Building a Scheduling Framework from Scratch using Node.js

<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2023/03/Behavioral-Biometrics01.webp" alt="M2P Fintech" title="" width="100%" height="253">Over 9,103 bank fraud cases worth 604 billion rupees were reported across India in 2022.  Now, this is not a good sign for the banking industry.&nbsp;Let alone the digital banking sector.With digital transformation on the rise, the cyber threat landscape has evolved too. Fraudsters are adapting sophisticated tactics and technologies to steal identity, data, and money for their corrupt motives. The security attacks have deep risk implications that result in financial loss, regulatory scrutiny, and depletion of customer trust and goodwill.&nbsp;These repercussions have created a dire demand for stringent security in digital banking. A one that does not hamper customer experience. Banks need technology innovation that can go beyond PINs and passwords to deter security attacks without compromising customer experience, trust, or regulatory compliance.&nbsp;Behavioral biometrics serve as a great solution to deter the security risks at stake.&nbsp;Advanced technology in behavioral biometrics can mitigate the security concerns of digital banks without impeding speed, personalization, convenience, or experience. It is a great way to build stakeholder loyalty and trust.&nbsp;<h2 class="heading-node" id="peql4e1rh" style="text-align: left">What is behavioral biometrics? &nbsp;</h2>Behavioral biometrics is a cutting-edge technology that continuously analyzes user identity along with their phygital (physical + digital) and cognitive behavior. It averts security risks such as credential theft, compromised passwords/accounts, user substitution, phishing attacks, license mismanagement, and identity breaches of any kind. The biometric authentication runs without making a noise in the background and does not impede the customer experience on any level.&nbsp;&nbsp;By monitoring and analyzing user movements like swiping, keying, scrolling, or even moving the devices, behavioral biometrics helps differentiate legitimate from fraudulent activities and can easily identify cybercriminals and fraudsters.&nbsp;It creates in-depth profiles of user behavior and uses them as a benchmark for identifying and preventing suspicious transactions. If the system notices any unusual conduct, alerts are triggered in the background to carry out extra research to preserve the integrity of the account and the authorized user. &nbsp;Banks today are exploring biometrics as a possible replacement for PIN and password systems for a more user-friendly banking experience. Behavioral biometrics can usher in a new era in digital authentication when implemented with machine learning and risk assessment techniques. When deployed in conjunction with biometric cards, it can combat even the most sophisticated digital banking fraud attacks. <h2 class="heading-node" id="cotu4k4rk" style="text-align: left">Types of behavioral biometrics &nbsp;</h2>The way a user walks, talks, types on a keyboard, or moves the mouse is factored in behavioral biometrics to validate identity and discover breaches. Kinesthetics, voice inputs and patterns, and devise-based gestures are primary types of behavioral biometrics.&nbsp;<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2023/03/Behavioral-Biometrics03.webp" alt="M2P Fintech" title="" width="100%" height="253">Kinesthetics (Posture &amp; Gait) &nbsp;The way a person's body moves and how their weight is distributed are kinesthetic behaviors of the user. Behavioral biometrics records and analyzes user gait, the way and the manner in which they handle devices, and body movements such as stride length, upper body posture, and movement pace to identify fraudulent activity. &nbsp;Voice Inputs &amp; Patterns &nbsp;The human voice is unique. By capturing narrow-band characteristics such as pitch and format, the perpetrator's identity and motive are very easily verified. The voice inputs and patterns of the user are analyzed, and the distinct, recurring sound variations that occur when they speak are captured and evaluated in behavioral biometrics.&nbsp;Device-Based Gestures (Keystroke Dynamics &amp; Cursor Movements) &nbsp;People interact with devices in specific ways. Typing patterns, keystroke speed and duration, key sequences, and mouse movement patterns have a significant correlation with behavioral intent. Cursor movement analysis in speed, direction changes, clicks, and interactions serves as a basis for user behavior profiles.  &nbsp;The gestures discussed above are analyzed in detail continuously to create behavioral profiles as input to risk engines/fraud monitoring systems. Banks and financial institutions can adopt this advanced technology to provide an extra layer of security for customer identity verification and fraud control.&nbsp;<h2 class="heading-node" id="z3wze9vma" style="text-align: left">How does behavioral biometrics prevent fraud? </h2>The process of preventing fraud and scams with behavioral data happens as follows.<ul class="list-node" id="ayi9ecx61"><li>Collection: The Access Control Server (ACS) monitors and records user actions and behaviors, such as typing rhythm, mouse movements, device usage patterns, and other kinesthetics.  &nbsp;</li><li>Analysis: A unique user profile is created after a thorough analysis of the collected data based on their behavioral patterns.  &nbsp;</li></ul><img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2023/03/Behavioral-Biometrics04.webp" alt="M2P Fintech" title="" width="100%" height="253"><ul class="list-node" id="1frsnzw24"><li>Authentication: When a user attempts to access a protected resource, the system compares the current behavior of the user to their previously established profile. If the behavior matches, the user is authenticated and granted access. &nbsp;</li><li>Monitoring: Continued monitoring and updating of the user behavioral profile is done to ensure accuracy.  &nbsp;</li></ul>This way, behavioral biometrics significantly improves security and user experience in digital banking. &nbsp;<h2 class="heading-node" id="o9mj9ojo6" style="text-align: left">Five reasons why banks need behavioral biometrics &nbsp;</h2><ol class="list-node" id="eq24hgkm0"><li>Stronger security: Behavioral biometrics uses unique behavioral patterns and actions to verify the identity of an individual, providing a stronger form of authentication when compared to traditional methods such as passwords and security tokens. </li><li>User convenience: Unlike traditional biometrics, such as fingerprints and facial recognition, behavioral biometrics do not require any physical input from the user. Instead, it uses actions and behaviors that are performed naturally, such as typing rhythm and mouse movements. This makes it a convenient and user-friendly method of authentication.  &nbsp;</li><li>Continuous authentication: Behavioral biometrics continuously monitor the actions and behaviors of the user, ensuring that the user's identity is continuously verified even after initial authentication. This helps prevent fraud by detecting any changes in behavior that may indicate that a fraudster has taken over the account. &nbsp;</li><li>More difficult to mimic: Unlike other forms of biometrics, it is difficult for a fraudster to mimic the unique behavioral patterns of an individual. This makes it a more secure form of authentication, reducing the risk of fraud. &nbsp;</li><li>Improved fraud detection: By continuously monitoring user behavior, behavioral biometrics can help financial institutions identify potential fraud and investigate suspicious activity, giving them another layer of security to their customer’s accounts. &nbsp;</li></ol>The technology behind behavioral biometrics is evolving, and there is no doubt that a lot of work in this space is already underway. The early indications are quite clear that it will be a key component of banks’ arsenal against the continuously evolving world of fraud.&nbsp;It’s high time banks take behavioral biometrics seriously to authenticate and protect end-users from hacking and fraud.&nbsp; Want to know more about Behavioral Biometrics?&nbsp;&nbsp;&nbsp;Write to us at <a class="link" href="mailto:business@m2pfintech.com">business@m2pfintech.com</a>.&nbsp;<a class="link" href="https://m2pfintech.com/newsletter/" target="_blank" rel="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" href="https://www.linkedin.com/company/m2pfintech/mycompany/" target="_blank" rel="noopener">LinkedIn</a>&nbsp;and&nbsp;<a class="link" href="https://twitter.com/m2pfintech" target="_blank" rel="noopener">Twitter</a>&nbsp;for insightful fintech tales curated for curious minds like you.

