SOLID Principles: A Comprehensive Guide to Object-Oriented Class Design Using Swift

<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2023/06/MicrosoftTeams-image-2.webp" alt="M2P Fintech" title="" width="100%" height="370">The microfinance industry has been witnessing stellar growth over the last decade. The sector grew&nbsp;16.5 times, from ₹ 17 thousand crore in 2012 to ₹ 2.85 lakh crore in 2022. With a market share of&nbsp;37.53 %, NBFC-MFIs stand as the leading financial provider in this sector.Thanks to the proven model of&nbsp;Joint Liability Groups (JLGs), the Microfinance Institutions (MFIs) witnessed phenomenal growth in the past decade. This model enabled doorstep access of financial services to the underserved population, mainly women.In addition to the JLG model, the Government of India initiatives listed below have also aided the growth of MFIs.•&nbsp;Pradhan Mantri Jan Dhan Yojana (PMJDY) - This&nbsp;government scheme was the primary reason for millions of Indians to have a bank account.•&nbsp;Jan-Dhan Aadhaar-Mobile (JAM) trinity -&nbsp;Helps Indians to link their Jan Dhan account, Aadhaar card, and Mobile number.•&nbsp;India Stack -&nbsp;Comprises of paperless, cashless, and consent layers that help lenders to collaborate with Fintechs and create products based on customer needs.•&nbsp;Aadhaar Penetration -&nbsp;Aided the shift of the traditional banking system to a digital model for enabling technology players with&nbsp;electronic Know Your Customer (eKYC) and authentication services.<h2 class="heading-node" id="q0wu2iefn" style="text-align: justify">Challenges Amid Growth</h2>The above factors are accelerating the microfinance penetration. But the industry is witnessing cracks due to the challenges in the current model of borrower engagement – the&nbsp;High Touch Model (HTM).In contrast to the&nbsp;Low-Touch Model (LTM), the&nbsp;HTM&nbsp;has high engagement level between the loan officer and the borrower. This may look encouraging from an aerial view. But this model is one of the main reasons for the&nbsp;high attrition rate of the loan officers&nbsp;and the increase in Operational Expenses (OPEX). According to a KPMG report by MFIN, this model does not offer borrowers the necessary value proposition to attend group meetings and maintain group dynamics post-adoption of the cashless collections.This led the <a class="link" href="https://m2pfintech.com/micro-finance/" target="">microfinance</a> players to move towards a more efficient model – the&nbsp;Tech-Touch Model (TTM).<h2 class="heading-node" id="awrgve7ov" style="text-align: justify">Tech-Touch Model – Amalgamation of Low-Touch and High-Touch Models</h2>The Tech-Touch Model strikes a perfect balance between the&nbsp;efficiency and cost savings of a low-touch model and the personalization and support that high-touch model offers. In addition, it is an advanced version, extending the best of both worlds – automation and self-service tools from the low-touch model and customer engagement from the high-touch model.Many MFIs are gradually adopting the tech-touch model to digitize their loan sourcing, management, and collection processes. By leveraging the benefits of the TTM, lenders are on the path to&nbsp;Digital Microfinance.<h2 class="heading-node" id="bxz4bwal3" style="text-align: justify">What does Digital Microfinance Entail?</h2>Digital <a class="link" href="https://m2pfintech.com/blog/how-technology-is-revolutionizing-microfinance-lending/" target="">Microfinance</a>&nbsp;is the hot, new buzzword in the microfinance realm. As the name suggests, it is the use of digital technologies to disburse micro loans to low-income individuals.With TTM at its core, digital microfinance can&nbsp;digitize, automate,&nbsp;and&nbsp;streamline&nbsp;the loan processes such as loan disbursement, loan management, and collections. By digitizing these processes, MFIs can significantly reduce the time and cost associated with traditional loan origination methods.Usually, loan sourcing is the primary step before loan origination. First, the loan officer responsible for loan sourcing goes to the self-help groups and collects the borrower’s details. Then, he collects all the requisite borrower information and takes it to the branch office, consolidates the borrower details, and assesses the borrower's creditworthiness.&nbsp;All these steps can take up to 3 days. Not to forget the vast volume of paperwork they handle.It can be seen that the conventional way of loan sourcing can be time-consuming and inconvenient. That is why it is crucial for MFIs to opt for digital methods and start exercising digital microfinance.<h2 class="heading-node" id="ktaa2g4jl" style="text-align: justify">Digital Microfinance – Road to Productive &amp; Effective Loan Originations</h2><a class="link" href="https://m2pfintech.com/loan-origination-system/" target="">Loan origination</a> is a critical process for lenders. From initial credit assessment, approving/denying loan applications, to disbursing the right loan amount to the right borrower, <a class="link" href="https://m2pfintech.com/blog/top-5-loan-origination-software/" target="">loan origination</a> can be quite tricky. It is even trickier to originate accurate loans in a matter of minutes/seconds.Digital Microfinance accelerates loan originations by employing digital methods for&nbsp;<a class="link" href="https://m2pfintech.com/blog/know-your-customer-kyc-the-need-for-authentication/" target="">KYC</a> verification, bank account verification, borrower credibility check, borrower credit assessment, performing Compulsory Group Training, etc.<h3 class="heading-node" id="7unu5k1rx" style="text-align: justify">Expedite Loan Sourcing via Digitization</h3>With digital tools like our&nbsp;LoanBook application, loan sourcing becomes a piece of cake for the loan officers.Here’s how.The LoanBook application comprehensively digitizes all the work carried out by the loan officer, starting from loan sourcing to management and collections.Using the application, the loan officer adds every member of the JLG into the system along with their details. After entering the basic information, the officer can verify the borrower's details.In<a class="link" href="https://m2pfintech.com/blog/5-key-factors-for-selecting-an-ideal-loan-origination-system-los-partner/" target=""> loan origination,</a> the LoanBook application can help the MFIs expedite the following:<h4 class="heading-node" id="4l1ebhq7t" style="text-align: justify">✔&nbsp;EKYC Verification</h4>EKYC verification for the borrower can be done either by validating their fingerprint or through OTP verification or Iris scan.<h4 class="heading-node" id="mm2hs7a2h" style="text-align: justify">✔&nbsp;Penny Drop Verification</h4>The credibility of the borrower’s bank account is verified by dropping a penny into their bank account.<h4 class="heading-node" id="smh6cnj2g" style="text-align: justify">✔&nbsp;Geo-tagging</h4>At the time of sourcing, the field officers can use this feature to tag the location of the borrowers and the self-help groups (where center meetings are conducted). Geo-tagging also eases the loan collection process by quickly pointing to the borrower's location.After completing eKYC, the loan officer adds the details of the borrower’s family members and specifies the loan amount required by the borrower. This is where our inbuilt Embedded Business Rule Engine (BRE) comes into the picture.With LoanBook, the time taken for loan decisions reduces to 3 minutes from 3 days.<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2023/06/MicrosoftTeams-image.webp" alt="M2P Fintech" title="" width="100%" height="467">Many enterprise MFIs are working closely with us and are already on the road to Digital Microfinance. They have simplified their loan origination process, reduced the Turn Around Time (TAT) from weeks to days, and mitigated their OPEX. These MFIs have unlocked a new model for optimizing their loan sourcing process, scaling their profitability, and increasing financial access to women in rural and underserved markets.Do you want to originate faster loans?<a class="link" href="https://m2pfintech.com/contact-us/?activeKey=1" target="">Schedule a demo</a>&nbsp;with us.<a class="link" href="https://m2pfintech.com/newsletter/">Subscribe</a> to our newsletter and get the latest fintech news, views, and insights, directly to your inbox.&nbsp;Follow us on <a class="link" href="https://www.linkedin.com/company/m2pfintech/mycompany/">LinkedIn</a> and <a class="link" href="https://twitter.com/m2pfintech">Twitter</a> for insightful fintech tales curated for curious minds like you.&nbsp;

