SUCCESS, TOGETHER

Financial industry use case

e-KYC digital onboarding made simple

Background Story

e-KYC solutions have been widely adopted worldwide and have use-cases across multiple industries. With e-KYC, consumers can apply for loans digitally and instantly access credit.

LendMN is the first AI & ML scoring-based micro-lending application in Mongolia. It has been one of the foremost leaders for inclusive financing and micro-investment models. LendMN has acquired a 45% of NBFI market share in just 24 months after its launch. Behind LendMN’s great success, the e-KYC solution has played a crucial role in enabling seamless digital onboarding and faster customer acquisition.

Problems of the traditional lending landscape

At the time of LendMN’s release, there were no digital solutions in the lending market, and when people want to get a loan, they had to go to traditional lenders, including banks. Traditional lenders have heavily relied on physical branches and lengthy paperwork just to apply for a loan.

As a result, the waiting time for loan approval was more than a week.

Also, same with other emerging markets, many people do not have enough credit score history to get a loan, and access to the physical branch was difficult for the most, resulting in low financial inclusion and service penetration. LendMN wanted to solve this problem and provide financial services to the underbanked who do not have access to nearby branches. Problems of the traditional lending landscape In pursuit of digital onboarding Financial industry use case To support the financial inclusion and serve the underbanked, eliminating physical branch-dependent tradition was necessary, and digital onboarding was perfect for this purpose. With digital onboarding in place, anyone with a smartphone & internet could apply for a loan in an instant without visiting the branch. In addition, to effectively detect fraudsters and protect their business in the emerging market, an AI-powered fraud detection process as part of the onboarding was essential. Birth of first and foremost, mobile-based instant lending service in Mongolia After adopting an e-KYC solution by combining ID document reader, facial recognition, and other sophisticated fraud detection solutions, LendMN became the first mobile-based instant lending service in Mongolia. With the e-KYC solution, LendMN could offer instant loans to customers in under 3 minutes, including onboarding in one flow.

Furthermore, the e-KYC solution helped them enable easy and fast online verification. The fraud detection solutions – such as liveness detection, blacklisting – and admin dashboard made LendMN’s business more efficient, profitable and trusted.

Key Benefits:

  1. Able to offer instant loan products in under 3 minutes, including onboarding in one flow.
  2. 45% of NBFI market share in just 24 months
  3. 912K registered users
  4. 3.8M microloans issues
  5. $310M USD disbursed
  6. Lower operation cost

About the e-KYC solution

AND Solution’s e-KYC solution is a bundle of independent modularized technologies for digital ID verification, fraud detection, and everything related to customer identity verification. Depending on the business’s needs, objectives, and challenges, you can use these modules together or independently to create a comprehensive e-KYC process.

Document Reader

The most fundamental part of the identity verification process is verifying government-issued ID documents such as passport, driver’s licenses, social security number, etc. Our e-KYC suite has a multipurpose document reader To digitize and automate this paper-heavy verification process.

Auto Document Type Detection
Accurately recognizing the type of document is crucial to extract information properly. Our document reader can
automatically detect supported document types, and its accuracy increases over time with the use of our machine
learning models.

Text Extraction
Extract the information necessary for identity verification, such as full name, date of birth, ID number, etc., using OCR
(Optical Character Recognition) technology.

Fraud Detection
Automatically authenticate the ID photo quality to prevent content tampering. For example, our system can detect
unnatural images on ID documents using AI techniques and identify forged documents.

Automated Verification with Third-Party Integration
With the information extracted from the document, our system can automate the identity verification process by
building integration to a trusted third-party database (e.g., government database).

At AND Global, we offer our Link API product as an automated identity verification solution to enable consent-based
access to a customer’s bank account. Using Link API, you can streamline your identity verification process by
accessing the already bank-verified account holder’s information.

Key Benefits:

Auto document type detection
AI-based document forgery and tampering detection
Continuous learning & improvements
Streamlined onboarding with third-party Integration

Biometric matching

Using our facial recognition technology, you can enable an additional layer of identity assurance and fraud prevention to your business. Our state-of-art facial recognition solution comes with the following technologies:

Facial Recognition
Recognizes and compares the photo from the ID document with the customer’s selfie for verification with high
accuracy.

Liveness Detection
Conducts a real-time liveness detection to distinguish a live person’s face from any liveness attacks such as photos
or videos used to register.

Accumulative Facial Database
A database where you can store and manage customer’s facial data collected during the onboarding process to
further reduce fraudulent activities. With the database in place, the system can match new customer’s data with
existing customers to prevent fraudsters and blacklist potential harmful customers.

Key Benefits:
Facial recognition with high accuracy
Robust fraud prevention with
liveness detection
Blacklist fraudsters and harmful customers
Centralized database for deploying advanced
security features

Admin

While an AI-automated solution is competent at verifying identity and spot signs of fraud, the compliance team still plays a vital role in assessing cases such as when the quality of input does not pass the threshold determined by AI-automated decision making. Using a hybrid solution of e-KYC and a manual check will enhance your customer onboarding experience. To help the compliance team, we offer:

KYC Reporting Dashboard
A dashboard to effectively manage, monitor, and escalate the e-KYC processes. Customers that have failed to meet
the facial recognition threshold are sorted through the system and enlisted for a manual review to focus on
higher-value customers and save time.

In-App Video Call
Your compliance team can interact with the customer using the in-app real-time video call and complete the
onboarding process. Video call identification is a quick and secure way to verify your customer’s identity remotely.

Key Benefits:

Faster onboarding with human verification specialists.
Reduce operation costs by focusing on high-value customers.
Increase operational efficiency.
Offer a hybrid solution to offer a complete and fail-proof onboarding experience.