5 Reasons why Banks need Behavioral Biometrics

<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2023/03/MicrosoftTeams-image-11-1.webp" alt="M2P Fintech" title="" id="kkcc1k5hr" width="100%" height="317">Video KYC is a game changer in digital onboarding. Since 2020, video-based identity verification has been effective in preventing fraud, reducing onboarding costs, and speeding up the authentication process.&nbsp;&nbsp;A robust face liveness detection is a key part of the <a class="link" href="https://m2pfintech.com/blog/transform-digital-onboarding-with-vkyc/" target="_blank" rel="noopener">VKYC</a> process. It is basically a selfie-based check that scans the user’s facial expressions and blinking gestures to differentiate a real user from a fake impersonator or a bot.&nbsp;<h2 class="heading-node" id="m7mrkrgp6" style="text-align: justify">How can you Create a Robust Face Liveness Detection Application?&nbsp;</h2>There are several tools and technologies available in the market, but the simplest cost-effective method involves using Flutter and Google ML Kit. Using these, you can easily create a face liveness detection application.&nbsp;Wonder how? &nbsp;We have our Flutter experts <a class="link" href="https://www.linkedin.com/in/chinnadurai-viswanathan-b2b6b7a5/" target="_blank" rel="noopener">Chinnadurai Viswanathan</a> and&nbsp;<a class="link" href="https://www.linkedin.com/in/nandhakumar-k-14828813a/" target="_blank" rel="noopener">Nandhakumar Krishnan </a>explain how a face liveness detection application can be created using Google ML Kit. &nbsp;So, here you go. &nbsp;To start with, facial&nbsp;images will be detected by doing the following gestures.<ol class="list-node" id="kg1t9mjv2"><li>Left - Turn&nbsp;</li><li>Right - Turn&nbsp;</li><li>Look - UP&nbsp;</li><li>Look - Down&nbsp;</li><li>Wink 😉&nbsp;</li><li>Smile 😃&nbsp;</li></ol>We will use Google’s library named <a class="link" href="https://firebase.google.com/docs/ml-kit" target="_blank" rel="noopener">Firebase ML Kit</a> to detect the faces within an image. <a class="link" href="https://pub.dev/packages/camera" target="_blank" rel="noopener">CameraPreview</a> is used to capture the user’s image, and then it will be sent to the <a class="link" href="https://firebase.google.com/docs/ml-kit" target="_blank" rel="noopener">Firebase ML Kit</a> library, which provides the face values.&nbsp; &nbsp;Now, let’s explore the Firebase ML Kit further.&nbsp;<h2 class="heading-node" id="ecwzez33o" style="text-align: justify">Firebase ML (<a class="link Hyperlink SCXW22502046 BCX0" href="https://firebase.google.com/docs/ml-kit" target="_blank" rel="noreferrer noopener">Firebase ML Kit</a>):&nbsp;</h2>Firebase ML Kit’s Face Detection API is a powerful tool to&nbsp;detect faces within images, which allows you to identify important facial features and obtain the contours of detected faces.&nbsp;&nbsp;This technology performs exceptionally well in the pre-processing phase of the image and detects different zones of the face accurately. The API can also identify many facial expressions and emotions, making it a valuable tool for developers looking to create facial recognition with greater accuracy and precision.&nbsp;&nbsp;After the images are captured from <a class="link" href="https://pub.dev/packages/camera" target="_blank" rel="noopener">CameraPreview</a>, it is tested using the following dependencies.&nbsp;<ol class="list-node" id="7f90uhnxd"><li><a class="link" href="https://pub.dev/packages/google_ml_kit" target="_blank" rel="noopener">Google MLKit (google_mlkit)</a>&nbsp;</li><li><a class="link" href="https://pub.dev/packages/camera" target="_blank" rel="noopener">Camera (camera)</a>&nbsp;</li></ol><h2 class="heading-node" id="pv2dvk5be" style="text-align: justify">Flutter Dependencies&nbsp;</h2><img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2023/03/1.webp" alt="M2P Fintech" title="" width="100%" height="120"><h2 class="heading-node" id="d7sjvjvno" style="text-align: justify">Android Dependencies&nbsp;</h2><img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2023/03/2.webp" alt="M2P Fintech" title="" width="100%" height="91"><img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2023/03/3.webp" alt="M2P Fintech" title="" width="100%" height="117"><h2 class="heading-node" id="i0796e05v" style="text-align: justify">How to Get Face Values using Flutter &amp; Android dependencies?</h2>The following steps will help you get face values using Flutter and Android dependencies.&nbsp;Step 1The first step is to set the preview of the camera in Flutter.&nbsp;&nbsp;<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2023/03/4.webp" alt="M2P Fintech" title="" width="100%" height="120">In Flutter, the camera controller needs 3 parameters.&nbsp;<ol class="list-node" id="aj57jbroc"><li>List of cameras (List&lt;CameraDescription&gt; cameras = [];)&nbsp;</li><li>Resolution of Photo&nbsp;</li><li>Audio needs — Based on your requirement&nbsp;</li></ol><img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2023/03/5.webp" alt="M2P Fintech" title="" width="100%" height="189">Using StreamBuilder, we can get the photo from the camera every second to process the images.&nbsp;<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2023/03/6.webp" alt="M2P Fintech" title="" width="100%" height="104">The cameraController?.startImageStream() method returns a ‘CameraImage’ which can be used for ML image processing. If you use Firebase ML for Flutter, you can directly pass the CameraImage to it for processing. Once the processing is complete, you can return the result and display it in a User Interface (UI).&nbsp;&nbsp;Note: The ‘cameraController?.startImageStream()’ method provides ‘CameraImage’ instance, but Google ML Kit requires an ‘InputImage’ object to perform face detection. Therefore, we need to convert the ‘CameraImage’ to an ‘InputImage’ object to build the face detection logic. In case you’re not familiar with ‘InputImage’, it is an ML Kit class that offers a common representation of images used as input data for machine learning models. It can be created from various sources such as bitmap, media image, or Byte Buffer.&nbsp;&nbsp;<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2023/03/7.webp" alt="M2P Fintech" title="" width="100%" height="74">Step 2Once you have implemented the above code, you can design your camera view in your application.&nbsp;&nbsp;Note: The below onImage method code is our special requirement, so we’ve implemented a few things.&nbsp;<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2023/03/8.webp" alt="M2P Fintech" title="" width="100%" height="454">Now we have obtained the InputImage from the camera stream, then the next step is to process the image and detect faces using the FaceDetector from the google_mlkit_commons library. This will display a list of all the faces present in the image, that can be used for further processing.&nbsp;&nbsp;Step 3Using this faceDetector instance, we will get the list of faces from InputImages objects.<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2023/03/9.webp" alt="M2P Fintech" title="" width="100%" height="368">The output of the image will be as below.&nbsp;<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2023/03/MicrosoftTeams-image-9.webp" alt="M2P Fintech" title="" width="100%" height="254">If you are interested in reusing the above codes in your existing native applications, you can refer to this article on <a class="link" href="https://m2pfintech.com/blog/the-implications-of-flutter-in-fintech/" target="_blank" rel="noopener">The Implications of Flutter in Fintech</a>.&nbsp; With the power of ML and Flutter, the possibilities are endless for creating intelligent apps that offer a better user experience.&nbsp;&nbsp;If you want to know more about how we implement face liveness detection in Flutter and Google ML Kit, write to us at <a class="link" href="mailto:business@m2pfintech.com" target="_blank" rel="noopener">business@m2pfintech.com</a>!&nbsp;This article is authored by <a class="link" href="https://www.linkedin.com/in/chinnadurai-viswanathan-b2b6b7a5/" target="_blank" rel="noopener">Chinnadurai Viswanathan</a>.<a class="link" href="https://m2pfintech.com/newsletter/" target="_blank" rel="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" href="https://www.linkedin.com/company/m2pfintech/mycompany/" target="_blank" rel="noopener">LinkedIn</a>&nbsp;and&nbsp;<a class="link" href="https://twitter.com/m2pfintech" target="_blank" rel="noopener">Twitter</a>&nbsp;for insightful fintech tales curated for curious minds like you.