Digital Microfinance – The Next Wave in MFI

<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2023/06/MicrosoftTeams-image-10.webp" alt="M2P Fintech" title="" id="69sc202tm" width="100%" height="317">Great <a class="link" href="https://m2pfintech.com/blog/elevating-b2b-experience-design/">experience design</a> is vital to drive customer loyalty and revenue. User Interfaces are crucial components that enable enhanced customer experience.Building an Android User Interface (UI) is not an easy task. XML layouts can be verbose and difficult to maintain. And it can be hard to make changes to the look and feel of the <a class="link" href="https://m2pfintech.com/blog/super-apps-in-consumer-banking-what-role-does-open-banking-play/">mobile app</a> without rewriting layouts. Many developers still grapple with complexities in XML layouts, code volumes, and spend hours on tedious UI updates.Is there a way you can build better Android UIs with less code?Jetpack Compose holds the answer.In this blog, our resident Android Expert and Software Development Engineer <a class="link" href="https://www.linkedin.com/in/sagarbalyan/">Sagar Balyan</a> explains what Jetpack Compose is, its benefits, and how it is transforming Android UI development by overcoming the limitations of the traditional approach.<h2 class="heading-node" id="9sz77xr8f" style="text-align: justify">What is Jetpack Compose?</h2>Jetpack Compose is the cutting-edge toolkit for building native UI in Android. It simplifies and speeds up UI development allowing you to bring your apps to life with minimal code, a robust set of tools, and user-friendly Kotlin <a class="link" href="https://m2pfintech.com/blog/api-the-power-that-drives-new-age-banking-ecosystems/">API</a>s.Jetpack Compose is declarative, meaning you can describe how your UI should look like, rather than how it should be built, making it much easier to create complex layouts with maintainable code. Its speed and ease of use have quickly made it the preferred choice of technology for Android development.Now, let’s explore the benefits that Jetpack Compose brings to the table.<h3 class="heading-node" id="0fkwz62xu" style="text-align: justify">Less Code</h3>Less code is the new norm, thanks to Jetpack Compose. By eliminating XML files, it simplifies the development process and eliminates unnecessary complexity. It's no wonder that even Twitter has applauded its low code feature, highlighting how the code required for a Button class was dramatically reduced by 10X.<h3 class="heading-node" id="neh0tnq7w" style="text-align: justify">Faster Development</h3>Jetpack Compose not only accelerates the Android app development process but also makes it faster and more efficient. With its intuitive and declarative syntax, developers can build user interfaces in a fraction of the time compared to traditional approaches. Additionally, Jetpack Compose simplifies the implementation of light and dark modes in apps, making it easier to create visually appealing and consistent experiences across different themes.<h3 class="heading-node" id="qcy4oaro2" style="text-align: justify">Live Previews</h3>Jetpack Compose can provide live previews and is not just limited to just one. Developers can create and preview multiple composables live previews in real-time, allowing for seamless experimentation and instant visual feedback. This powerful feature enables developers to iterate and refine their UI components quickly, leading to more efficient and effective development cycles.<h3 class="heading-node" id="qbozuvyso" style="text-align: justify">Powerful</h3>Jetpack Compose can help you build stunning apps by providing direct access to the Android platform APIs and seamless integration with essential features like material design, dark theme, and animations. This powerful toolkit has garnered the attention of industry leaders like Square, who have declared that Compose goes beyond just offering a declarative UI. It has significantly improved accessibility APIs, layout capabilities, and various other aspects of app development.<h3 class="heading-node" id="8gshymfhu" style="text-align: justify">Separation of Concern</h3>Other than these benefits, Jetpack Compose addresses a barrier that was present in the traditional XML approach namely the Separation of Concern. For example, when a Viewmodel was written in Kotlin, it had a close interaction with the XML file. This tight coupling between the Viewmodel and the XML file caused increased dependencies.If these components are tightly coupled and heavily dependent on each other, it defeats the purpose of having two separate files. However, Jetpack Compose resolves this problem by allowing the UI to be written directly in Kotlin. This means that the Viewmodel and the UI are now seamlessly integrated, reducing dependencies and enhancing code organization. With Jetpack Compose, developers can achieve a more cohesive and efficient development workflow.Due to these wide-ranging benefits, more companies are transitioning from the traditional XML approach and embracing this modern toolkit.<h3 class="heading-node" id="hzgcqsw3y" style="text-align: justify">Live Jetpack Compose Apps</h3>Wonder what live apps have been built on Jetpack Compose?Here are a few. If you are not using them already, make sure you explore them further.<ul class="list-node" id="chyc6t16f"><li><a class="link" href="https://play.google.com/store/apps/details?id=com.airbnb.android&amp;hl=en&amp;gl=US&amp;pli=1">Airbnb</a></li><li><a class="link" href="https://play.google.com/store/apps/details?id=me.lyft.android&amp;hl=en&amp;gl=US">Lyft</a></li><li><a class="link" href="https://play.google.com/store/apps/details?id=com.reddit.frontpage&amp;hl=en&amp;gl=US">Reddit</a></li><li><a class="link" href="https://play.google.com/store/apps/details?id=in.startv.hotstar&amp;hl=en&amp;gl=US">Disney + Hotstar</a></li><li><a class="link" href="https://play.google.com/store/apps/details?id=com.twitter.android&amp;hl=en&amp;gl=US">Twitter</a></li><li><a class="link" href="https://play.google.com/store/apps/details?id=in.swiggy.android&amp;hl=en_IN&amp;gl=US">Swiggy</a></li><li><a class="link" href="https://play.google.com/store/apps/details?id=com.soundcloud.android&amp;hl=en_IN&amp;gl=US">Soundcloud</a></li><li><a class="link" href="https://www.dropbox.com/install">Dropbox</a></li><li><a class="link" href="https://play.google.com/store/apps/details?id=com.bumble.app&amp;hl=en_IN&amp;gl=US">Bumble</a></li><li><a class="link" href="https://play.google.com/store/apps/details?id=com.grabtaxi.passenger&amp;hl=en&amp;gl=US">Grab</a></li></ul><h2 class="heading-node" id="qa3n1xr2j" style="text-align: justify">Code Snippet Implementation</h2>To use Compose effectively, it's essential to have the following code snippet properly implemented in projects. This code serves as the key to unlock the full potential of Compose and leverage its capabilities for development tasks.<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2023/06/MicrosoftTeams-image-12.webp" alt="M2P Fintech" title="" width="100%" height="142">Don't forget to include the dependencies to enable Jetpack Compose functionality in the project. These dependencies are crucial to ensure that Compose works seamlessly with all its powerful features available for developers. Ensure that these required dependencies are added to the project configuration.<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2023/06/MicrosoftTeams-image-13.webp" alt="M2P Fintech" title="" width="100%" height="191">For more details, refer to the <a class="link" href="https:// developer.android.com/jetpack/compose/setup.">Official Android Docs.</a>It's clear that the future of Android UI development is here. By embracing this toolkit, developers can unlock a world of endless possibilities and create stunning, dynamic, and highly responsive user interfaces. From reducing code complexity to empowering seamless integration with Android platform APIs, Jetpack Compose has opened new doors for developers everywhere.So, whether you're an experienced developer or just starting your journey in the world of Android app development, Jetpack Compose can give you what you want.Want to know how to make the most of Jetpack Compose?Write to us at <a class="link" href="mailto:business@m2pfintech.com">business@m2pfintech.com.</a> Our expert team would love to chat with you.

