographic, Socure increased approval rates from 58% to 80%. For populations the company couldn’t verify before, Socure could now verify up to 65% of those “unknowns.” In action over the course of a year, this would manifest as ~216,000 incremental accounts that would be approved instead of auto-declined.
On the fraud side, identity fraud losses dropped by 54% — and when the team deployed its new Sigma Identity v4 midway through the integration process, Socure demonstrated an additional 25% of fraud capture on top of the previous version.
The bonus on top of that? Socure ALSO reduced false positives by another 50%. In addition, Sigma captured 81% of identity theft while only subjecting 5% of applications to manual review.
Finally, when Socure found fraud and regulatory violations present in historical data, its <a href="https://www.socure.com/products/decision-module">Decision Module</a> and <a href="https://www.socure.com/products/control-center">Control Center</a> provided clear reasoning and detail for their partner’s future audit trail.
All while keeping the solution provider cost flat.
The bottom line? For just the company’s mobile banking business alone (which was one of a couple different business units), Socure’s improvements led to $24 million in increased value annually. Just by increasing approvals from people the incumbent provider missed, Socure added $9 million in annual value — the rest came from reducing <a href="https://www.socure.com/glossary/false-positive">false positives</a> and halting fraud losses. Switching to Socure for the company’s digital banking unit helped deliver an ROI of 19.3x.
<h2>A Better Path Forward</h2>
With Socure&#8217;s industry-leading identity verification, sanction screening, and <a href="https://www.socure.com/solutions/digital-identity-fraud-prevention">fraud prevention solutions</a>, companies no longer have to settle for disjointed systems that fail to effectively verify customers and stop fraud.
By partnering with Socure to mitigate fraud risk and increase approval rates while improving efficiency, this company was able to future proof its organization and virtually eliminate the business and regulatory risks presented by incumbent vendors. Delivering this level of identity verification excellence is priceless for any company seeking to outpace both their competitors as well as the advances of GenAI attacks while capturing new market opportunities. With Socure, what was once an unattainable balance of frictionless authentication and robust fraud prevention is now an achievable reality that unlocks tremendous competitive advantages.

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Socure Impact Stories: Leading Digital Banking Company Retools IDV & Fraud Solutions

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Daniel Kesser