Build vs. Buy for KYC: When In-House Identity Verification Stops Making Sense

Use Cases of Merchant Acquiring: QR, POS, SoftPOS, BNPL and More

KYC for Microfinance: Biometric eKYC in Low-Connectivity, Field-Led Onboarding

<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/marketing-cms/m2p-blog/2026/09/m2p_kyc_suite_creative_2000x1000.webp" alt="CKYC, eKYC, Video KYC — Explained. Consolidated. Compliant." title="" id="1g0aimrri" width="100%" height="362">Every bank, NBFC, fintech, insurer, and increasingly every government service desk in India runs on the same underlying question: is this person who they say they are? The answer used to take days and a stack of photocopies. Today, it's expected to take seconds — without compromising on compliance, fraud prevention, or customer experience.That shift is why "KYC software" has become one of the most searched terms in Indian BFSI technology procurement. But the term hides a lot of complexity. Search for it and you'll find a dozen vendors, a dozen acronyms — CKYC, eKYC, VKYC, AUA, KUA — and very little that actually explains how these pieces fit together, what to look for before buying, or what problems still don't have great answers.This guide is meant to be the reference point. It covers what KYC software actually is, the components that make up a complete stack, the evaluation questions most buyers don't think to ask, the compliance landscape it has to operate inside, and where the category is headed next.<h2 class="heading-node" id="9wni4ji28">What Is KYC Software, Exactly?</h2>KYC(Know Your Customer) is a regulatory requirement, not a product. KYC software is the technology layer that lets a regulated institution meet that requirement digitally: capturing a customer's identity, verifying it against authoritative sources, checking it for fraud or tampering, and maintaining an auditable record, all without a human being physically checking a photocopy of a PAN card.In India, this has a specific technical shape because of two connected but distinct government identity infrastructures:<ul class="list-node" id="mi30ir1k1"><li>CKYC (Central KYC Registry) — a central repository (maintained by CERSAI) that stores KYC records once and lets any regulated entity retrieve them instantly, rather than re-collecting the same documents every time a customer opens a new account elsewhere.</li><li>Aadhaar-based eKYC — verification against UIDAI's Aadhaar database, accessed through licensed AUA/KUA (Authentication User Agency / KYC User Agency) integrations.</li></ul>Everything else in a modern KYC software stack — video verification, document OCR, biometric matching, fraud scoring, masking — exists to make those two verification paths faster, more secure, and usable across more channels (web, app, branch, call centre, kiosk).<h1 class="heading-node" id="1klysmv0w">The Components of a Complete KYC Software Stack</h1>If you're evaluating KYC software for the first time, the acronyms are the first wall you hit. Here's what each piece actually does and when you need it — because in practice, most institutions need several of these working together, not just one.<h2 class="heading-node" id="bvuq852ab">CKYC Retrieval</h2>Pulls a customer's existing KYC record using their OVD (officially valid document) number, date of birth, and mobile number. If the customer has ever completed KYC anywhere in the regulated financial system, this can complete onboarding almost instantly — no fresh document upload needed. This is usually the first check a well-designed KYC software flow should attempt, since it's the fastest and cheapest path when it hits.<h2 class="heading-node" id="hphmnisyx">Aadhaar eKYC (AUA/KUA)</h2>When there's no CKYC record to retrieve, Aadhaar-based authentication is the next layer — verifying identity via OTP, fingerprint, face, or iris, and fetching demographic data (name, DOB, address, photograph) directly from UIDAI. This requires the vendor to hold live AUA/KUA licensing, not just claim "Aadhaar integration" — a distinction worth confirming during vendor evaluation, since sub-licensing arrangements vary in reliability and audit-readiness.<h2 class="heading-node" id="rvlxo8k65">Video KYC (VKYC)</h2>RBI's video-based customer identification process (V-CIP) allows fully remote, branch-free onboarding — a human or AI-assisted agent verifies the customer's live video, checks document authenticity, and confirms liveness, all in one session. This matters enormously for lenders and neobanks trying to acquire customers in geographies where opening a physical branch isn't viable, and for institutions that need to serve customers without reliable Aadhaar OTP access (NRIs, elderly customers, low-connectivity regions).<h2 class="heading-node" id="wz3dugzb1">Min-KYC</h2>A lesser-known but increasingly important option: a CKYC-driven onboarding path that doesn't require Aadhaar verification at all. This exists for use cases where full KYC can be completed later (e.g., certain prepaid instruments, small-value accounts) and matters for products that need to go to market fast, in geographies or customer segments where Aadhaar-linked onboarding adds friction or isn't the ideal first step. It's rarely discussed in KYC software marketing, but it's often the fastest, cheapest onboarding path available for eligible use cases.<h2 class="heading-node" id="mwda25dsb">Instant Background Verification</h2>Beyond identity, many onboarding flows also need to check employment history, court records, and address — particularly for lending, hiring, and high-value account opening. Paperless, consent-driven background checks reduce this from a multi-day manual process to something that runs inline with digital onboarding.<h2 class="heading-node" id="45un4891s">Aadhaar Masking</h2>A narrower but non-negotiable requirement under UIDAI rules: any entity storing or displaying Aadhaar numbers must mask the first eight digits. Good KYC software handles this automatically and extends it to custom document formats — not just standard Aadhaar cards — since institutions often need to mask Aadhaar numbers embedded in other scanned documents too.