Unmask Face Liveness Detection by Integrating Google ML Kit into your Flutter App

<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2023/02/Cracking-Tokenization-for-Tabby-Blog-Banner-V3_Fintech-trends-banner-1.webp" alt="M2P Fintech" title="" width="100%" height="253">Buy Now, Pay Later (BNPL) has taken the e-commerce world by storm in the past few years. Driving a 30% increase in conversions and an 85% rise in average order value, BNPL has earned merchant confidence and customer trust.With 97% smartphone penetration, the UAE is one of the avid adopters of BNPL and contactless payments in the Middle East. Tabby Pay is a leading BNPL platform in the UAE that caters to over two million buyers and 4000 top brands and small businesses. Tabby issues virtual cards that customers can activate and use on the Tabby app for free. Shoppers can add the card to their favorite digital wallet and tap at the POS terminal to divide their payments into installments.&nbsp;But one key issue plagued Tabby’s operation.It was card data security.Let us quickly give you more context on the challenge.&nbsp;&nbsp;As a tech-savvy population, the UAE residents are not fans of using physical cards while shopping. Contactless cards and mobile wallets like Apple Pay are preferred options for a frictionless payment experience.In fact, over 80% of consumers in the UAE prefer using iPhones and other Apple services and gadgets over Google and Android. So, when they receive a new card from Tabby, they add it to the Apple wallet on their iPhones to tap and pay using NFC.&nbsp;Now, security is a critical concern in this digital era. Even though contactless payments have one of the lowest fraud instances, there is still a fair possibility of card data and sensitive information getting stolen and misused. Data breaches could cost companies millions and billions in losses.&nbsp;&nbsp;To avoid these vulnerabilities and to keep cardholder data safe, Tabby&nbsp;enabled tokenization for Google, Android, and Apple wallets. Now Tabby’s payments run on M2P prepaid stack. And we also handled the responsibility of tokenization for the BNPL player.&nbsp;<h2 class="heading-node" id="4yxyxvp76" style="text-align: left">What is Tokenization?</h2>Tokenization is a security process that helps protect&nbsp;card data by masking the card account number with a single use randomized alphanumeric character of the same length called a token. Associated with a card, platform, or device, the payment tokens are issued in real-time and used during payment, after which they are discarded. To know more about payment tokenization, <a class="link" href="https://m2pfintech.com/blog/how-does-payment-tokenization-work/">click here.</a>&nbsp;In mobile wallets, a single card can have multiple unique tokens associated with specific shopping channels and issuing banks. Token Service Providers (TSPs) play a significant role in managing the lifecycle of a token via statuses such as requested, active, inactive, suspended, and ended.&nbsp;<h2 class="heading-node" id="n5xh14nzp" style="text-align: left">How M2P Cracked Tokenization for Apple Wallet?</h2>M2P acted as the Issuer Token Service Provider (ITSP) and processed the authentication layer for Tabby, which included demographic checks, card authentication, and issuer configuration. Our ITSP solution has been designed to do all the heavy lifting of the tokenization process and makes life simpler for the issuer when it comes to program management, technology, security, compliance, reporting, and token Life cycle management, among many others. Even the rules were made configurable as per issuer convenience.Handling tokenization protocols for Google and Android wallets is simpler when compared to Apple wallets. The Apple wallet tokenization process is complex and challenging as there are multiple stringent protocols that are difficult to understand and comply with.&nbsp;To activate tokenization for prepaid cards, we had to enable seamless integration between the card payment network - Visa, BNPL player - Tabby, and the digital wallet provider - Apple/Google/Samsung. As backend integrations are our stronghold, we managed the process without hassles. Our existing Visa certification gave us further edge in managing tokenization with ease.&nbsp;Here is a glimpse into how tokenization would happen every time a customer adds the Tabby Card to the Pay wallet.&nbsp;<ul class="list-node" id="05pae3esr"><li>When a customer adds a Tabby card to their Apple/Google/Samsung wallet, the request is sent from Visa’s in-app SDK in the Tabby Mobile Application to the Visa network. For this, all the secure data required for the request is sent as a secure message from M2P to Tabby with a unique message identifier.&nbsp;</li><li>Visa, the Token Service Provider, identifies the Bank Identification Number (BIN) from the payload (through their Visa SDK) and sends it to the issuer processor.&nbsp;</li><li>M2P is the Issuer processor (also, a token service provider) that authenticates the card details along with the identity of the cardholder.&nbsp;</li><li>Then, M2P instructs Visa to issue or not issue tokens. Visa acts in accordance to the instructions and sends the token information to the digital wallet to store&nbsp;</li><li>M2P keeps Tabby updated on everything (every step involved in the token creation process as a notification) happening throughout the process.&nbsp;</li><li>The tokenized cards can now be used by cardholders without their card information getting exposed.&nbsp;</li></ul>The process is done only for the first time when the customer adds the card to any digital wallet/ wearables. Once complete, the cardholder can use the card for any purpose with total and seamless control over the card.&nbsp;M2P ITSP solution not only makes the tokenization process simpler but also helps Tabby provide the necessary reports to Apple and Visa on all the required information by the latter.&nbsp;If you want to know more about tokenization, and how it can help your business?&nbsp;Write to us at <a class="link" href="mailto:business@m2pfintech.com">business@m2pfintech.com</a>.&nbsp;<a class="link" href="https://m2pfintech.com/newsletter/" target="_blank" rel="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" href="https://www.linkedin.com/company/m2pfintech/mycompany/" target="_blank" rel="noopener">LinkedIn</a>&nbsp;and&nbsp;<a class="link" href="https://twitter.com/m2pfintech" target="_blank" rel="noopener">Twitter</a>&nbsp;for insightful fintech tales curated for curious minds like you.