How to Create Stunning UIs for Android with Jetpack Compose

<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2023/06/FRM-Blog-Banner-2-1-2.webp" alt="M2P Fintech" title="" width="100%" height="253"><ul class="list-node" id="bbuv8bhp5"><li>Over 95,000 UPI fraud cases were reported in 2022-23.</li><li>More than 42% of Indians experienced financial crimes.</li><li>95% of Indian firms experienced new types of cyber frauds.</li></ul>Cyber frauds are surging every day.&nbsp; You may have experienced it, or you would have come across a cyber fraud victim. Living in an era of the highest technological sophistication and still falling prey to cyber frauds sounds like an irony.&nbsp;The global digital payments market is expected to grow at 15.5% and reach $111 billion in 2023 and hit $198 billion by 2027. Payment modes such as UPI, credit/debit cards, digital wallets, and other contactless modes have gained a lot of prominence due to their speed, convenience, and security. Despite phenomenal advances, cyber frauds in the form of phishing, spamming, SIM swapping, account takeover frauds, etc., increase by the minute. Hackers are evolving with technology and adopting sophisticated strategies to infiltrate banking infrastructure and commit cybercrime.&nbsp;This is why organizations need a robust Fraud and Risk Management (FRM) system to defend against data theft, breaches, and other forms of cybercrimes. Before getting into the details, let's first understand what is fraud and risk management.<h2 class="heading-node" id="k1k07wioo">What is Fraud and Risk Management?&nbsp;</h2>Fraud Risk Management is a systematic approach to reduce frauds, especially transaction related. It encompasses identifying, managing, and mitigating breaches in addition to preventing frauds and risks. Businesses that include financial institutions, ecommerce companies, healthcare providers, government agencies, and insurance companies, use FRM systems to combat risks associated with digital transactions.In this blog, we'll discuss how to design an FRM system and best practices to follow while designing. Before diving into it, let us go through the usual cyber frauds because knowing how hackers function can help you create an FRM system capable enough to handle those frauds.Here we go!&nbsp;<h2 class="heading-node" id="nm6kjndnr">Types of Cyber Fraud&nbsp;</h2><img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2023/06/Design-request-for-FRM-blog_2_V2-1.webp" alt="M2P Fintech" title="" width="100%" height="148"><h3 class="heading-node" id="u16fnp09p">Account Takeover (ATO) Frauds &nbsp;</h3>Account takeover fraud occurs when hackers gain unauthorized access to a victim's online account and take control, often without their knowledge or consent.&nbsp;&nbsp;<h3 class="heading-node" id="29imu321k">Phishing&nbsp;</h3>Phishing is an attacking method used in ATO where the hacker sends an email to a user posing as a genuine entity. The user gets tricked by believing the email to be legitimate and discloses their private information.&nbsp;<h3 class="heading-node" id="mdhb5jdk8">Brute-force Attack&nbsp;</h3>Hackers try a combination of username/password on multiple accounts till they crack into a user’s account.&nbsp;<h3 class="heading-node" id="1qp070zis">SIM Swap and Device-related Fraud&nbsp;</h3>SIM swap is a technique used by fraudsters to get control of a user’s phone number. By controlling the phone number, hackers can take advantage of two-factor authentication to access the user's devices, their bank accounts, social media accounts, and more.&nbsp;<h2 class="heading-node" id="m1sj54yqb">Authentication Protocols to the Rescue</h2>Most organizations have some sort of strategy to defend themselves from frauds. Some organizations use a proper FRM system, some follow stringent security protocols such as 3-D Secure Authentication (3DS) and Two-Factor Authentication (2FA) as an additional security layer. But the deployment of these security protocols depends on the marketplace. Many markets (such as the United States) do not use 3DS because they prefer customer convenience over security. This may lead to frauds unless strong controls are in place. On the other hand, in markets such as India where there is a mandate for 2FA, fraudsters still persuade gullible customers to share OTPs. Not taking requisite measures can give fraudsters access to stolen card credentials. They try their luck at different merchants to see if they can go through and bypass risk controls.&nbsp;The best way to battle cyber frauds is to design a risk engine capable of not only identifying existing frauds but also new ones.&nbsp;<h2 class="heading-node" id="drco1veje">How can you Design a Robust FRM to Tackle Fraud?</h2><ul class="list-node" id="08lc91nt7"><li>Accessing requisite data</li><li>Introducing the right balance between frictionless flows and challenges</li><li>Interfacing FRM with external systems</li><li>Embracing advanced risk checks</li><li>Adopting a combination of rules and models</li></ul><h3 class="heading-node" id="akzmswrji">Accessing Requisite Data&nbsp;</h3>In this data-driven world where frauds are mutating in novel ways like the Corona virus, we need requisite data to develop an efficient and holistic FRM system.&nbsp;<h4 class="heading-node" id="ph9lh45q3">Types of data we need for fraud management&nbsp;</h4><h5 class="heading-node" id="7t9bcfucg">Transaction data&nbsp;</h5>All financial data related to digital transactions, including credit card transactions, bank transfers, wire transfers, etc. This data must include the transaction amount, date, time, location, and other details. This data is used to build a historical profile of the customer.&nbsp;<h5 class="heading-node" id="8p7zx77jg">User data&nbsp;</h5>User information such as name, address, phone number, email address, employment, income, credit history, etc.&nbsp;<h5 class="heading-node" id="sohlvxzkd">Device data&nbsp;</h5>Device type, operating system, browser type, and other technical details.&nbsp;<h5 class="heading-node" id="1749otx7p">Geolocation data&nbsp;</h5>Location of the transaction - IP address, GPS coordinates, and other data that can be used to determine the user's location.&nbsp;<h5 class="heading-node" id="0s8b81av5">Behavioral data&nbsp;&nbsp;</h5>Browsing history, search history, and other online activities that may be relevant to the transaction.&nbsp;<h5 class="heading-node" id="vbouas7eo">External data</h5>Information from external sources, such as credit bureaus, public records, and other third-party sources that can provide additional insights into the user's risk profile.&nbsp; Now that you have all the requisite data for building an FRM system, what next?&nbsp;<h4 class="heading-node" id="zt4bvsebg">Customer profiling&nbsp;</h4>Customer profiling is a process in which a business or organization collects and analyzes information about their customers and analyzes their behavior, preferences, and potential risks.Comprehensive customer profiling enables business &amp; risk teams to design the most appropriate models &amp; rules to mitigate fraudulent transactions.&nbsp;&nbsp;<h3 class="heading-node" id="k0o72ows2">Introducing the Right Balance between Frictionless Flows and Challenges&nbsp;</h3><img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2023/06/Design-request-for-FRM-blog_3_V3_2000X1000.webp" alt="M2P Fintech" title="" width="100%" height="253">A natural question arises when developing an FRM system,Why not increase the number of authentication steps to increase security and prevent cybercrime?Yes, the authentication journey can be made more complex but will definitely impact the user experience.What will the user feel if they are subjected to strenuous procedures just to make a normal digital transaction?On the other hand, if the number of authentication steps are fewer/none, the probability of a hacker breaking into the system tends to go high. That is why, while designing a risk engine, it is important to strike a balance between frictionless user experience and introducing a challenge. Having a configurable, customizable challenge experience is critical to identifying different fraud strategies.&nbsp;&nbsp;<h3 class="heading-node" id="rbhucvi5z">Interfacing FRM with External Systems</h3>To enhance the security capabilities with the ever-evolving frauds, you need to interface the FRM engine with external systems such as whitelists, hotlists, spam lists, disposable lists, etc. By regularly pulling data from these systems, you can keep the FRM updated in real time.Let’s take a scenario.A user lost his credit card. He immediately alerts the card issuer to block the card. The issuer hotlists the lost credit card, meaning the card is permanently blocked. Now, when a hacker tries to make a transaction using the lost card credentials, an FRM system can classify it as fraudulent if it is interfaced with hotlists.&nbsp;Integrating hotlist information into the Fraud Risk Management (FRM) system can significantly enhance an organization's ability to identify and manage potential risks. These risks may include money laundering, fraud, terrorist financing, etc. By leveraging this integration, organizations can proactively mitigate these risks and ensure compliance with relevant regulations.&nbsp;<h3 class="heading-node" id="dwd2niduz">Embracing Advanced Risk Checks</h3>Behavioral biometrics distinguishes genuine users from criminals by analyzing users’ physical and cognitive digital behavior. By assessing user behaviors such as mouse movements, typing cadence, swipe patterns, device orientation, etc., and comparing it with the historical user profile, the behavior can be classified as either good or bad.For example, genuine users practice different paces and navigation patterns, whereas cybercriminals rely on copy, paste, and automated programs. Genuine users use the autofill feature to fill in personal details, whereas criminals enter the data manually.&nbsp;<h3 class="heading-node" id="t9lliq7kr">Adopting Rules and Models</h3>When building an FRM system, many organizations solely rely on Machine Learning (ML) models for fraud detection. ML models help the FRM system scale, adapt, and visualize emerging threats and frauds.Does that mean you should stop following a rule-based approach?After all, why should anyone still follow the rules when there are efficient ML models that can learn by themselves?Though the ML-based approach facilitates real-time processing and can automatically detect anomalies and unique frauds, it takes time to set up and train the models. Moreover, an ML-based approach can get tricky and complicated, whereas rules are good for certain edge cases where a rule must be deployed quickly to arrest a threat.That is why it is important to design a risk engine that combines rules and models.After building a risk engine based on the above steps, it is important to test the engine periodically in real-time and get feedback on its performance. That is the job of a fraud/risk analyst. Then, they improve the system by fine-tuning the rules and models.&nbsp;<h2 class="heading-node" id="ju5uswrou">M2P Fraud and Risk Monitoring System</h2>M2P’s Fraud Risk Monitoring system leverages all the best practices in designing a risk engine. It evaluates the risk associated with various use cases (transaction, onboarding, login, and other non-payment scenarios) across all channels, including cards (authentication &amp; authorization), BNPL, core banking, payment gateway, UPI, etc.&nbsp; Our FRM system combines many sources of data and performs customer profiling by interfacing with external system. We deploy advanced risk checks such as behavioral biometrics to classify genuine users and follow a holistic approach that combines rules and models.&nbsp;<h3 class="heading-node" id="0yp3vmls5">Why M2P FRM?&nbsp;</h3><h4 class="heading-node" id="nlv820xtf">Effective Rule and Data Management&nbsp;</h4>Our FRM lets the user upload historical data, review rule performance, and deploy it after fine tuning the rules. Depending on the implementation of risk rules, the users can run the system in a listening mode (without uploading any historical data). In this case, the source system receives the risk score but does not make business decisions. Users can turn off the listening mode once the risk rules have been finalized.&nbsp;If users do not have any pre-defined rule set, our system provides a standard rule set covering all mandatory and a few optional/ conditional parameters.&nbsp;<h4 class="heading-node" id="eyi1c6dvd">Customizable Case Management Modules&nbsp;</h4>The case management section allows the issuer to flag a certain type of transaction as a case (based on a case definition) and conduct further analysis to determine if the transaction was genuine/fraudulent. The case management flow can be customized as per business &amp; risk preference.&nbsp; Our Case Management module can help you:&nbsp;<ul class="list-node" id="tmaa6nywo"><li>Set case definition (automatic rule) to flag certain transactions as cases&nbsp;</li><li>Prioritize cases as high/medium/low&nbsp;</li><li>Assign cases to be investigated by analyst&nbsp;</li><li>Automate case investigation via IVR/SMS/WhatsApp&nbsp;</li><li>Assign and reassign cases based on category, ageing, priority, etc.&nbsp;</li></ul><h4 class="heading-node" id="kt5dbo5zy">Comprehensive Reports and Dashboard section&nbsp;</h4>From fetching detailed transaction report, rule performance report to case management report till managing overall FRM system performance, filtering the dashboard by score, transaction outcome, genuine vs. fraudulent transactions, etc., our FRM gives a comprehensive reports and dashboard section to the users.&nbsp;<h4 class="heading-node" id="dxbq3wuqi">Seamless Feedback &nbsp;</h4>Our FRM eases the life of the fraud analysts. Whenever the analysts come with feedback, it is easy for them to incorporate into our risk engine.&nbsp;At M2P, we have had the privilege of collaborating with a diverse range of clients, and built lasting relationships with banks, NBFCs, and neobanks. Our team consists of seasoned professionals who possess a deep understanding of market trends and industry standards. With this knowledge, we craft innovative solutions that effectively combat cyber fraud and provide our clients with the protection they need.Do you want to protect your customers from cyber frauds?&nbsp; Reach out to us at <a class="link" href="mailto:business@m2pfintech.com">business@m2pfintech.com</a>!&nbsp; This blog was co-written by <a class="link" href="https://www.linkedin.com/in/madhusudhanramakrishnan/">Madhusudhan Ramakrishnan</a>, Associate Vice President – Product Management, M2P.&nbsp;<a class="link" href="https://m2pfintech.com/newsletter/">Subscribe</a> to our newsletter and get the latest fintech news, views, and insights, directly to your inbox.&nbsp; Follow us on <a class="link" href="https://www.linkedin.com/company/m2pfintech/mycompany/">LinkedIn</a> and <a class="link" href="https://twitter.com/m2pfintech">Twitter</a> for insightful fintech tales curated for curious minds like you.&nbsp;

Building a Robust Fraud and Risk Management (FRM) System

<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2023/06/2000X1000.webp" alt="M2P Fintech" title="" width="100%" height="358">Identity theft among pensioners is a rising pandemic that needs to be eradicated. Impersonating senior citizens by stealing or faking their life certificates with a motive to swindle their income is nefarious. The crime not only pushes pensioners into poverty but also piles lawsuits and losses onto pension disbursing authorities.&nbsp;<h2 class="heading-node" id="lkzhcveaf" style="text-align: justify">Pensioner Plight&nbsp;</h2>In India, there are over one crore pensioners, including those from the central government and defense forces. To receive pension, a retiree must submit their life certificates annually to the Pension Disbursing Authority (PDA). Banks, post offices, and other financial institutions serve as PDAs, that disburse pensions after authenticating the life certificates of pensioners.&nbsp; The mere process of physically receiving a life certificate and delivering it to the PDA is a significant effort for elderly pensioners, as the process is slow and tedious. You can only imagine the plight of pensioners who are sick, bedridden, or even living abroad. Accessing and moving the physical life certificate for pensioner verification is a grueling task for seniors.&nbsp;<h2 class="heading-node" id="rm4quf8we" style="text-align: justify">Launch of Jeevan Pramaan&nbsp;</h2>To make life certificate issuance convenient, the Indian government launched a digital service called Jeevan Pramaan in 2014. However, the service mandates senior citizens to have digital literacy. They also had to follow rigid steps and download multiple software. Seniors who are not tech-savvy face significant pressure in the process.&nbsp; This got us thinking about how we can help. We wanted to address the issues associated with the verification and distribution of digital life certificates.&nbsp;<h2 class="heading-node" id="gloui3z7e" style="text-align: justify">Our Solution: Digital Life Certificates&nbsp;</h2>We introduced the Digital Life Certificate (DLC) solution to streamline pensioner verification by making the process, quick, convenient, and seamless. Our DLC platform provides a flexible and convenient solution that can be accessed from the comfort of the pensioner's own home.&nbsp; And the best thing was our process saved significant time and effort for both the pensioner and the disbursing organization. We also customize the solution to suit specific requirements.&nbsp;<h2 class="heading-node" id="1srmxvygg" style="text-align: justify">Key Highlights of the DLC Solution&nbsp;</h2><ol class="list-node" id="09ttsi9if"><li>Multi-browser compatible web platform for generating DLC&nbsp;</li><li>Custom rule-based business engine&nbsp;</li><li>Active/Passive liveness detection&nbsp;</li><li>AI/ML-based Optical Character Recognition (OCR) techniques&nbsp;</li><li>Aadhaar OTP-based e-KYC or Digilocker&nbsp;</li><li>Integration with SMS gateway and email to push notifications to pensioners&nbsp;</li></ol><h2 class="heading-node" id="whd3zkfr1" style="text-align: justify">Pensioner Identity Verification Process Flow&nbsp;</h2>The pensioner’s identity verification process can take place in three ways&nbsp; A. Agent-assisted – The pensioner gets on a call with an agent to get the Digital Life Certificate. Both the call recording and the live picture will be saved.&nbsp; B. Self-assisted – The pensioner records himself during the process. He/she will answer the questions displayed on the screen and captures a live photo.&nbsp;&nbsp; C. Selfie-based – The selfie-based flow is customizable, where the customer can record himself by capturing an Officially Valid Document (OVD) or answering security questions displayed on the screen, and the selfie is captured.&nbsp;&nbsp; Irrespective of the process flows, the recordings will be sent to the auditor for review to verify the pensioner.&nbsp; Among these, the self-assisted process flow is more commonly used.&nbsp;<h2 class="heading-node" id="oj4ndy737" style="text-align: justify">How can Pensioners Secure Digital Life Certificates in a Self-assisted Process Flow?&nbsp;</h2>Our web-based DLC solution provides a hassle-free and convenient way for pensioners to obtain their digital life certificates in three simple steps.&nbsp; Step 1: The pensioner accesses the DLC platform via the link provided, input their data, and completes OTP-based mobile verification.&nbsp; Step 2: The pensioner then proceeds to complete Digi Locker-based Aadhaar verification using their Aadhaar number.&nbsp; Step 3: Liveness check is done using Active Liveness Detection, which involves performing gestures or reading out an OTP/statement suggested by the application.&nbsp; Step 4: The pensioner is directed to the DLC process summary. The DLC will be available in a pdf form, and upon receiving the DLC, a confirmatory message is sent to the pensioner’s mobile/email.&nbsp;<h2 class="heading-node" id="7n4jb2vwr" style="text-align: justify">Live Use Cases - Digital Life Certificates&nbsp;</h2>Odisha is the first state in India to provide a Digital Life Certificate (DLC) facility through Video KYC. We collaborated with the Odisha government and National Insurance Company Limited (NIC) in West Bengal to deliver digital life certificates to their beneficiaries/pensioners.&nbsp;&nbsp; Telangana, Uttar Pradesh, Tamil Nadu, and Andhra Pradesh are a few other states in India that have implemented our OTP-based digital-KYC solutions.&nbsp;&nbsp; So far, we have issued digital life certificates to over 5 lakh pensioners across the country through our web-based platform.&nbsp;&nbsp; Thanks to the in-hand availability of cutting-edge technologies and the three well-organized robust process flows, our platform is readily accessible to pensioners.&nbsp; Do you want to streamline pension verification?&nbsp; Write to us at <a class="link" href="mailto:business@m2pfintech.com">business@m2pfintech.com</a>.&nbsp;<a class="link fui-Link ___1qmgydl f3rmtva f1ewtqcl fyind8e f1k6fduh f1w7gpdv fk6fouc fjoy568 figsok6 f1hu3pq6 f11qmguv f19f4twv f1tyq0we f1g0x7ka fhxju0i f1qch9an f1cnd47f fqv5qza f1vmzxwi f1o700av f13mvf36 f1cmlufx f9n3di6 f1ids18y f1tx3yz7 f1deo86v f1eh06m1 f1iescvh ftqa4ok f2hkw1w fhgqx19 f1olyrje f1p93eir f1h8hb77 f1x7u7e9 f10aw75t fsle3fq" href="https://m2pfintech.com/newsletter/" target="_blank" rel="noreferrer noopener">Subscribe</a>&nbsp;to our newsletter and get the latest fintech news, views, and insights, directly to your inbox. 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Streamlining Pension Verification: A Step-by-Step Guide to Digital Life Certificates

