smartKnow

An integrated solution that extends the Pega KYC Framework to enable individual customers have their KYC done online with automated ID validation and Risk Assessment.

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Inspiration

KYC identity Verification and E-Screening application is inspired by the difficulties that individuals face to complete or re-verify their KYC during the worldwide pandemic situation. The solution offers customers to complete their KYC online and remain compliant with regulations, so that banks / financial institutions do not suspend services to them. On the other hand, financial institutions struggle to keep their services available during pandemic due to restricted branch operations and hours of working.

Hence, we targeted to create an application to provide Online KYC solution that enables customers to complete KYC application online with 24*7 availability.

What it does

An online solution that enables the individual customers to initiate and complete their KYC without requiring to visit the Bank, staying at home at their own convenience. This solution allows the customers to fill up application form online, capture a selfie and upload valid photo ID documents to complete ID validation. Once submitted, the solution does an automated Risk Assessment and allows the KYC Analyst to review the risks associated with the application quickly prior to proceed further to complete the customer on boarding in the core banking systems. This solution brings in all the capabilities that the Pega CLM Framework provides along with the power of machine learning to automate ID verification and a self-service portal ready to be used by the customers to complete KYC online.
See the solution in action by opening the try out URL and clicking Apply Now button.

How we built it

Smart Know solution is built using Pega 8.4 version on top of Pega CLM Framework. The application is integrated to trigger from the Bank’s website using Pega anonymous log in. Solution provides a platform to capture basic details, id proofs and performs ID verification without the customer credentials. Once the application is submitted, customer profile is created and sent to customer for further use. Pega triggers e-screening case as a child of KYC application and routes the cases to the Bank’s Analyst. As part of the ID verification, the selfie photo and the ID document are uploaded to Microsoft cloud using the FACE API. Then the system invokes Microsoft DETECT API to receive a percentage match of the images to decide the next course of action. This solution leveraged a Pega marketplace component Identity Verification to achieve the same. As part of the e-screening, World check One API is invoked to do a name pattern match on the customer and the return results are displayed to the KYC Analyst for assessing the risk quickly. This API integration extends another Pega marketplace component World Check One API .Once all the checks are completed, CRS Tax Assessment, FATCA Assessment, Legal Work and Fulfilment activities will be completed to onboard the customer as offered in the out of the box KYC Framework.

Challenges we ran into

  1. The APIs needed for this solution are using paid subscription model. As part of demo solution, the simulation feature is used to avoid cost implications.
  2. This solution relies on Microsoft ML capabilities to match photo ids and the selfie. The results are dependent on the clarity of the images.
  3. To built the capture selfie screen, custom controls are introduced which has limitations in terms of maintenance and reusability.

Accomplishments that we're proud of

  1. Successfully implemented anonymous log in feature to enable customers access the KYC application
  2. Successfully reused marketplace components to capture selfie directly from customer self-service portal and Risk assessment.
  3. Re-modelling of KYC OOTB process flow to support self-service customers
  4. Performing Photo Verification using Microsoft Face detection and verification API
  5. Performing Risk Assessment using Refinitiv World One API

What we learned

  1. We investigated various log in mechanism and used anonymous log in as we wanted to build the solution using new features.
  2. We compared many API and capabilities for Face Detection (FACE, KAIROS, ) and used Microsoft platform for accuracy.
  3. We compared leading video KYC platforms like (Zumio, Encompass, Shufti Pro) to understand the capabilities to build the use cases in our solution.
  4. We compared many platforms (duedil, comply advantage, Dow jones) to assess capability to perform risk assessment and found the refinitiv as world leader

What's next for smartKnow

  1. Enhancements support data migration from legacy systems to initiate re-verification of KYC proactively.
  2. Integrated self-help, Chatbot features in customer portal to provide virtual assistance.

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