Cracking Tokenization for BNPL Player Tabby

<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2023/01/AUA-2.webp" alt="M2P Fintech" title="" id="qrx9wqz1i" width="100%" height="60">Identity fraud is on the rise globally. To avert the dangers of this risk, businesses across industries need to be vigilant and conduct thorough identity verification, with no scope for errors or misrepresentation. If the identities of people involved viz., employees, customers, vendors, and other stakeholders, are not verified properly, businesses could suffer from security breaches, financial losses, regulatory penalties, and reputational damage. In India, Aadhaar serves as a trusted tool to weed out duplicate and fake identities.&nbsp; The Aadhaar card is a unique and potent document that enables cost-effective, smooth, and secure onboarding. But accessing and verifying the validity of Aadhaar cards from the UIDAI (Unique Identification Authority of India) server is not an easy task. Their security policies and other stringent protocols limit access to the UIDAI database. This is where AUA/KUA comes in as a robust and foolproof solution for accessing the Aadhaar database effortlessly and verifying identities swiftly. So, what is AUA and KUA?&nbsp; Let us break it down for you.<h1 class="heading-node" id="xckr8aasp" style="text-align: justify">What is AUA?</h1>Acronym for Authentication User Agency, AUA is a license given to a regulated entity authorized by UIDAI. The license enables businesses to use OTP and biometric-based Aadhaar authentication to verify the identities of the customer, employee, or any stakeholder. The verification response is not too elaborate. Only a ‘Yes’ or ‘No’ response is documented. The AUA license is versatile enough to benefit government institutions that disburse benefits and financial institutes that onboard customers or employees. It is important to note that AUAs are liable for the authentication process and the security and integrity of Aadhaar data.<h2 class="heading-node" id="5fvsbrq9w" style="text-align: justify">How AUA helps verify identity?</h2>When an authentication request is raised, AUA passes the request to the Authentication Server Agency (ASA) who then passes the request to the CIDR database of UIDAI. The OTP/biometric data provided by AUA is matched here on a real-time basis. The response (Yes / No) is pushed back to AUA from UIDAI via the ASA. To verify an identity, AUAs liaise with multiple Authentication Services Agencies (ASAs), which are entities that maintain secure leased line access with the UIDAI database.<h3 class="heading-node" id="bvp0bkfrz" style="text-align: justify">AUA and Sub AUA</h3>Sometimes the AUA sends authentication requests from other entities named "Sub AUAs," which is responsible for offering authentication services to customers on behalf of the AUA. The UIDAI directly authorizes the AUAs to use the Aadhaar system, while an AUA authorizes sub-AUAs to perform the authentication using the AUA route by sub-licensing it to Sub-AUA. The Sub-AUA will not have to maintain the entire infrastructure and compliance as per UIDAI compliance. AUA will handle those. Following the Aadhaar authentication, KYC authentication of customers is performed using KUA.<h2 class="heading-node" id="srsgv4yra" style="text-align: justify">What is KUA?</h2>Acronym for KYC User Agency, the KUA fetches the KYC details from the UIDAI server. The KYC checks are carried out in the UIDAI server by collecting Aadhaar Number and OTP / Biometrics (Fingerprint / Iris / Face). The response will contain data of customers viz., name, gender, date of birth, address, and photograph. The KYC request is sent from KUA through (KYC Services Agency) KSA to UIDAI. Businesses across industries must acquire an AUA/KUA license to upgrade their onboarding capabilities. The license ensures an additional layer of protection against fraud. Today, NBFCs are also eligible to apply for AUA/KUA licenses alongside RBI, SEBI, IRDA, and government-regulated businesses.<h2 class="heading-node" id="dk7jf1vai" style="text-align: justify">Why do businesses need AUA/KUA?</h2>AUA/KUA license assures speed, accuracy, and security of identity verification and KYC checks.&nbsp;Here are a few more reasons why your business requires AUA/KUA license.<ul class="list-node" id="gaoxflike"><li>Cuts costs associated with the manual, in-person document verification</li><li>Enables streamlined verification procedures</li><li>Ensures onboarding experience is smooth and seamless</li><li>Protects data using cutting-edge security</li><li>Reduces the danger of identity fraud and other security breaches</li><li>Boosts customer/employee trust, as identity verification and data are safe</li><li>Simplifies and eases user journey as the verification happens in an instant</li></ul><h2 class="heading-node" id="m27a66omw" style="text-align: justify">Challenges in acquiring AUA/KUA license</h2>As we already discussed above, acquiring the AUA/KUA license is not a walk in the park. It is fraught with a lot of challenges that make it a tedious process. Let’s delve into two important challenges here. Regulatory compliance: All businesses must adhere to stringent standards and regulations established by UIDAI to procure the AUA/KUA license. If compliance is compromised, businesses will have to deal with exorbitant fines, legal action, and reputational damage. Infrastructure and cost: Setting up and maintaining the necessary infrastructure and staff to get the AUA/KUA license can be expensive, labor-intensive, and time-consuming. To overcome the challenges in acquiring an AUA/KUA license, you need a <a class="link" href="https://syntizen.com/zen-aua">reliable RegTech partner</a> who can do the heavy lifting, while you focus on your core business. Here are some of the use cases of AUA/KUA.<h2 class="heading-node" id="wciutrwxx" style="text-align: justify">Use cases for AUA/KUA</h2><h3 class="heading-node" id="mgh56n2dr" style="text-align: justify">Streamline Customer Onboarding - BFSI</h3>AUA/KUA helps BFSI players with secure and reliable customer onboarding and KYC process using biometric authentication. The service enables quick execution of KYC processes, reduces the risk of data breach and unauthorized access to sensitive data.<h3 class="heading-node" id="zoldaec1c" style="text-align: justify">Pension Disbursal - Governments</h3>Governmental departments and agencies rely on AUA/KUA services for secure and seamless Aadhaar validation to verify identity and pension eligibility. The process of delivering financial support to senior citizens and disabled beneficiaries is made efficient, secure, and reliable.<h3 class="heading-node" id="nppzy95p3" style="text-align: justify">Online Services - Transport Department</h3>By using AUA/KUA services, government departments like the Transport Department of Telangana have been able to verify the identity of citizens efficiently and deliver online services seamlessly.&nbsp; The need to physically visit the Regional Transport Authority (RTA) offices for services was drastically reduced, making the process highly convenient and efficient for citizens.<h3 class="heading-node" id="esq88bs9h" style="text-align: justify">Contract Employee Authentication - Municipal Corporation</h3>AUA/KUA helps municipal corporations in tracking the attendance of sanitary workers accurately. Using biometric scanners, municipal corporations verify Aadhaar, at least three times in a day to prevent fraud and eliminate ghost workers. Biometric verification ensures the authenticity of workers and the accuracy of records. Municipal corporations deploy AUA/KUA services to maintain trustworthy records.<h3 class="heading-node" id="2z6yrlltv" style="text-align: justify">Employee Identification - Hospitals</h3>Hospitals leverage AUA/KUA services for hassle-free biometric verification of doctors and other healthcare professionals.&nbsp; The process helps hospital administration confirm the validity and availability of physicians and monitor their schedules.<h3 class="heading-node" id="4o77s744u" style="text-align: justify">Student Monitoring - Welfare Hostels</h3>The usage of AUA/KUA services and the installation of biometric scanner devices in welfare hostels have reduced incidences of ghost student records and increased efficiency in fund allocation and utilization. By helping hostel students authenticate themselves every day, the hostels can track their attendance precisely and get rid of ghost student records. The process has helped the administration prevent the misappropriation of funds and ensure resources are used efficiently to support the students.<h3 class="heading-node" id="z2jovtjh0" style="text-align: justify">Scholarship Monitoring - Universities/Colleges</h3>Tracking student attendance is imperative for colleges and universities. To prevent fraudulent activities or misrepresentations in biometrics, institutions can rely on AUA/KUA. It helps verify student identity quickly and accurately using the Aadhaar number. It also helps universities to disburse scholarships to students.<h2 class="heading-node" id="4hrtq082o" style="text-align: justify">AUA/KUA, a necessity for seamless identity verification</h2>AUA/KUA license is a vital investment for any business that requires seamless identity verification. Instead of taking on the complex and expensive task of implementing an in-house identity service, businesses can consider partnering with a reputable digital identity service provider that offers a comprehensive AUA/KUA solution to combat identity fraud. Check out our exclusive AUA/KUA suite that offers the following features.<ul class="list-node" id="mfwgkl508"><li>Cloud and on-premise hosting</li><li>Face authentication-based transactions</li><li>Scalable system (handles 10 million hits/day)</li><li>Live network operations team</li><li>Supports all stacks (Web, Windows &amp; Android)<ul class="list-node" id="pmn5y19a1"><li>UIDAI-approved biometric scanners</li><li>Fraud monitoring systems</li></ul></li><li>Multiple ASA switch (switch transactions to ASA)</li><li>Live dashboard monitoring</li><li>Assured UID compliance</li></ul>Want to know more about our AUA/KUA suite? Write to us at <a class="link" href="mailto:business@m2pfintech.com.&nbsp;">business@m2pfintech.com.&nbsp;</a> &nbsp; &nbsp;<a class="link" href="https://m2pfintech.com/newsletter/">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" href="https://www.linkedin.com/company/m2pfintech/mycompany/" target="_blank" rel="noopener">LinkedIn</a>&nbsp;and&nbsp;<a class="link" href="https://twitter.com/m2pfintech" target="_blank" rel="noopener">Twitter</a>&nbsp;for insightful fintech tales curated for curious minds like you.