<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2023/05/FRS-Banner.webp" alt="Facial Recognition System - M2P" title="" width="100%" height="531">Facial recognition technology today goes beyond just unlocking your smartphone. 7 out of 10 governments worldwide use the technology on a large scale for surveillance, security, and pandemic control. &nbsp;Businesses are deploying facial recognition technology for <a class="link" href="https://m2pfintech.com/blog/transform-digital-onboarding-with-vkyc/">VKYC</a>, payment authorization, access control, and customer experience, to name a few. Use cases range across industries like financial services, educational institutions, transport services, legal enforcement, and private businesses, among several others. Valued at $6.28 billion, the facial recognition market is expected to grow at 16% CAGR to reach $11.35 billion by 2027. With increased security and convenience as the two potential benefits, this <a class="link" href="https://m2pfintech.com/kyc-suite/">digital identification technology</a> has been increasingly deployed over the past decade.Before heading further into the world of facial recognition, let’s take a quick glimpse into how identity verification happens conventionally.<h2 class="heading-node" id="fxvravy6t" style="text-align: justify">Traditional Identity Verification</h2><ul class="list-node" id="6khqeq0yj"><li>People had to only rely on physical identification documents such as IDs, passports, and driving licenses to verify their identity.</li><li>Legal entities had to depend on eyewitnesses or labor-intensive manual identification techniques to identify suspects.</li><li>Security at airports, government buildings, and other high-security facilities was mostly based on manual checks. Even today, metal detectors and X-ray scanners are used for verification.</li></ul><h2 class="heading-node" id="mcouj92e1" style="text-align: justify">Shift to Modern Facial Recognition Technology</h2>The ability of <a class="link" href="https://m2pfintech.com/blog/5-reasons-why-banks-need-behavioral-biometrics/">behavioral biometrics</a> and modern facial recognition technology to authenticate IDs has been revolutionary. Irrespective of whether you use it in transportation, aviation, commerce, or as a security solution, the technology delivers key advantages in speed, accuracy, and convenience. Further, facial recognition works well in integration with a wide range of other technologies, especially security software. It is easy to incorporate into existing security systems at a low cost, enabling a win-win situation for organizations that seek a frictionless solution. A few notable implementations are listed below.<ul class="list-node" id="agfv0czy0"><li>Law enforcement agencies can use facial recognition technology to quickly identify suspects by matching their faces with the existing database.</li><li>Some countries like China have started using facial recognition technology for border control, to verify the identity of travelers entering and leaving the country.</li><li>In the airline industry, facial recognition is already employed to offer speedy, accurate identification verification at every stage of the passenger journey, including check-in, luggage drop, security screening, retail transactions, and boarding lineups.</li></ul><h2 class="heading-node" id="kcgq6zfnu" style="text-align: justify">M2P Facial Recognition System (FRS)</h2>Facial recognition/detection, <a class="link" href="https://m2pfintech.com/blog/unmask-the-power-of-face-liveness-detection-integrating-google-ml-kit-into-your-flutter-app/">liveness check</a>, and matching are components of our facial technology. To streamline citizen authentication across several services, we've developed a cloud-based FRS solution that can be integrated with current government databases and applications. Using state-of-the-art AI algorithms for biometric identification, we comply with international standards for privacy and protection, to make it easy for citizens to access government services in a secure and expedited manner. We work with the private firms and governments in Andhra Pradesh, Telangana, and Orissa on the following projects.<ul class="list-node" id="tfypywqbe"><li>Group face attendance solution for marking attendance in schools (for 14 lakh students)</li><li>Online counseling for degree colleges for intermediate pass-out students in Telangana</li><li>Pension services through our <a class="link" href="https://m2pfintech.com/blog/transform-digital-onboarding-with-vkyc/">video KYC</a> solution in Orissa</li><li>Driving license and vehicle registration without a personal visit to the Telangana RTA department</li><li>Face-based attendance application to ambulance drivers to mark their shift-wise attendance for private firms.</li></ul><h3 class="heading-node" id="hxw5gf5nw" style="text-align: justify">Key Benefits</h3><ul class="list-node" id="z1lxv8y56"><li>Contactless: Our <a class="link" href="https://m2pfintech.com/blog/how-is-ai-changing-the-financial-industry-top-6-use-cases-in-fintech-and-banking/">AI</a> &amp; ML-enabled advanced facial attendance system is based on contactless technology, which means it can be used to identify individuals without requiring physical contact. It can even mark attendance within a safe distance of 6 feet. Being contactless by nature, it ensures system functionality at crucial times.</li><li>Flexibility: Facial attendance solution offers a greater amount of flexibility since it can be operated at edge level without any internet connectivity. It can capture single attendance and group attendance based on custom requirements.</li><li>Instantaneous: Facial recognition is instant and can provide results in real-time, meaning that the system can identify a person as soon as their face is captured by a camera.</li><li>Fool-Proof: Our FRS solution has the potential to complete the verifications with the best of accuracy and reliability making it the fool-proof solution for identity verification.</li><li>Saves cost and effort: FRS is a potential cost-saving solution that reduces the need for human personnel to manually identify individuals which in turn prevents errors and biases in identification.</li></ul><h3 class="heading-node" id="y6a4ohx41" style="text-align: justify">Use Cases of Facial Recognition</h3>We rolled out our advanced Facial recognition solution involving Facial technology, Geo-fencing, and De-duplication modules to different government and financial institutions across the Telangana state. Below are the use cases where FRS plays a major role. Subsidy Management System: FRS integrations enable seamless monitoring of subsidies for government entities where all the beneficiaries need to be authenticated to prevent misuse. The distribution of subsidies can be managed centrally, making it easier to track and monitor the use of funds. FRS can capture and store data on beneficiaries, including their personal information, income, and eligibility for the subsidy. By doing so, it ensures that only those who meet the criteria receive the subsidy, and that there is no duplication of benefits. The facial system can identify any irregularities in the distribution of funds, such as multiple claims by the same beneficiary or claims by ineligible beneficiaries. Citizen Identification: FRS aids in the rapid identification of citizens, decreasing the time and resources required for manual identification processes. This customer identity check is highly accurate, reducing the risk of errors in identifying individuals. FRS can improve security by adding an extra layer of identification and verification. Customer Onboarding: FRS can be used for customer onboarding across industries like banking, insurance, and several others. It can streamline the <a class="link" href="https://m2pfintech.com/blog/crack-the-kyc-jigsaw-ease-onboarding-compliance/">KYC </a>and onboarding process by verifying the identity of customers remotely, which saves time and reduces costs. The application helps mitigate any risks associated with using FRS for customer onboarding. Attendance Marking: Using FRS technology, attendance marking can be done in a matter of minutes for a group of 50 students, as opposed to traditional methods of manual marking which can take much longer. This is because FRS technology can identify and mark attendance for multiple individuals simultaneously, without the need for physical contact or manual input. It helps to detect up to 8 faces in a single frame, it takes only 2 to 3 seconds per attendee. Let's discuss the attendance marking use case in detail.<h3 class="heading-node" id="w387kl1am" style="text-align: justify">How Does Facial Recognition Technology Enable Attendance Marking?</h3>Step 1: Onboarding process and integration&nbsp; First, the FRS application must be onboarded and integrated with the existing system.<ul class="list-node" id="lhqnxh1si"><li>Attendee/attendees are registered in the portal or the mobile app</li><li>Data is integrated to the system using department level <a class="link" href="https://m2pfintech.com/blog/api-the-power-that-drives-new-age-banking-ecosystems/">APIs</a></li><li>Attendee details can be customized based on entity requirement</li></ul>Step 2: Registration process The next step is registration where participants can choose to sign up with or without an Aadhar number based on the availability. With Aadhaar<ul class="list-node" id="9k21lkoqb"><li>Register attendee with Aadhaar in FRS system</li><li>Perform Aadhaar-based e-KYC</li><li>Aadhaar details of the attendee are fetched</li><li>Perform liveness check by capturing live photo</li><li>Face match between photo from Aadhaar and live photo</li><li>Enrolment completed</li></ul>Without Aadhaar<ul class="list-node" id="0xiwzzeyh"><li>Register attendee in AI FRS system</li><li>Details of individual are fetched</li><li>Capture live photo of attendee</li><li>Perform liveness check</li><li>Enrolment completed</li></ul>Step 3: Attendance Marking Once the registration is complete, attendance of a single person or a group can be captured.<ul class="list-node" id="vl0je38d2"><li>Open application and capture selfie/photo</li><li>Attendance recorded to edge level</li><li>Attendance marking is done in 2 ways</li><li>1:N - To capture the attendance of 1 person in less than a second</li><li>N:N - To capture the attendance of up to a 50-member group in less than 2 minutes</li></ul>Step 4: Reports and Live Dashboards Monitoring With the integrated dashboard, you can easily monitor all the reports generated by this solution. Soon after the completion of the capture and authentication processes, the reports are instantly generated. With the help of this software, it is possible to continuously monitor and keep an eye on the live monitoring dashboard of the FRS system.<h3 class="heading-node" id="t62u8gnhl" style="text-align: justify">Proven Impact of FRS in Attendance Marking</h3><ul class="list-node" id="h78758cmv"><li>Lead time taken to enroll an attendee is less than 5 seconds.</li><li>Liveness check accuracy is 100%</li><li>Face matching accuracy is 100%</li><li>False acceptance ratio is less than 0.1%</li><li>False rejection ratio is less than 0.1%</li></ul>Apart from the results listed above, our facial recognition system provides the benefits below.<ul class="list-node" id="j47pegcmu"><li>Marks attendance offline</li><li>Syncs data automatically when connectivity is restored (after network outage)</li><li>Contactless capture within 5 feet distance</li><li>Live monitoring with MIS reports</li><li>Geo location binding</li></ul>Our facial recognition system is a versatile solution that can be easily and quickly integrated into any system without any hassle.<h2 class="heading-node" id="f1n8tolnx" style="text-align: justify">Future of Facial Recognition</h2>Face recognition technology is the future of identity verification. It holds a wide scope for potential innovation in security, marketing, healthcare, retail, and entertainment. We can expect to see a significant improvement in the accuracy of face recognition systems for more reliable identification in complex and challenging situations. Want to know more about facial recognition solutions? Write to us at <a class="link" href="mailto:business@m2pfintech.com">business@m2pfintech.com</a>. Make your identity verification and authentication a breeze!

