A lot of time was invested in manual review of all transactions, which in turn delayed transaction processing time and also impacted Customer Satisfaction. They needed a solution to optimize their fraud management process by reducing cost and transaction processing time.
We developed a predictive model outputing a 'Risk Score' and a 'Risk Class', and related business process wherein only high risk transactions were sent for manual review, and rest approved automatically. A schedule of data extraction was setup to generate the Risk score before KYC forms were prepared. The process was streamlined to ensure that all KYC forms carried a Risk score and Risk Class. The Compliance committee continues to give it’s opinion on each KYC form (Low Risk to Extremely High Risk) and the predictive model continues to be bootstrapped.
|KYC Form - Illustration|
The new process reduced number of transactions reviewed manually from 700-800/day to 200/day, and also reduced the average turnaround time for transactions from from 3.0 to 1.5 days. Thereby reducing cost and improving Customer Satisfaction.
More details can be found here.