Streamline Customer Identification with AUA/KUA

<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2023/01/EDO-suite-Banner-1.webp" alt="M2P Fintech" title="" width="100%" height="529">Does your organization collect or store Aadhaar numbers?&nbsp;&nbsp; Then you are at high risk.&nbsp;&nbsp; With identity thefts, data breaches, and cyber fraudsters on the rise, businesses are vulnerable to financial and reputational damage. While conducting <a class="link" href="https://m2pfintech.com/blog/know-your-customer-kyc-the-need-for-authentication/" target="_blank" rel="noopener">digital KYCs</a> that involve Aadhaar card verification, the risk of data exposure and misuse of customer/employee information by fraudulent entities is even greater. These privacy concerns and security breaches cost businesses billions in losses.&nbsp; Thus, it is imperative for organizations to follow strict security protocols for Aadhaar card verification. Complying with the Aadhaar masking mandates of regulators such as UIDAI, RBI, SEBI, and IRDAI, is vital to protect Aadhaar data.&nbsp;<h2 class="heading-node" id="ah6szvxl9" style="text-align: justify">What is Aadhaar masking?</h2>Aadhaar masking is a critical security directive issued by the UIDAI and regulatory bodies to protect Aadhaar data and prevent identity fraud and data scams. According to this mandate, the first 8 digits of your Aadhaar card number must be replaced by asterisks and appear as “XXXX-XXXX”, while the last 4 digits shall remain as it is. Aadhaar card masking serves as an extra layer of protection to conceal and protect sensitive information.&nbsp;&nbsp;<h2 class="heading-node" id="wnfhl36ra" style="text-align: justify">How Aadhaar masking came into prevalence?&nbsp;</h2>According to the <a class="link" href="https://uidai.gov.in/images/news/Judgement_26-Sep-2018.pdf" target="_blank" rel="noopener">Supreme Court of India’s judgment in 2018</a> on Aadhaar privacy concerns, “No entity, including a requesting entity, which is in possession of the Aadhaar number of an Aadhaar number holder, shall make public any database or record containing the Aadhaar numbers of individuals, unless the Aadhaar numbers have been redacted or blacked out through appropriate means, both in print and electronic form.”&nbsp;&nbsp; The UIDAI stipulated that no entity could save Aadhaar numbers in their database in any form (physical or virtual). However, the entity can and must mask the first 8 digits before storing any physical or virtual copy of the Aadhaar cards.&nbsp; Apart from the above regulators, the <a class="link" href="https://www.lifeinscouncil.org/component/cir_020_29.01.2019.PDF" target="_blank" rel="noopener">IRDAI,</a> <a class="link" href="https://www.rbi.org.in/Scripts/BS_ViewMasDirections.aspx?id=11566" target="_blank" rel="noopener">RBI,</a> <a class="link" href="https://www.sebi.gov.in/legal/circulars/apr-2020/clarification-on-know-your-client-kyc-process-and-use-of-technology-for-kyc_46565.html" target="_blank" rel="noopener">SEBI,</a> and The Ministry of Finance also came out with their mandates to cloak the Aadhaar numbers. &nbsp;<h2 class="heading-node" id="lmvf8p2ze" style="text-align: justify">Why Aadhaar masking?&nbsp;</h2>Following the regulations and judgments, the regulated entities in India must use only masked Aadhaar numbers in their existing databases and can accept only masked Aadhaar cards going forward. This could be the only way to reduce identity theft while ensuring compliance and data safety.&nbsp;<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2023/01/EDO-suite-masking-1.webp" alt="M2P Fintech" title="" width="100%" height="529">Organizations that fail to mask Aadhaar cards will face severe consequences in the form of penalties, reputational damage, additional audits, imprisonment, and/or even complete shutdown. Hence, being agile and staying up to date with regulatory requirements is crucial.&nbsp;&nbsp;<h2 class="heading-node" id="jev9xd6hg" style="text-align: justify">How can businesses optimize and automate Aadhaar masking?&nbsp;</h2>Businesses today find it challenging to address the operational aspects of compliance and data handling. Masking large chunks of Aadhaar card data accurately requires immense manpower, time, and cost. There is also a huge dependency on humans and could be prone to errors.&nbsp; Using a robust Aadhaar masking tool is a great way to optimize the process and drive efficiencies.&nbsp; Our EDO Suite helps businesses automate the task of Aadhaar masking in no time while ensuring accuracy and zero errors.&nbsp;&nbsp;<h2 class="heading-node" id="lnv5j9vro" style="text-align: justify">What is EDO Suite?&nbsp;</h2>Powered by AI and ML, EDO Suite is an efficient Aadhaar masking tool that intelligently detects and masks Aadhaar data instantly. It enables your organization to be 100% compliant with UIDAI and RBI regulations without any hassles.&nbsp;&nbsp; EDO suite’s instant masking feature covers up the first 8 digits, revealing only the last 4 instantaneously. It is capable of analyzing and masking only valid Aadhaar numbers from a group of random numbers.&nbsp;To ensure over 98.3% accuracy, the EDO suite employs the Verhoeff algorithm.&nbsp; A checksum formula for error detection, the Verhoeff algorithm is used to eliminate errors in data entry and validate Aadhaar numbers.&nbsp;&nbsp; EDO can be deployed entirely in-house at a very low cost, with no intervention or reliance on third-party algorithms. Till date, we have processed more than 10 crore Aadhaar numbers in multiple formats.&nbsp;<h2 class="heading-node" id="nb1rdh0io" style="text-align: justify">Key components of EDO&nbsp;</h2><img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2023/01/EDO-suite-masking-2-1.webp" alt="M2P Fintech" title="" width="100%" height="529">EDO Scan&nbsp; A smart tool that can scan the entire computer or server and mask all Aadhaar cards to provide detailed scan reports. This is primarily used for ‘Legacy Data Masking’.&nbsp;&nbsp; EDO Lens&nbsp; A camera SDK that can be integrated into any customer onboarding mobile solution and the Aadhaar number will be masked in real-time while capturing the document.&nbsp; EDO Connect&nbsp; Powerful APIs where an entity can send an Aadhaar image, and EDO Connect will return a masked Aadhaar.&nbsp;<h2 class="heading-node" id="tfbc1m9vh" style="text-align: justify">How does EDO work?&nbsp;</h2>EDO provides two primary services.&nbsp;<ul class="list-node" id="73uyxx4vs"><li>Legacy Data Masking&nbsp;&nbsp;</li><li>New Data Masking&nbsp;</li></ul>Legacy Data Masking&nbsp; Legacy data is consumer data that companies have already collected in the database since the issuance of the Aadhaar cards in 2010. EDO helps in masking those legacy data in a matter of seconds.<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2023/01/EDO-suite-masking-3.webp" alt="M2P Fintech" title="" width="100%" height="529">New Data Masking&nbsp; The new data is the real-time consumer data that is collected and added to the database. New Aadhaar data being added to the database can also be masked before storage.&nbsp;&nbsp;<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2023/01/EDO-suite-masking-4.webp" alt="M2P Fintech" title="" width="100%" height="529"><h2 class="heading-node" id="h237hl4pi" style="text-align: justify">Aadhaar masking made quick, simple, and convenient</h2>EDO caters to a business’s Aadhaar masking needs with simple, transparent pricing, and best-in-class technology. It is well-suited for both on-premise and cloud model.&nbsp;&nbsp; Features and Benefits&nbsp; 1. Supports multi-format masking &nbsp;<ul class="list-node" id="p5pg7p1v9"><li>First eight digits of the Aadhaar with a red strip and ‘XXXX-XXXX' in excel sheets&nbsp;</li><li>Multiple Aadhaar numbers on the same page/image&nbsp;</li><li>Aadhaar numbers in different formats/files&nbsp;&nbsp;&nbsp;</li><li>Only Aadhaar numbers in an image with a foreign object. For e.g., an Aadhaar card with a mouse/pen&nbsp;</li></ul>2. Won't mask non-Aadhaar numbers&nbsp; 3. Seamless masking with multiple options<ul class="list-node" id="trs6hfopa"><li>Full Detection - Scans the entire system&nbsp;</li><li>Choose Folder – Scans only a specific folder&nbsp;&nbsp;&nbsp;&nbsp;</li></ul><ul class="list-node" id="469pjy9v3"><li>Instant Masking - Masks any single image&nbsp;</li><li>Auto Scan - Sets the time for automatic masking of the entire system or a specific folder&nbsp;</li></ul>4. Detects and masks the selected files in order to thoroughly analyze dupes, non-Aadhaar numbers, and formats&nbsp; 5. The detection results are made available as downloadable reports&nbsp; 6. Cancels non-Aadhaar data and provides date, scan IDs, time stamps, and status (canceled/completed)&nbsp; Ready to mask Aadhaar in an instant, the right way?&nbsp;&nbsp; Connect with our expert team at <a class="link" href="mailto:business@m2pfintech.com">business@m2pfintech.com</a>.&nbsp; We’ll be glad to reach out and get you the best-in-class Aadhaar masking solutions right away!&nbsp; <a class="link" href="https://m2pfintech.com/newsletter/" target="_blank" rel="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" href="https://www.linkedin.com/company/m2pfintech/mycompany/" target="_blank" rel="noopener">LinkedIn</a>&nbsp;and&nbsp;<a class="link" href="https://twitter.com/m2pfintech" target="_blank" rel="noopener">Twitter</a>&nbsp;for insightful fintech tales curated for curious minds like you.