How has Facial Recognition revolutionized Identity Verification and Authentication?

<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2023/05/hero-banner-2.webp" alt="M2P Fintech" title="" id="fudvus1lb" width="100%" height="253">The pandemic changed the world as we know it, and banking was no exception.Customers began preferring mobile-first, secure, personalized, and digital payment methods over direct ones to transact, and banks had to adapt to survive.Traditional banks had to find efficient ways to drive customer experience and security. They embraced digital transformation rapidly and implemented new technologies to offer customers a seamless banking experience.Banks had to ensure that their Debit Card Management Systems (DCMS) were equipped to handle personalization, security, and the surge in usage. They had to adopt measures such as fraud detection and prevention systems, real-time transaction monitoring, and enhanced security protocols to ensure the safety of customer data.But running a debit card operation can be a challenging task for banks. Pressure from evolving customer preferences, competition from contactless payment modes,&nbsp; and evolving regulatory changes severely affect the debit card landscape. Legacy banking systems are plagued by cost and effort bottlenecks that further impact the operational efficiency and profitability of banks.Solution: Next-gen Debit Card Management System&nbsp;To survive and thrive, banks need to modernize their core debit card infrastructure with futuristic, scalable, and innovation-friendly technology. Modern Debit Card Management Systems transform the way banks handle debit card operations. From super-quick transaction speed, personalized customer experiences, to enhanced security features and seamless integrations, modern debit card platforms are reshaping the way banks manage debit cards.Before going head-on into what DCMS is and how it can improve efficiency, let’s take a quick trip down memory lane.<h2 class="heading-node" id="o2c1947a5">Debit card, over the years</h2>Debit cards have always been a ubiquitous part of the digital financial ecosystem enabling inclusive access to everything from subsidies, disbursals, remittances, bill payments, and more. It is widely used for various transactions such as ATM withdrawals, POS purchases, and online payments.&nbsp; Factors like freedom from debt, convenient card-based payment features, and rewards in the form of cashback have driven the shift in customer behavior towards debit cards. The security, efficiency, and convenience offered by debit cards played a vital role in India’s journey toward a cashless economy.India's debit card journey started in the late 1980s with technological advancements. SBI Cash Plus card was launched in 1987, followed by Electronic Funds Transfer in 1994. INFS launched in 1997, and in 2000, RBI introduced two-factor authentication for online transactions. Two-factor authentication for online transactions using debit cards came in 2010. RuPay debit card was launched in 2014, and demonetization in 2016 boosted debit card usage.<h3 class="heading-node" id="2y29tx40t">Post 2020</h3>During and after the pandemic, <a class="link" href="https://m2pfintech.com/blog/rise-of-wearables-in-payments-and-banking/">wearables</a> such as bracelets, rings, and watches linked to debit card accounts served as a safe, contactless way to transact. These wearables use <a class="link" href="https://m2pfintech.com/blog/nfc-payments-simplifying-payment-space/">Near Field Communication</a> technology to process transactions in real-time, making payments quickly and easily.<h3 class="heading-node" id="kbveoma2c">Fast forward to 2023</h3>As of January 2023, there were over 945 million active debit cards in India. Industry experts predict that the usage of debit cards in the country will continue to grow, with an estimated increase of 84.6 million cards by 2028.Banks issue various <a class="link" href="https://m2pfintech.com/blog/debit-card-issuance-101-all-you-need-to-know/">types of debit cards</a> based on the payment platform, technology, and usage. They offer banks an excellent opportunity to cater to diverse needs and expand their customer base.But, here comes a crucial question.Are banks using the right debit card stack?You’ll know if you continue reading.Traditional banks use legacy debit card management systems with limitations that inhibit the capability of the bank to innovate, scale, and grow. Here’s a quick look into the bottlenecks that hinder banks from delivering the best experience to customers.<h2 class="heading-node" id="yhwpo2fqf">Bottlenecks in legacy DCMS</h2><ul class="list-node" id="8q6zo3njp"><li>Scalability can be a significant issue since traditional systems are monolithic and difficult to scale horizontally.</li><li>Use of multiple vendors for different stages of the debit card management process leads to delays in the card issuance process and quality control issues.</li><li>High maintenance costs are a key problem faced while using a traditional DCMS, as they are complex and require additional resources and time-consuming operations.</li><li>Inflexibility of legacy systems causes delays in system upgrades and makes it challenging for banks to keep up with technological advancements.</li><li>Lack of integration between systems leads to delays, errors, and fraud.</li></ul>To overcome these bottlenecks, banks need to transition to modern and innovative DCMS, which provides optimal customer experience, increases competitiveness, and growth.<h2 class="heading-node" id="jtcuynv48">Traditional vs. Modern Debit Card Management System</h2><img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2023/05/banner-2.webp" alt="M2P Fintech" title="" width="100%" height="253">The traditional DCMS was limited in terms of personalization, accessibility, the application process, transaction limits, alert notification, and security. However, with the advancements in technology and changing customer expectations, modern DCMS has transformed the banking experience.Modern DCMS offers a greater degree of personalization with options to choose card designs, transaction limits, and even reward programs that suit the needs of customers. Additionally, they offer more accessibility via mobile apps and online platforms, allowing customers to easily manage their accounts and track their expenses.<h2 class="heading-node" id="j61fjxrw3">Modern debit card platform: Introducing M2P DCMS</h2>M2P DCMS is a 360° card management solution that offers fast, scalable, and customizable debit card capabilities, including product setup, card issuance, inventory management, EFT switch, and card management services.<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2023/05/banner-3.webp" alt="M2P Fintech" title="" id="fu8fkz06u" width="100%" height="203"><h3 class="heading-node" id="mnpwao2m5">Key features</h3><ul class="list-node" id="irafdwc04"><li>Robust API for platform integration</li><li>Seamless onboarding</li><li>Personalized rewards program</li><li>Effective Personal Finance Management (PFM)</li><li>Hassle-free reconciliation &amp; settlement</li><li>Intelligent Access Control Server (ACS) System</li><li>Inclusive set of inbuilt reports &amp; dashboards</li><li>Inbuilt security &amp; compliance</li></ul><h3 class="heading-node" id="bez8ah3y3">Seamless API integrations</h3>Our API-driven DCMS offers a flexible and scalable platform for banks to innovate and adapt to changing customer needs and market conditions.&nbsp; Seamless API integration and communication enable easy integration with third-party services, namely Personal Financial Management (PFM) tools, fraud detection software, and loyalty programs. API integration plays a vital role in enabling the following.<ul class="list-node" id="1mln0fnna"><li>Real-time data exchange</li><li>Automated workflows</li><li>Streamlined processes</li><li>Improved data accuracy</li><li>Better customer experience</li></ul>With API integration, customers can access their account data and perform transactions via different modes, namely online portals, and mobile apps. They can also receive real-time notifications of their account activity, namely purchases, withdrawals, and balance updates. Banks are allowed to enhance their offerings and create more personalized experiences for their customers.<h3 class="heading-node" id="8s9tdho6k">Hyper-personalization</h3>Tailoring offers and services to customers based on individual preferences, spending patterns, and other relevant data is very important. It allows banks to create a more personalized customer experience which in turn improves customer satisfaction, loyalty, and engagement. This helps banks to detect and prevent potential security threats and fraudulent activity in real-time. With modern DCMS, banks can take proactive measures to prevent fraud and ensure the security and safety of customer funds.<h3 class="heading-node" id="1xgxx92xc">Security</h3>To deliver differentiated card programs with the utmost security, banks need an advanced DCMS.&nbsp; The security features must be sophisticated to thwart fraud and cyber-attacks. This is where modern DCMS comes in, offering a range of advanced security features such as the following.<ul class="list-node" id="rr9fxmt9h"><li>Multi-factor authentication</li><li>Encryption</li><li>Tokenization</li><li>Real-time fraud detection</li><li>AI/ML algorithms</li></ul>These systems give users more control over their accounts and enable them to set up alerts and notifications for any suspicious activity, further enhancing the security of their transactions.<h3 class="heading-node" id="3d66b1ndk">Scalability</h3>As the number of debit card users continues to grow, it’s important for the system to keep up with the increasing volume of transactions. Modern DCMS offers a highly scalable solution that can easily adapt to accommodate the growth in users and transactions. Advanced technology and architecture such as cloud computing, microservices, and distributed systems are efficient and reliable even as the number of users rises. This scalability ensures that customers can perform transactions without experiencing delays or system downtime, resulting in a seamless and satisfactory user experience.<h3 class="heading-node" id="hqqr6bwsj">Launching multiple products with quick TAT</h3>CMS offers banks and financial institutions faster turnaround time (TAT) for launching new debit card products with innovative features and benefits. Through advanced technology and flexible APIs, DCMS can integrate new products and services into their systems quickly, helping banks to cater to their customer’s evolving needs effectively. This not only keeps banks ahead of the competition but also ensures that customers have access to a wide number of debit card options resulting in faster TAT and greater loyalty and satisfaction.<h2 class="heading-node" id="lbq5vn0ay">Why M2P Debit Card platform?</h2>With market-winning features and benefits, M2P DCMS is designed to enhance customer experience and operations for banks. &nbsp;Our agile, cloud-agnostic, cutting-edge platform comes with a modular event-driven architecture for maximum impact.<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2023/05/banner-4-1.webp" alt="M2P Fintech" title="" width="100%" height="314"><h3 class="heading-node" id="sls36a9b0">Integration</h3>M2P offers an API-first technology stack that ensures seamless integration across all apps and web portals. Our aim is to offer a fully customizable solution that meets the unique needs of each client.<h3 class="heading-node" id="9x0ejowps">Time-to-Market</h3>We offer end-to-end solutions and in-house capabilities to help you launch your debit card program 5x faster than the competitors. Our streamlined process ensures minimal dependencies, which allows to get your product to market quickly and efficiently.<h3 class="heading-node" id="o9mo79wcc">Cloud Agnostic</h3>Our platform is designed with a cloud-native and cloud-agnostic approach, utilizing the latest micro-services architecture and low code development to ensure a modern and future-proof solution for our clients.<h3 class="heading-node" id="7v6i0oki1">Modular Event-driven Architecture</h3>Our composable architecture enables banks to run multiple programs concurrently. With this architecture, banks can efficiently manage and scale various programs while ensuring data privacy and security for all parties involved.Want to know more about deploying a Debit Card Management Solution?Reach out to us at <a class="link" href="mailto:business@m2pfintech.com">business@m2pfintech.com</a>.<a class="link fui-Link ___1idfs5o f3rmtva f1ewtqcl fyind8e f1k6fduh f1w7gpdv fk6fouc fjoy568 figsok6 f1hu3pq6 f11qmguv f19f4twv f1tyq0we f1g0x7ka fhxju0i f1qch9an f1cnd47f fqv5qza f1vmzxwi f1o700av f13mvf36 f1cmlufx f9n3di6 f1ids18y f1tx3yz7 f1deo86v f1eh06m1 f1iescvh ftqa4ok f2hkw1w fhgqx19 f1olyrje f1p93eir f1h8hb77 f1x7u7e9 f10aw75t fsle3fq f17ae5zn" href="https://m2pfintech.com/newsletter/" target="_blank" rel="noreferrer noopener">Subscribe</a>&nbsp;to our newsletter and get the latest fintech news, views, and insights, directly to your inbox.Follow us on&nbsp;<a class="link fui-Link ___1idfs5o f3rmtva f1ewtqcl fyind8e f1k6fduh f1w7gpdv fk6fouc fjoy568 figsok6 f1hu3pq6 f11qmguv f19f4twv f1tyq0we f1g0x7ka fhxju0i f1qch9an f1cnd47f fqv5qza f1vmzxwi f1o700av f13mvf36 f1cmlufx f9n3di6 f1ids18y f1tx3yz7 f1deo86v f1eh06m1 f1iescvh ftqa4ok f2hkw1w fhgqx19 f1olyrje f1p93eir f1h8hb77 f1x7u7e9 f10aw75t fsle3fq f17ae5zn" href="https://www.linkedin.com/company/m2pfintech/mycompany/" target="_blank" rel="noreferrer noopener">LinkedIn</a>&nbsp;and&nbsp;<a class="link fui-Link ___1idfs5o f3rmtva f1ewtqcl fyind8e f1k6fduh f1w7gpdv fk6fouc fjoy568 figsok6 f1hu3pq6 f11qmguv f19f4twv f1tyq0we f1g0x7ka fhxju0i f1qch9an f1cnd47f fqv5qza f1vmzxwi f1o700av f13mvf36 f1cmlufx f9n3di6 f1ids18y f1tx3yz7 f1deo86v f1eh06m1 f1iescvh ftqa4ok f2hkw1w fhgqx19 f1olyrje f1p93eir f1h8hb77 f1x7u7e9 f10aw75t fsle3fq f17ae5zn" href="https://twitter.com/m2pfintech" target="_blank" rel="noreferrer noopener">Twitter</a> for insightful fintech bytes curated for curious minds like you. &nbsp; &nbsp; &nbsp;

