Demand deposit accounts have historically been opened by consumers at financial institutions (FIs) based on a series of simple identity and fraud checks. With growing government and regulatory oversight, FIs are being asked to perform compliance and authentication checks to meet requirements of the Bank Secrecy Act (Anti-Money Laundering) and USA PATRIOT Act (Know Your Customer). With continuing growth in fraudulent transactions, retail banks have added additional layers of risk and fraud checking.
Mercator Advisory Group’s research report, DDA Underwriting and Account Opening Process: Today and Tomorrow, delves into the questions troubling debit business, risk, and compliance managers. Debit fraud is rapidly increasing. At the same time, regulators are becoming more sensitive to retail bankers’ abilities to monitor and prevent identity theft, block suspicious transactions, and block dangerous individuals from opening bank accounts to move funds to others through that account. Alternative online, real-time data and predictive modeling solutions are being developed. The report provides a look into Mercator Advisory Group’s primary data on U.S. consumers’ interest in digital channels for financial product information and new account application preferences. The report also provides an overview of DDA account application experiences in the past and present and trends for the future, a look at the DDA new account application work flow including traditional third-party data sources and alternative data vendor options, and a deeper dive into some of the thought leaders among the vendors from a risk and compliance perspective.
The process of new account application, review, and approval is very much in transition, with smarter, more efficient tools in development, and integration between banking channels no longer a dream but almost within grasp.
This Research Note has 23 pages and 9 exhibits.
Companies mentioned in this research report include: ACI Worldwide, Andera (Bottomline Technologies), Capital One Bank, ChexSystems, Early Warning Services, Equifax, FICO, FIS, ID Analytics, IDology, Innovis, LexisNexis, Jumio, Mitek Systems, and Zoot Enterprises.
Members of Mercator Advisory Group’s Debit Advisory Service have access to these reports as well as the upcoming research for the year ahead, presentations, analyst access, and other membership benefits.