Mask Aadhaar in an Instant, the Right Way

<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2023/01/Medium-2.webp" alt="M2P Fintech" title="" id="il8fa0frb" width="100%" height="157">Businesses record revenues and expenses every day. Ever wondered why it is important to accurately document these transactions? Maintaining accurate financial records is critical to the success of any business. It helps the management make informed accounting decisions and ensures a strong base for growth and operations. Payment reconciliation secures the financial health of a business. In the next few minutes, you will learn what payment reconciliation is all about, why it matters, its benefits, M2P’s Recon360, why it is a game changer, and how it works. Let’s dive in!<h2 class="heading-node" id="c692iadj7">What is Payment Reconciliation? Why does it Matter?</h2>Payment reconciliation is a process that ensures the accuracy of financial records by matching them with bank statements and world-leading interchanges, viz., transaction processing switches and core banking solutions. It is essential for businesses to ensure that every transaction is properly recorded and up-to-date. In today's age of digital payments, businesses are handling multiple payment gateways, interchange reports, settlement vouchers, and bank financial postings across different partners and touchpoints. Thus, it is imperative to keep track of all income and expenses for sound financial health. Businesses must balance their payments on a cycle and time zone-based reconciliation. It is a vital aspect of bookkeeping that ensures the integrity of financial records. This process must be performed regularly for data accuracy and compliance with financial regulations.<h2 class="heading-node" id="kqn6ucejv">Benefits of Payment Reconciliation</h2>Frequent, regular, and automated payment reconciliation offers the following benefits.<ul class="list-node" id="tf6p5m0yi"><li>Identifies and resolves errors in financial records</li><li>Tracks late or unpaid invoices</li><li>Helps maintain accurate financial records</li></ul><h3 class="heading-node" id="imxff9564">Identifies and resolves errors in financial records</h3>Payment reconciliation detects bookkeeping errors and unauthorized payments. By comparing internal and external records, businesses can identify discrepancies early on and quickly resolve issues related to cash flow or security breaches. This prevents fraud and ensures the financial stability and health of a business.<h3 class="heading-node" id="j617aalc8">Tracks late or unpaid invoices</h3>Reconciling payments on a regular basis helps businesses stay on top of late or unpaid invoices. Businesses can identify missed or delayed payments by comparing internal and external records and take action to follow up and collect them. The process not only saves effort and time but also prevents financial stress.<h3 class="heading-node" id="7bbllei6z">Helps maintain accurate financial records&nbsp;</h3>To make data-driven decisions, accurate financial records are a must-have. By reconciling payments regularly, businesses ensure that their financial records are accurate and up-to-date. Reconciliation demonstrates financial stability when there is a need to secure investments or loans. It also supports regulatory compliance and prevents legal repercussions.<h2 class="heading-node" id="nh8rexmnu">How Payment Reconciliation Works</h2>Payment reconciliation involves matching financial records with those from a bank, internet banking, NEFT, RTGS, and AEPS, for thoroughness and accuracy. By using a bank feed, the finance team can easily compare and verify payments made against accounts, thus maintaining accurate financial records. Payment reconciliation comprises two processes, viz., internal and external.<h3 class="heading-node" id="ln5z8t7hn">Internal Reconciliation</h3>Maintaining accurate records of transactions can be done using internal sources such as accounting software, spreadsheets, and other record maintenance systems. Some businesses keep physical copies of receipts, invoices, and billing paperwork as a means of maintaining records. However, this physical method could be prone to human error and may not be as reliable as digital record-keeping. Choosing the right internal reconciliation method is crucial, as it could involve harmonizing physical and digital records.<h3 class="heading-node" id="evguoznb2">External Reconciliation</h3>External reconciliation relies on transaction data coming in from external sources like bank statements that hold details of incoming and outgoing cash flow. As these statements are digitally generated and contain critical data pertaining to payments, they are reliable for accounting and reconciliation needs.<h3 class="heading-node" id="3xqe1i26g">Matching Internal with External</h3>As an ideal practice, businesses must match and cross-check internal and external records to reconcile the transactions. Entries in internal reconciliation should match those from external reconciliation. If there are discrepancies, businesses must get to the root of it to identify and resolve errors or breaches, if any.<h2 class="heading-node" id="emp5l9908">Types of Payment Reconciliation</h2>Depending on the complexity and transaction type, the payment reconciliation process can differ from one business to another. Here are common types of payment reconciliation companies follow.<h3 class="heading-node" id="cf0nbifgi">Rule-based reconciliation</h3>The rule-based reconciliation process is automated and uses predefined criteria or rules to match transactions between different accounts. These rules are programmed into the system, and the software automatically verifies matches and exceptions based on these rules. This method is highly efficient, saves time, and reduces errors compared to manual reconciliation methods. It can be customized to fit specific business needs, as the rules can be modified and updated as needed. One flexible approach to rule-based reconciliation is relaxed matching. Instead of deploying strict rules, it allows for some level of deviation or tolerance in certain parameters such as date and amount. This approach is less accurate, much faster, and needs less manual intervention. It is often used in high-volume and low-value transactions where speed and efficiency are prioritized over absolute accuracy.<h3 class="heading-node" id="pothdb3so">Card reconciliation</h3>Accountants use the card reconciliation method to compare credit or debit card statements to General Ledger (GL) accounts. It must be ensured that the information on a credit card bill and the information represented on the GL are consistent, as every business transaction is recorded within the GL and vice versa.<h3 class="heading-node" id="30lrzycdj">Cash reconciliation</h3>Cash reconciliation is used to verify the usage of cash from the register. The purpose of cash reconciliation is to ensure that the recorded cash balances and the bank statements match up. The cash reconciliation method enables businesses to detect inconsistencies and pinpoint the areas where the ledger and statement do not match up.<h3 class="heading-node" id="smzbl80w6">Digital wallet reconciliation</h3>The process of digital wallet reconciliation is similar to credit card reconciliation. The only difference is the mode of payment. It is recommended to report payments received via digital wallets separately. That way they can be compared with the necessary merchant reports to ensure that records are accurate and the numbers on statements make sense.<h3 class="heading-node" id="6lm630sk5">Real-time automatic payment reconciliation</h3>Automated payment reconciliation can accelerate month-end accounting close, reduce errors, and improve cash flow control. The ability to handle live transaction data is provided by real-time reconciliation for banks and other financial institutions.<h2 class="heading-node" id="kkee8uxpt">Challenges in Payment Reconciliation</h2>Payment reconciliation is imperative for any business. However, it comes with its own set of challenges. These challenges range from simple errors to more complex issues that can cause significant financial losses.<h3 class="heading-node" id="3d5w4wo5a">Manual processes</h3>Manual processes are prone to errors and time-consuming, thereby slowing down the reconciliation process. When transactions are recorded and reconciled manually, there is a greater risk of incorrect dates, transposed numbers, and other inaccuracies. Manual processes also make it difficult to keep up with the volume of transactions and identify discrepancies.<h3 class="heading-node" id="wr6ruhh5h">Data discrepancies</h3>With multiple payment partners and different types of financial transactions, it can be difficult to ensure that all the data received is consistent and in a similar format. When data from disparate sources are not consistent, it can be difficult to match transactions between different accounts. Inconsistent data that lacks standardization can lead to processing delays, inaccurate reporting, and erroneous reconciling. It can also cause difficulty in achieving compliance and identifying frauds and breaches.<h3 class="heading-node" id="gfcp9fiht">Lack of visibility and control</h3>In today's fast-paced business environment, real-time data visibility and transparency in financial reporting are must-haves. However, several businesses still depend on manual spreadsheet-based processes for reconciliation, which results in inaccuracies, lack of control, and visibility. This negatively impacts credibility, strategic decisions, and long-term success.To resolve the challenges explained above, several businesses are turning to automation and the use of best-in-class account or payment reconciliation software.<h2 class="heading-node" id="k69bej3lp">How can businesses choose the best Payment Reconciliation solution?</h2>Before choosing a reconciling solution, businesses must answer 3 crucial questions.<ol class="list-node" id="l9gin5cmh"><li>Is it platform agnostic?</li><li>Does it track and monitor real-time transactions?</li><li>Does it offer best-in-class data security measures?</li></ol>M2P’s Recon360 offers all this and more!<h2 class="heading-node" id="6f41len3j">RECON360 – Redefining Payment Reconciliation</h2>Recon360 is a complete solution for reconciling payments using automated data matching and instant monitoring of multiple transactions. The solution maintains financial records accurately and can be deployed seamlessly.<h3 class="heading-node" id="m3t0mpf4o">Key Features</h3><ul class="list-node" id="08uahal9i"><li>Automated, flexible, with extended data matching</li><li>Cloud &amp; dataset agnostic</li><li>Seamless deployment</li><li>Data qualification &amp; insight</li><li>Multi behavior system</li><li>Automatic exception management</li><li>Dynamic reporting engine</li><li>Instant regulatory compliance</li></ul>We also offer best-in-class features for business end users, that includes a dynamic reporting engine, dispute resolution, and exception handling to cut operating costs and achieve business goals. Want to make payment reconciliation work for you? Recon360 is the answer! Write to us at <a class="link" href="mailto:business@m2pfintech.com">business@m2pfintech.com</a> to get started!<a class="link" href="https://m2pfintech.com/newsletter/" target="_blank" rel="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" href="https://www.linkedin.com/company/m2pfintech/mycompany/" target="_blank" rel="noopener">LinkedIn</a>&nbsp;and&nbsp;<a class="link" href="https://twitter.com/m2pfintech" target="_blank" rel="noopener">Twitter</a>&nbsp;for insightful fintech tales curated for curious minds like you.