Simplify Debit Card Management with M2P's Revolutionary Platform

<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2023/05/MicrosoftTeams-image-7.webp" alt="M2P Fintech" title="" id="6k7sbdy4b" width="100%" height="253">Banks are undergoing a significant transformation, with radical digitization leading the way.&nbsp; Experiential omnichannel banking is taking over transactional counterparts. Competition is intensifying, and margins are shrinking. Banks are under tremendous pressure to deliver personalized digital-first experiences while optimizing cost efficiency, operational excellence, and compliance.<h2 class="heading-node" id="0tgjyolbl" style="text-align: left">Need to modernize CORE</h2>Though Centralized Online Real-time Environment (CORE) Banking drives branch-agnostic transactions, banks still grapple with inefficiencies that negatively impact customer experience, operations, and revenue. Legacy infrastructures, rising consumer appetite for quick and seamless digital experiences, macroeconomic challenges, regulatory headwinds, and technological advances further contribute to the banking woes. &nbsp;As legacy banking infrastructures lack seamlessness, flexibility, and scalability, banks struggle to deploy financial technology to support innovative product releases, quick go-to-market speed, frequent modifications/upgrades, and regulatory compliance changes.To stay relevant and ahead of the curve, banks must modernize their digital core banking infrastructure. Modern API-based core banking provides a customer-centric next-gen platform that enables faster innovation and higher efficiency by overcoming the limitations of their current core architectures. The market size is growing at a steady 18.3% and is expected to reach $40.67 billion by 2029. In this blog, we will explore how banks can achieve cost and operational efficiencies by making the big shift from legacy to digital core banking solutions.<h2 class="heading-node" id="09q78gig6" style="text-align: left">Digital Transformation in Banks</h2>Digital transformation is more than just implementing new technology in the banking system. It involves a fundamental shift in how banks think, operate, and deliver customer value. The goal of digital transformation is to leverage platformization and technology to unlock speed and innovation and optimize cost and operations while managing security and resilience.In India, the central government has embarked on a journey of digital transformation with the aim of enhancing the banking experience, social security, and financial inclusion. This transformation involves a shift from legacy systems to digital core banking, enabling more efficient and accessible financial services for the masses.<h2 class="heading-node" id="z074t0cvy" style="text-align: left">Big shift: Legacy to Digital Core Banking &nbsp;</h2>Core banking has <a class="link" href="https://m2pfintech.com/blog/future-of-core-banking-systems/">evolved in leaps and bounds</a>. What started out as a simple computerized banking system with monolithic codes and mainframes in the 70s has metamorphosed into low-code, API-first, cloud-agnostic platforms today. This platformization has been a key development for banks, as they transformed from being only a system to a holistic platform. In the contemporary landscape, core banking systems are intricately connected with cloud architectural models, representing a significant shift in the way banking operates. This transformation can be dissected into several crucial layers as shown in the below image.<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2023/05/Turing-CBS-Blog-V4-02-1.webp" alt="M2P Fintech" title="" width="100%" height="317">At the forefront, the interface/channel layer orchestrates seamless customer interactions, adapting to various digital touchpoints. Nestled within this framework is the concept of <a class="link" href="https://m2pfintech.com/blog/banking-as-a-service-redefining-financial-services/">Banking as a Service (BaaS)</a>, allowing for modular, customizable financial services that meet the diverse needs of today's customers. Deeper still, we encounter the basic banking layers, the core components that manage essential banking functionalities. Supporting this entire structure is the Infrastructure as a Service (IaaS) layer, providing the robust foundation for this dynamic ecosystem. The synergy of these layers with the cloud architectural model has catapulted core banking into a new era of flexibility, efficiency, and customer-centric innovation. Core banking platforms give banks the agility to scale and fully leverage the immense potential of the ongoing digital revolution to satisfy customers, employees, regulators, and partners.Legacy core banking systems are filled with silos, code rigidity, and complexities. Though traditional banks have automated financial processes and have newer distribution channels, the legacy banking system hinders their agility and flexibility to adapt to evolving factors like customer journeys and preferences, ecosystem changes, and vendor lock-ins. Additionally, they also result in higher maintenance costs, slower time to market, and do not support instant releases.Next-generation core banking platforms break down these barriers with modern, scalable, and open architectures using lightweight codes. They leverage APIs and advanced technologies to deliver simplicity, cost efficiency, speed, interoperability, flexibility, security, and future readiness. <a class="link" href="https://m2pfintech.com/blog/core-banking-essentials-types-components-advantages/">Modern core banking</a> systems play a crucial role in accelerating digital transformation for banks, enabling them to deliver a secure and superior banking experience to their customers. In the core banking stack, the customer's front-end layer acts as a link between the bank and its clients.<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2023/05/Turing-CBS-Blog-V5_1-1.webp" alt="M2P Fintech" title="" width="100%" height="317">It includes the Customer Data Ledger, for secure customer information management, and the Loan Module for seamless lending. The Third-Party Module integrates specialized offerings whereas the user-friendly Front-End App facilitates transactions and portfolio management. The Payment Module streamlines transactions with multiple options and the Third-Party Front-End App connects users to external financial services. This setup prioritizes customer needs, data security, and convenience. By leveraging advanced technology, these systems optimize costs and operational efficiencies, creating a seamless flow of operations that benefits both the bank and its customers.<h2 class="heading-node" id="71ojb1j4t" style="text-align: left">Optimizing cost and operational efficiencies</h2>To keep costs in check, banks need to prepare to take on uncertainties by enhancing operational and cost efficiencies. The first step is to optimize costs associated with maintenance and processing. Modernizing core banking systems reduces costs associated with core applications and hardware processing by consolidating siloed applications. The process cuts down maintenance costs which are usually high for legacy systems.Digital core banking systems drive operational efficiency by standardizing business processes, eliminating manual operations, and implementing straight-through processing capabilities. It also assists smooth outsourcing of non-core operations and allows the operational proficiencies to focus on critical core tasks. By modernizing the core, banks can standardize and streamline end-to-end business processes, improve regulatory compliance, and expedite go-to-market speed for new products. They can seamlessly replace the siloed product-centric legacy system with a next-gen, customer-centric, and hyper-personalized core banking system.<h2 class="heading-node" id="0zuyzy83r" style="text-align: left">Further benefits</h2>Core banking solutions offer a comprehensive platform for banks to gain accurate insights into their accounts. They provide a range of capabilities that include customer onboarding, customer relationship management, account opening, loan origination workflow, credit analysis, deposit accounts, instant reporting, and enterprise content management. The end-to-end platform spans across business lines and enables banks to streamline operations and efficiently manage their accounts from a single system. Some of the key benefits of next-gen digital core banking systems include the following.<ul class="list-node" id="2kmgmrqf0"><li>Simplicity in scaling up</li><li>Agile enough to accelerate new product launches</li><li>Incredible go-to-market speed</li><li>Onboarding and setting up in just a few clicks</li><li>Advanced security systems for data storage and fraud prevention management</li><li>Centralized access to account aggregators, mobile and third-party applications</li></ul><h2 class="heading-node" id="ofb7492tb" style="text-align: left">Turing Core Banking Solution (CBS)</h2>Striking the right balance between high-quality services, operational excellence, compliance, and cost optimization is Turing, our core banking solution that’s revolutionizing the banking industry.Turing is a cutting-edge core banking platform that deploys a state-of-the-art tech stack and micro-services architecture with licensed and open-source platform compatibility. Its low code development capability and API-first, cloud-agnostic approach positions Turing as a modern, future-ready core banking solution. Turing enables banks to deliver top-notch neo-banking services, customized Personal Finance Management (PFM), cutting-edge fixed deposit stack, personalized/custom-built debit cards, convenient flexi deposits, and futuristic gold deposits. Banks can launch new products with minimum effort by leveraging pre-built modules and components, allowing them to stay ahead of the competition.<h2 class="heading-node" id="eq93as9f1" style="text-align: left">Innovation and inclusion</h2>Although digital payment methods made transactions convenient, there were cases where senior citizens, underprivileged communities, and non-tech-savvy people encountered difficulties in banking. This was primarily due to the lack of smartphones, payment cards, and the inability to remember passcodes or PINs.To ensure digital financial services are accessible to all, Turing supports the Aadhaar-enabled Payment Systems (AePS).Aadhaar Enabled Payment System has the potential to revolutionize digital financial services in India by providing universal access to financial services. This system allows individuals to conduct financial transactions using their Aadhaar ID and biometric authentication, thus eliminating the need for a smartphone or payment card and to remember passcodes or PINs.<h2 class="heading-node" id="7odd7zpxu" style="text-align: left">What is Aadhaar-enabled Payment System?</h2>AePS is a unique payment system that allows anyone with an Aadhaar-enabled bank account to access online transactions via micro-ATM, kiosks, or mobile devices using Aadhaar authentication. With this system, users need not visit a bank branch to deposit cash, transfer money, and withdraw funds from their bank account without using a smartphone, payment card, or any other document.To know more about Aadhaar Enabled Payment System, <a class="link" href="https://m2pfintech.com/blog/revolutionizing-financial-inclusion-aadhaar-enabled-payment-system-aeps/">click here.</a><h2 class="heading-node" id="b6sj0yjdt" style="text-align: left">AePS implementation - Gayatri Bank</h2>We deployed Aadhaar Enabled Payment System (AePS) for Gayatri Bank, a cooperative urban bank in Telangana that offers economic support and hassle-free digitized financial services to underbanked and unbanked populations in India.