Recon360 - Redefining Payment Reconciliation

<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2023/01/Fintech-trends-banner-2.webp" alt="M2P Fintech" title="" width="100%" height="358">2022 was a rollercoaster for the fintech industry. Macroeconomic upheavals, intensifying competition, and regulatory headwinds contributed to the great fintech reset. However, with advances in technology innovation, increasing digital adoption, and improving public infrastructure, the industry overcame hurdles and emerged stronger. Swimming against the tide with turnaround strategies and course corrections, fintech businesses collaborated, consolidated, and diversified to enable sustainable and accessible financial solutions without compromising on people, compliance, and growth. Now, the future of fintech is bright. Blurring boundaries and transforming the way people transact, fintech has been a beacon of hope to many. People across all walks of life and in remote corners without access to fancy smartphones and devices have been able to access digital banking and financial services just by using biometrics and other fintech-led payments. Fintech companies have played a phenomenal role in facilitating this financial inclusion without greater emphasis on security, speed, or convenience. Valued at around $132 billion in 2022,&nbsp;the fintech industry is estimated to grow at 25% CAGR to reach <a class="link" href="https://www.marketdataforecast.com/market-reports/fintech-market">$324 billion</a> in 2027. The ability to improve accessibility, drive inclusion, enhance customer experience, and reduce costs are key drivers behind the growth projection.&nbsp;&nbsp;<a class="link" href="https://m2pfintech.com/blog/future-of-core-banking-systems/">Core Banking</a>, <a class="link" href="https://m2pfintech.com/blog/rbis-new-digital-lending-guidelines-will-it-be-a-game-changer/">Digital Lending</a>, <a class="link" href="https://m2pfintech.com/blog/factors-and-psychology-behind-the-great-bnpl-allure/">Buy Now Pay Later</a> (BNPL), <a class="link" href="https://m2pfintech.com/blog/upi-the-driver-of-economic-growth-and-inclusion/">Unified Payments Interface (UPI),</a> Credit Cards, and other <a class="link" href="https://m2pfintech.com/blog/ready-to-sneak-peek-into-global-cashless-societies/">Cashless</a> Payment modes dominated markets, while Blockchain emerged resilient with RBI adopting the technology for CBDC. Collaborations, consolidations, and platformizations last year set a great tone for 2023.<h2 class="heading-node" id="qp5iitvs9" style="text-align: justify">Trends we can expect in 2023</h2>Consistent customer-centric innovations, partnerships between banks and fintechs, regulatory interventions, and better accessibility - all point towards a promising future for fintech. Here are a few trends we can expect to see in 2023.<ul class="list-node" id="jxu8ecnrq"><li><a class="link" href="#embeddedfinance">Embedded Finance</a></li><li><a class="link" href="#sf">Sustainable Fintech</a></li><li><a class="link" href="#af">Alternative Financing</a></li><li><a class="link" href="#sa">Super Apps</a></li><li><a class="link" href="#ai">Artificial Intelligence</a></li><li><a class="link" href="#cp">Contactless Payments</a></li><li><a class="link" href="#bc">Blockchain</a></li><li><a class="link" href="#mv">Metaverse</a></li></ul><h3 class="heading-node" id="embeddedfinance" style="text-align: justify">1. Embedded Finance &nbsp;</h3><a class="link" href="https://m2pfintech.com/blog/embedded-finance-101-the-bridge-connecting-tech-and-financial-services/">Embedded finance</a> will see exponential growth in 2023 with emerging models that will help businesses thrive. Valued at over <a class="link" href="https://www.simon-torrance.com/blog/EmbeddedFinance1#:~:text=Embedded%20Finance%20offers%20one%20of%20the%20most%20exciting,value%20of%20the%20world%E2%80%99s%20top%20thirty%20banks%20today.">7 trillion-dollar</a>, embedded finance enables smooth integration of financial services into non-financial platforms or applications. Subsets of embedded finance viz., embedded credit, embedded payments, embedded insurance, and embedded banking will majorly benefit SMEs, MSMEs, and other app-based businesses by helping them scale product offerings and customer lifetime value while monetizing their customer base. As the embedded finance space grows, businesses will have the leeway to lower expenses, increase revenue streams, and innovate to deliver personalized, customer-centric products and services, while fintechs handle the heavy lifting on technology, compliance, and delivery.<h3 class="heading-node" id="sf" style="text-align: justify">2. Sustainable Fintech</h3>As the world heads towards net-zero and decarbonization by 2030, fintechs need to take sustainability seriously. In 2023, financial health, <a class="link" href="https://m2pfintech.com/blog/how-m2p-maps-sustainability-with-finance/">sustainable practices,</a> and environmental well-being will be deeply interconnected. A recent Eurogroup survey shows us that 67% of consumers demand sustainability engagement from their bank. &nbsp;And according to a study by Cornerstone Advisors, 70% of Gen-Z and Millennial consumers wanted to track their carbon footprint. Customers are eager to understand how their spending habits affect climate change and if their financial service provider invests in businesses that harm the environment. Being transparent with sustainability practices, incentivizing sustainable engagement, and introducing metrics to track climate impact, could be starting steps to transform businesses into <a class="link" href="https://m2pfintech.com/blog/climate-fintech-fintechs-leading-the-green-tech/">green powerhouses</a>.<h3 class="heading-node" id="af" style="text-align: justify">3. Alternative Financing &nbsp;</h3>There was a time when traditional financial players dominated the lending industry. But those times are changing now. Secure alternative financing options from non-banking fintech companies are emerging rapidly. In fact, the alternative financing industry is valued at <a class="link" href="https://www.grandviewresearch.com/industry-analysis/alternative-financing-market-report">$6.62 billion</a> and is expected to grow at 20% in 2023. The lending industry is democratized with co-lending business models to serve versatile customers, SMEs, MSMEs, and businesses across size and scale.&nbsp;With more core lending players entering the game, evolving regulatory frameworks, and a vast consumer base in need and with access to equitable financial instruments, the alternative financing market is ripe for the taking.<h3 class="heading-node" id="sa" style="text-align: justify">4. Super Apps&nbsp;</h3>2023 will the year for <a class="link" href="https://m2pfintech.com/blog/super-apps-in-consumer-banking-what-role-does-open-banking-play/">super apps</a>. It will be the swiss army knife for businesses as it consolidates multiple applications and eliminates the need for customers and employees to toggle between disparate applications. Just one super app will be able to provide enhanced mobile-first experiences across an aggregated range of services for the growing digital-native generation. Gartner predicts that by 2027, more than 50% of the global population will be active users of super apps. So, it's high time financial businesses leverage the first-mover advantage and develop super apps that fuses the beneficial attributes of an app, platform and digital ecosystem.<h3 class="heading-node" id="ai" style="text-align: justify">5. Artificial Intelligence (AI)</h3>High on data and customer experience, fintech industry will rely heavily on AI for analytics, decision-making, and customer support. Facilitating seamless onboarding, compliance, product customizations, and payments, AI will be the game changer that reduces overhead cost and operational risk along with improving security, and sorting legacy issues. Valued at <a class="link" href="https://www.grandviewresearch.com/industry-analysis/artificial-intelligence-in-fintech-market-report">$9.4 bn</a>, <a class="link" href="https://m2pfintech.com/blog/how-is-ai-changing-the-financial-industry-top-6-use-cases-in-fintech-and-banking/">AI in fintech</a> holds a 16.5% growth potential. And Machine Learning (ML)-based models have been adopted by companies in the financial space to ace real-time target marketing and risk management. But here’s the billion-dollar question. Will AI ever replace humans in fintech? We don’t think so. &nbsp;Complement yes. But not replace.<h3 class="heading-node" id="cp" style="text-align: justify">6. Contactless Payments</h3>The pandemic made contactless payments and shopping the new norm. And there’s no turning back from there.&nbsp; Offering immense speed, security, hygiene, and convenience, technologies like NFC, RFID, and QR codes have simplified checkouts and have taken the payments industry by storm. Valued at $2.2 bn, the contactless payments market is expected to grow at 20% CAGR to reach <a class="link" href="https://www.businesswire.com/news/home/20220106005590/en/The-Worldwide-Contactless-Payment-Industry-is-Expected-to-Reach-12.6-Billion-by-2030---ResearchAndMarkets.com">$12 bn</a> by 2030. As research firms predict exponential growth in wearables, smart devices and contactless cards, fintechs must keep up with the demand for contactless payments.<h3 class="heading-node" id="bc" style="text-align: justify">7. Blockchain</h3>The future of <a class="link" href="https://m2pfintech.com/blog/blockchain-and-fintech-use-cases-and-applications/">blockchain</a> is solid despite setbacks like the crypto crash. Its inherent strength in security, transparency, speed, cost efficiency, and efficient storage will play out as Web3 and <a class="link" href="https://m2pfintech.com/blog/central-bank-digital-currency-cbdc-101-a-primer/">CBDC</a> adoption increases. Blockchain-based data sharing, smart contracts, payment tracking, peer-to-peer lending, encryptions, decentralized architectures and ecosystems, and cybersecurity will be key emerging trends in 2023. The fintech blockchain market size is expected to hit <a class="link" href="https://www.marketsandmarkets.com/Market-Reports/fintech-blockchain-market-38566589.html#:~:text=The%20FinTech%20blockchain%20market%20is%20expected%20to%20grow,Rate%20%28CAGR%29%20of%2075.9%25%20during%20the%20forecast%20period.">$6.2 mn</a> by the end of 2023. So, it's high time fintechs give blockchain some mndspace.<h3 class="heading-node" id="mv" style="text-align: justify">8. Metaverse</h3>Sparking some of the hottest tech discussions, metaverse shook the world with its decentralized, community-owned, virtual utopia. &nbsp;Though in the early developmental stages, metaverse is considered to be the next big evolution in the world of fintech, with the potential to transform how people work, shop, live, and transact. According to a recent Goldman Sachs research, metaverse could give rise to a <a class="link" href="https://newseu.cgtn.com/news/2022-06-13/Metaverse-valued-at-12-trillion-a-year-to-the-global-economy-1aKNYwIjyp2/index.html">$12 trillion</a> virtual economy with intense activity around cross-border payments, financial assets creation, safekeeping and trading. Leveraging Virtual Reality (VR) and Augmented Reality (AR), this virtual phenomenon enables fun and personalized banking and transactions. But the flipside of metaverse is the security concerns that may arise, which if addressed will hold massive promises for the fintech industry. With this we conclude our fintech trends for 2023. While it is challenging to predict exactly how fintech will unfold, we can say with reasonable certainty that 2023 will be an interesting one for the industry, India, and the world. What do you think of these trends? Let us know in the comments! Have a great 2023! Stay connected for the latest fintech news, views, updates, and more.<a class="link" href="https://m2pfintech.com/newsletter/">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" href="https://www.linkedin.com/company/m2pfintech/mycompany/">LinkedIn</a>&nbsp;and&nbsp;<a class="link" href="https://twitter.com/m2pfintech">Twitter</a>&nbsp;for insightful fintech tales curated for curious minds like you.