<h2 class="heading-node" id="p87o5froi" style="text-align: left">Pain points&nbsp;</h2>At Gayatri Bank, most transactions involved senior citizens, and less tech-savvy customers from remote unbanked corners. For them possessing a smartphone or remembering PINs is a huge challenge. Thus, they were not able to access digital banking services.Gayatri bank needed assistance in fixing this problem and facilitating hassle-free financial access to people across all parts of society. Another major challenge was the cost involved in opening new branches and ATMs and issuing cheque books, cards and managing the KYC process. In underbanked rural areas, getting KYC documents in order and enabling efficient usage of branches and ATM machines is still a struggle for banks as well as customers.<h2 class="heading-node" id="shoqo5hhz" style="text-align: left">How we resolved challenges and future-proofed transactions?&nbsp;</h2>We understood that Gayatri Bank required a fintech partner to enable AEPS implementation and manage UIDAI authentication across their branches and business correspondent network in India. This was a strategic, futuristic move for Gayatri Bank to drive inclusion, electronify retail payments, achieve interoperability, reach more customers, and cut costs.We powered the AePS switch and helped customers use their Aadhaar number and fingerprint as an identity to perform the following transactions via business correspondents.<ul class="list-node" id="v912ticfi"><li>Cash deposits</li><li>Cash withdrawals</li><li>Intrabank or interbank fund transfers</li><li>Balance enquiries</li><li>Mini statement printing</li></ul>We securely routed Aadhaar-initiated interbank transactions via central switching and clearing agency and enabled disbursements of Government entitlements under the National Rural Employment Guarantee Act (NREGA), social security pensions, and handicapped old age pension schemes.Gayatri Bank was able to cut costs by engaging with business correspondent agents to facilitate Aadhaar-enabled transactions instead of investing in new branches, ATMs, cheque book, and cards. These agents increase the penetration of financial services, as anyone is able to visit them to get transactions done with just an Aadhaar number and biometric identification.In a nutshell, we built a solid foundation for Gayatri Bank to run a full-fledged Aadhaar Enabled Banking Service across India.<h2 class="heading-node" id="p7zw9m1jc" style="text-align: left">Results achieved</h2>On the very first day of AePS going live, over 500 business correspondents were onboarded from remote locations. Gayatri Bank experienced a significant boost in revenue and transaction volumes, as they were able to service more customers with greater convenience without incurring the costs of opening bank branches or ATM machines.Gayatri Bank was able to deliver the following benefits to customers.<ul class="list-node" id="jdlfreaa5"><li>Facilitated secure transactions using UIDAI biometric authentication</li><li>Delivered 6X improvement in transaction efficiency</li><li>Cut down execution time by 1/5th of the usual timing</li><li>Financially empowered senior citizens and the differently abled</li><li>Eliminated the need to carry smartphones or cards</li><li>Abolished the need to remember passcodes, PINs, or CVV numbers</li><li>Enabled secure transactions at remote locations without bank branches or ATMs</li></ul>Want to know more about future-proofing your banking operations?Fill in this form, <a class="link" href="https://forms.office.com/pages/responsepage.aspx?id=ifAFNAS-IkODQGVQ8t7uCirHU8VuF0lOoEkDdSuTc_NUM1pGMEVOR1pPNFMwNUZRNk8yR1RBSDQ1Qy4u">click here</a>.Or you can write to us at <a class="link" href="mailto:business@m2pfintech.com">business@m2pfintech.com</a>.

Unlock the Future of Banking with Next-Gen Core Banking Solutions

<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2023/04/Penetration-testing-banner1.webp" alt="M2P Fintech" title="" width="100%" height="253">The $158.9 billion fintech industry thrives on mobile apps. Android dominates the mobile app market with a whopping 71.65% market share. Though in demand globally, its open-source&nbsp;nature makes data security a vulnerability in Android apps. Even <a class="link" href="https://m2pfintech.com/blog/super-apps-in-consumer-banking-what-role-does-open-banking-play/">super apps</a> are no exception.&nbsp;Developing and releasing a fully functional and secure Android application is a critical challenge for app developers. Managing app functionality is the easy part; but the real challenge is making the Android application secure and resilient to cyberattacks. &nbsp;What’s the best way to do this?&nbsp;Our Software Development Engineer, <a class="link" href="https://www.linkedin.com/in/sundaramanikandan-l-80957014b/">Sundaramanikandan</a> has hands-on experience in developing highly secure Android apps and will take us through every step in mitigating cyberattacks while developing an app. &nbsp;First things first, every developer must prioritize security to protect users and their data. The security-first approach will benefit the 6.92 billion smartphone users in the world, who constitute over 86.29% of the global population.&nbsp;&nbsp;Remember that the advances in digitization and technology also apply to hackers and cybercriminals. Technology that makes lives easier has increased our exposure to risks. Fraudsters ride on the vulnerabilities by using more sophisticated techniques to exploit loopholes and evade detection while breaking into systems to access sensitive data.&nbsp;<h2 class="heading-node" id="sdulm87wi" style="text-align: justify">How to secure Android devices from attackers?&nbsp;</h2>Developers and organizations need to deploy secure software development lifecycle practices to protect against data breaches or theft. Public Wi-Fi networks and other wireless communication systems should be blocked to prevent man-in-the-middle attacks and other unsecured communication exploits. Attackers can pretend to be real web services, steal data, or listen in on calls and texts by taking over a user's mobile signal.&nbsp;<h2 class="heading-node" id="d5lk42h71" style="text-align: justify">Smartphone rooting to get superuser permissions&nbsp;&nbsp;&nbsp;</h2>Firstly, the process called rooting is done, i.e., removing the limitations on a mobile or tablet running the Android operating system. It lets you get root access to the code of the Android operating system (the equivalent term for Apple devices is jailbreaking). It gives permission to change the device's software code or install software that the manufacturer wouldn't normally let us do.&nbsp;<h2 class="heading-node" id="oj87o5xpb" style="text-align: justify">Cons of running apps on a rooted device&nbsp;</h2>Simply put, it opens higher risks like spoofing, cheating, and abuse of core functionalities. A root-level app can easily set up backdoors that let unauthorized users get into the device and then into the secure corporate network. When you "root" your Android device, you give apps unauthorized access to your operating system and sensitive data. It further leads to the theft of user data, finances, intellectual property, and piracy. Some malware apps specifically go after rooted devices to infect system-level files. So, you must be careful what you install.&nbsp;Targeted cyberattacks on corporates are on the rise as more and more business transactions are done on mobile devices. Rooted Android devices make it easier to sneak into the corporate network. For a financial app, if an attacker can intercept a network call and change the address, the victim could lose a lot of money, and the company that developed the app will lose its reputation.&nbsp;As having a user-friendly mobile app is a key differentiator, banks and financial institutions are in a dilemma to choose between allowing their app, which contains excellent payment functionalities and extremely sensitive data, to run on rooted/jailbroken devices or risk losing their target audience. Or they can opt for the middle ground by mitigating the risks of the app running on rooted devices. This compromise is critical. Or else, risks such as malware, man-in-the-middle attacks, and system API hijacking could lead to user data exfiltration. &nbsp;Therefore, Android app installation must be blocked on rooted devices to prevent attacks specifically targeting users who have rooted their smartphones.&nbsp;<h2 class="heading-node" id="78wzaxox3" style="text-align: justify">How can app developers block Android installation on a rooted device?&nbsp;</h2>Every Android app developer should understand the following pointers below to steer clear of the hazards of rooted devices.&nbsp; What’s the common way an app can be tampered with?&nbsp;<ol class="list-node" id="lwmuzqjzn"><li>ByPassing root detection logic implemented&nbsp;&nbsp;</li><li>ByPassing the SSL Pinning&nbsp;</li></ol>What are the commonly used hacking tools?&nbsp;<ol class="list-node" id="tym0kml1c"><li>Magisk&nbsp;</li><li>LSXposed Framework&nbsp;</li></ol>Dos and Don’ts - for infosec clearance to block Android app installation&nbsp;Don’ts&nbsp;❌ Install the app on a rooted device&nbsp;❌ Tapjack&nbsp;❌ Copy/paste sensitive data&nbsp;❌ Take screenshots&nbsp;&nbsp;Dos&nbsp;Now, the following method will help create the most comprehensive approach:&nbsp;✅ Check if the app is running in emulator&nbsp;This is the first thing we need to look at when the app is launched. If a hacker extracts the APK and tries to run it in an emulator/simulator, we should stop running the app if it is a production version. This functionality can be built as an extension function and utilized in the application's base activity.&nbsp;<pre class="block-node"><code>val isRunningOnEmulator: Boolean by lazy {
&nbsp;&nbsp;&nbsp; // Android SDK emulator
&nbsp;&nbsp;&nbsp; return@lazy ((Build.FINGERPRINT.startsWith(“google/sdk_gphone_”)
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &amp;&amp; Build.FINGERPRINT.endsWith(“:user/release-keys”)
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &amp;&amp; Build.MANUFACTURER == “Google” &amp;&amp; 
Build.PRODUCT.startsWith(“sdk_gphone_”) &amp;&amp; Build.BRAND == “google”
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &amp;&amp; Build.MODEL.startsWith(“sdk_gphone_”))
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; || Build.HARDWARE.contains(“goldfish”)
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; || Build.HARDWARE.contains(“ranchu”)
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; || Build.PRODUCT.contains(“sdk_gphone64_arm64”)
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; || Build.PRODUCT.contains(“vbox86p”)
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; || Build.PRODUCT.contains(“emulator”)
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; || Build.PRODUCT.contains(“simulator”)
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; || Build.FINGERPRINT.startsWith(“generic”)
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; || Build.FINGERPRINT.startsWith(“unknown”)
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; || Build.PRODUCT.contains(“sdk_google”)
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; || Build.MODEL.contains(“google_sdk”)
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; || Build.PRODUCT.contains(“sdk_x86”)
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; || Build.MODEL.contains(“Emulator”)
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; || Build.MODEL.contains(“Android SDK built for x86”)
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; || “QC_Reference_Phone” == Build.BOARD &amp;&amp; !“Xiaomi”.equals(
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Build.MANUFACTURER,
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ignoreCase = true
&nbsp;&nbsp;&nbsp; )
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; || Build.MANUFACTURER.contains(“Genymotion”)
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; || Build.HOST.startsWith(“Build”) //MSI App Player
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; || Build.BRAND.startsWith(“generic”) &amp;&amp; Build.DEVICE.startsWith(“generic”)
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; || Build.PRODUCT == “google_sdk”)
}&nbsp;

✅ Check developer options&nbsp;

Hooking an app is as simple as enabling the developer settings on the device and connecting to the Android SDK tool. Hence, when the app is launched, we must determine whether the developer option is enabled or not by writing an extension function.&nbsp;

fun isDevMode(context: Context): Boolean {&nbsp;
&nbsp;&nbsp;&nbsp; return when {&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Build.VERSION.SDK_INT &gt; Build.VERSION_CODES.JELLY_BEAN -&gt; {&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Settings.Secure.getInt(&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; context.contentResolver,&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Settings.Global.DEVELOPMENT_SETTINGS_ENABLED, 0&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ) != 0&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; }&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Build.VERSION.SDK_INT == Build.VERSION_CODES.JELLY_BEAN -&gt; {&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; @Suppress(“DEPRECATION”)&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Settings.Secure.getInt(&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; context.contentResolver,&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Settings.Secure.DEVELOPMENT_SETTINGS_ENABLED, 0&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ) != 0&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; }&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; else -&gt; false&nbsp;
&nbsp;&nbsp;&nbsp; }&nbsp;
}&nbsp;

✅ Check if the device is rooted&nbsp;&nbsp;

The Util class is commonly used to determine whether a device is rooted, or the super user “SU” is enabled.&nbsp;

private val binaryPaths = arrayOf(
&nbsp;&nbsp;&nbsp; “/data/local/”,
&nbsp;&nbsp;&nbsp; “/data/local/bin/”,
&nbsp;&nbsp;&nbsp; “/data/local/tmp/”,
&nbsp;&nbsp;&nbsp; “/data/local/xbin/”,
&nbsp;&nbsp;&nbsp; “/sbin/”,
&nbsp;&nbsp;&nbsp; “/su/bin/”,
&nbsp;&nbsp;&nbsp; “/system/bin/”,
&nbsp;&nbsp;&nbsp; “/system/bin/.ext/”,
&nbsp;&nbsp;&nbsp; “/system/bin/failsafe/”,
&nbsp;&nbsp;&nbsp; “/system/sd/xbin/”,
&nbsp;&nbsp;&nbsp; “/system/usr/we-need-root/”,
&nbsp;&nbsp;&nbsp; “/system/xbin/”,
&nbsp;&nbsp;&nbsp; “/system/app/Superuser.apk”,
&nbsp;&nbsp;&nbsp; “/cache”,
&nbsp;&nbsp;&nbsp; “/data”,
&nbsp;&nbsp;&nbsp; “/dev”,

&nbsp;&nbsp;&nbsp; “/sbin/su”,
&nbsp;&nbsp;&nbsp; “/system/bin/su”,
&nbsp;&nbsp;&nbsp; “/system/xbin/su”,
&nbsp;&nbsp;&nbsp; “/data/local/xbin/su”,
&nbsp;&nbsp;&nbsp; “/data/local/bin/su”,
&nbsp;&nbsp;&nbsp; “/system/sd/xbin/su”,
&nbsp;&nbsp;&nbsp; “/system/bin/failsafe/su”,
&nbsp;&nbsp;&nbsp; “/data/local/su”,
&nbsp;&nbsp;&nbsp; “/su/bin/su”,
&nbsp;&nbsp;&nbsp; “./frida-server”,
&nbsp;&nbsp;&nbsp; “/data/local/tmp/frida-server”

)&nbsp;

&nbsp;When this class is called upon app launch, it checks to see whether any of the aforementioned binaries are present on the device and returns “rooted” if any are.&nbsp;

✅ Integrate root detection library like RootBear&nbsp;

RootBear is a popular open-source library that can be utilized in our app to detect root causes.&nbsp;

implementation ‘com.scottyab:rootbeer-lib:0.1.0′&nbsp;

After adding this library in the app build Gradle file, it can be implemented in a base activity like:&nbsp;

if (!BuildConfig.DEBUG &amp;&amp; rootBeer.isRooted) {
&nbsp;&nbsp;&nbsp; showRootedDeviceDialog(getString(R.string.device_rooted))
&nbsp;&nbsp;&nbsp; isRootedDeviceBool = true
} else if (!BuildConfig.DEBUG &amp;&amp; rootBeer.isRootedWithBusyBoxCheck) {
&nbsp;&nbsp;&nbsp; showRootedDeviceDialog(getString(R.string.device_rooted))
&nbsp;&nbsp;&nbsp; isRootedDeviceBool = true
}&nbsp;&nbsp; 
</code></pre>Now, all the steps discussed around a great way to prevent an Android app from being installed or functioning on a rooted device. &nbsp;But this is not all. There is more.&nbsp;There is another tool called ‘Frida’ that helps bypass all the above logics implemented in an app.&nbsp;Want to know how to block Frida?&nbsp;Stay tuned to our next blog!&nbsp;This article is authored by&nbsp;<a class="link" href="https://www.linkedin.com/in/sundaramanikandan-l-80957014b/">Sundaramanikandan.</a><a class="link fui-Link ___1qmgydl f3rmtva f1ewtqcl fyind8e f1k6fduh f1w7gpdv fk6fouc fjoy568 figsok6 f1hu3pq6 f11qmguv f19f4twv f1tyq0we f1g0x7ka fhxju0i f1qch9an f1cnd47f fqv5qza f1vmzxwi f1o700av f13mvf36 f1cmlufx f9n3di6 f1ids18y f1tx3yz7 f1deo86v f1eh06m1 f1iescvh ftqa4ok f2hkw1w fhgqx19 f1olyrje f1p93eir f1h8hb77 f1x7u7e9 f10aw75t fsle3fq" href="https://m2pfintech.com/newsletter/" target="_blank" rel="noreferrer noopener">Subscribe</a>&nbsp;to our newsletter and get the latest fintech news, views, and insights, directly to your inbox.Follow us on&nbsp;<a class="link fui-Link ___1qmgydl f3rmtva f1ewtqcl fyind8e f1k6fduh f1w7gpdv fk6fouc fjoy568 figsok6 f1hu3pq6 f11qmguv f19f4twv f1tyq0we f1g0x7ka fhxju0i f1qch9an f1cnd47f fqv5qza f1vmzxwi f1o700av f13mvf36 f1cmlufx f9n3di6 f1ids18y f1tx3yz7 f1deo86v f1eh06m1 f1iescvh ftqa4ok f2hkw1w fhgqx19 f1olyrje f1p93eir f1h8hb77 f1x7u7e9 f10aw75t fsle3fq" href="https://www.linkedin.com/company/m2pfintech/mycompany/" target="_blank" rel="noreferrer noopener">LinkedIn</a>&nbsp;and&nbsp;<a class="link fui-Link ___1qmgydl f3rmtva f1ewtqcl fyind8e f1k6fduh f1w7gpdv fk6fouc fjoy568 figsok6 f1hu3pq6 f11qmguv f19f4twv f1tyq0we f1g0x7ka fhxju0i f1qch9an f1cnd47f fqv5qza f1vmzxwi f1o700av f13mvf36 f1cmlufx f9n3di6 f1ids18y f1tx3yz7 f1deo86v f1eh06m1 f1iescvh ftqa4ok f2hkw1w fhgqx19 f1olyrje f1p93eir f1h8hb77 f1x7u7e9 f10aw75t fsle3fq" href="https://twitter.com/m2pfintech" target="_blank" rel="noreferrer noopener">Twitter</a>&nbsp;for insightful fintech tales curated for curious minds like you.

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