8 Fintech Trends to Look Out for in 2023

<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2022/12/Blog-1.webp" alt="M2P Fintech" title="" width="100%" height="253">2022 is drawing to a close. And this year's last star of the month series is here!So, buckle up folks!Pave the way for Aditya Narasimhan, our VP of Product and Client Delivery.A table tennis coach, superjock, and fintech product delivery champion, Aditya is an inspiration to many. Master at the art of work-life synergy, this sportive M2Peer is a staunch believer of the fact that life never stops teaching, and he must never stop learning.Curious to know what makes Aditya shine? We were too.We got into a candid conversation with him to uncover his secret to success. But what we heard was even more amazing.Spoiler alert: Fun revelations ahead!Here you go!<h2 class="heading-node" id="t9kuaqxvj" style="text-align: justify">How do you usually start your workday?</h2>Learning is my passion. Each day I look forward to greater learning. I start my workday with simple prepping that involves breaking targets into smaller, digestible bytes and jotting down pending tasks in my to-do list. Then I get into action by completing a couple of tasks and sip heavenly coffee with a sense of accomplishment.Later I sync up with my team, understand and discuss their queries, ensuring that there is constant interaction irrespective of whether its work, fun, or travel.<h2 class="heading-node" id="cc258asf0" style="text-align: justify">What are your main responsibilities as VP - Product and Client Delivery?</h2>I recently moved to the role of leading development and delivery of Fleet Payments product. My responsibility here is to build the product by collaborating with various stakeholders like banks, fintechs, aggregators, and regulators.Hailing from a background in banking and commercial vehicle finance, it is exciting for me to blend my experience to create innovative payments methods around FASTag, fuel, and driver expenses. I enjoy helping commercial vehicle businesses by providing a bankable financial layer to endorse products like fleet payments management for fleet owners, fuel and toll credit systems for lenders, and neobanking for drivers.<h2 class="heading-node" id="a8gouebna" style="text-align: justify">How have you grown through the years as an M2Peer?</h2>It was a big gamble for me to join M2P. And I’m loving every second spent in the office. It's been a little more than 40 months in this organization. The experience has been great.I am thankful for being one of the first set of hires in Business Development (BD) and Product roles. Probably the only handful of people to have experienced the BD role, implementation, account management, bank interaction, and product development. I feel both proud and humbled to have contributed to all victories and new learnings.<h2 class="heading-node" id="dkrxqjhcj" style="text-align: justify">Is there a quote/saying that motivates you?</h2>Being a sports person, there are many quotes that motivate me. The most addictive one is this.‘The more you sweat in practice, the lesser you bleed in the battle.’And this is something I experience and correlate with M2P. They constantly re-engineer to improve the client’s experience. And so, we manage and thrive irrespective of the disruption.My next favorite quote is this from Benjamin Franklin.&nbsp;‘Being ignorant is not so much a shame, as being unwilling to learn.’And finally, another one of my favorite sayings is, ‘Everything happens for a reason.’<h2 class="heading-node" id="znst90n7h" style="text-align: justify">What's that one thing your colleagues don't know about you?</h2>I am usually an open book. However, there is some behind-the-scene action I’d like to share now.I enjoy acting and have played a few roles in Tamil cinema and soaps during my college days.<h2 class="heading-node" id="qwueyr54m" style="text-align: justify">Have you played a practical joke in college/school?</h2>Oh yes. I was a total prankster during college. Here's one of the pranks I recall.Now this was the time when pizzas were delivered to a location over just a call. My group of friends and I sneaked into the staff room when no one was around and ordered 3 large pizzas in the name of the principal from the landline there. It became a huge embarrassment to the school, and the principal had to pay for it. However, the information was leaked, and we were caught a week later. 😊<h2 class="heading-node" id="s7z5uoq8h" style="text-align: justify">What inspires you the most about M2P?</h2>The team of founders, across M2P and the recently acquired brands. Their quality of giving complete freedom with responsibility inspires me the most. Other inspirational traits M2Peers exhibit are great respect, constant learning, and ownership over their jobs.<h2 class="heading-node" id="zdoyk0bf0" style="text-align: justify">What's your idea of a perfect day?</h2>For a day to be perfect, it must be filled with as many insights as possible. And that makes me look forward to the next day.<h2 class="heading-node" id="hv0buv63g" style="text-align: justify">What was your career path before joining M2P, and how has it changed?</h2>Right from my school and college days, I was a passionate table tennis player and competed at the national level. So, during my master's degree, I was conflicted between going pro in table tennis or taking up a campus offer from Federal Bank.It was like a toss of a coin, and I’ve never regretted my decision.&nbsp;I started my career with Federal Bank and moved on with Cholamandalam Finance in the commercial vehicle lending space. That’s when I got introduced to M2P.&nbsp; My journey as an M2Peer has been both blissful and exciting so far!<h2 class="heading-node" id="blcy2d9vd" style="text-align: justify">What are your hobbies/interests?</h2>I’ve still kept my passion for Table Tennis alive. I coach these days and participate in events representing M2P, be it a corporate, state, or national event.I also train the Tamil Nadu Senior State Table Tennis Team every year. For this reason, I am grateful to M2P for allowing me to pursue my passion.<h2 class="heading-node" id="mjhb0wdve" style="text-align: justify">Anything else you want to share about M2P?</h2>M2P is an incredible place to learn and grow. You need to be curious and updated on the regulations, bank strategies, and fintech ideas to make necessary changes to your products and platforms. M2P has come a long way in identifying problems and developing innovative approaches to address them. This marks a significant milestone in its journey.I am grateful for the faith and exposure that M2P has offered me. I look forward for the great journey ahead.Kudos to all M2Peers!Stick around, until we get back with an awesome story of another M2P star.<a class="link" href="https://m2pfintech.com/newsletter/">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" href="https://www.linkedin.com/company/m2pfintech/mycompany/">LinkedIn</a>&nbsp;and&nbsp;<a class="link" href="https://twitter.com/m2pfintech">Twitter</a>&nbsp;for insightful fintech tales curated for curious minds like you.

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