<h2 class="heading-node" id="bld62nlcj">Identity Microservices</h2>For engineering teams building bespoke onboarding flows rather than adopting an off-the-shelf journey, granular APIs matter more than a packaged UI: liveness detection, OCR extraction, face match, GST/KYB (Know Your Business) checks, crime record checks, and AML screening as individually callable services. This is the layer that lets a product team compose their own flow instead of being boxed into a vendor's default journey.<h1 class="heading-node" id="evsu6w33e">What to Actually Evaluate Before Buying KYC Software</h1>Most KYC software comparisons stop at "does it do Aadhaar eKYC and Video KYC." That's table stakes. The questions that actually differentiate vendors — and that most vendor pages, including product pages across the industry, don't answer clearly — are these:1. Fraud detection accuracy, not just fraud detection claims. Almost every vendor claims "AI-powered fraud detection." Few publish what that means in practice: false-positive rates, spoofed-image detection accuracy, deepfake resilience for video KYC, and how forensic checks perform against real attack patterns (photo-of-photo, screen replay, synthetic identity documents). When evaluating a KYC software vendor, ask for these numbers directly, or for reference customers who can speak to fraud outcomes post-implementation — not just onboarding-speed outcomes.2. On-premise vs. cloud availability. Cloud-only KYC software is the default assumption in most vendor pitches, but it's a dealbreaker for public sector institutions, PSU banks, and any entity with data-residency or air-gapped infrastructure mandates. A vendor that genuinely supports both cloud and on-premise deployment — not just "can be discussed" — is solving a real, underserved requirement.3. Total cost of ownership, beyond the per-transaction rate. Per-verification pricing is easy to compare; what's harder to see upfront is the cost of integration effort, the cost of maintaining compliance as regulations change, and the operational cost of handling verification failures and manual review queues. A lower headline rate with a higher failure/fallback rate can cost more in practice. Ask vendors for real fallback-rate and manual-review-rate data, not just headline accuracy claims.4. Coverage beyond Aadhaar, if you operate outside India or serve NRI/foreign-national customers. Aadhaar-centric KYC software is built for the Indian resident use case. If your institution serves NRIs, foreign nationals, or operates in other markets, ask explicitly how the platform handles non-Aadhaar identity documents (passports, foreign national IDs) and whether that capability is native or requires a separate integration. This is a genuine gap across most Indian KYC software vendor pages, ours included as of today — and one worth pressing on directly in RFPs, since the answer varies a lot between vendors who've actually built for it and vendors who haven't.5. Compliance depth: RBI Master Direction, UIDAI audit checklist, and DPDP Act. KYC software doesn't operate in a compliance vacuum. It needs to satisfy RBI's KYC Master Direction (record-keeping, risk categorization, periodic updation), UIDAI's audit checklist for any Aadhaar-linked processing, and increasingly, the Digital Personal Data Protection (DPDP) Act's consent and data-minimisation requirements. Ask any vendor how their audit trail, consent logging, and data retention policies map to all three — not just RBI.6. Low-code/no-code configurability vs. rigid pre-built flows. Institutions with in-house product teams often want to configure onboarding journeys — reordering steps, adding conditional logic, swapping verification methods by customer segment — without a fresh engineering sprint every time. Whether a KYC software platform offers genuine no-code workflow building, or just customization via vendor professional services, materially changes how fast you can iterate post-launch.<h1 class="heading-node" id="mkkhxutgo">Why Institutions Are Consolidating Toward a Single KYC Software Suite</h1>A pattern worth naming explicitly: most institutions didn't set out to buy "a KYC suite." They bought Aadhaar eKYC from one vendor, added Video KYC from another when RBI's V-CIP norms landed, bolted on a background-verification tool for lending use cases, and built Aadhaar masking in-house or through a fourth integration.The result, a few years in, is a fragmented identity stack: multiple vendor contracts, multiple compliance audits, multiple points of integration failure, and no single, coherent view of a customer's verification history across products.Consolidating onto a single KYC software platform — one that covers CKYC, Aadhaar eKYC, Video KYC, Min-KYC, masking, background verification, and identity microservices under one contract, one dashboard, and one audit trail — isn't just a cost play. It removes the integration overhead of maintaining multiple vendor relationships, gives compliance teams one place to pull audit records from, and lets product teams reuse the same identity infrastructure across new products (lending, cards, neobanking, merchant onboarding) instead of re-procuring for each one.<h1 class="heading-node" id="in1nf1hdi">Where KYC Software Is Headed</h1>A few shifts worth watching over the next few years:<ul class="list-node" id="odv04qucp"><li>Agentic AI in verification workflows. Beyond rules-based fraud flags, AI models that can reason across a full onboarding session — cross-referencing document data, liveness signals, and behavioural patterns — are starting to move from research to production in identity verification.</li><li>Deeper video KYC automation. Fully AI-assisted VKYC sessions (reducing dependency on live human agents for routine cases, while retaining human review for edge cases) are becoming a genuine efficiency lever for high-volume onboarding.</li><li>Convergence with AML and fraud monitoring. KYC software and fraud/AML systems have historically been separate purchases; the operational logic for combining them — shared identity signals, shared risk scoring — is increasingly hard to ignore.</li><li>Government and public-sector adoption. Digital identity verification is expanding well beyond BFSI into direct citizen service delivery, welfare disbursement, and public-sector onboarding — a segment most KYC software vendors aren't built to serve at that scale or compliance bar.</li></ul><h1 class="heading-node" id="7im0ydgyj">Where M2P's KYC Suite Fits</h1>M2P's <a class="link" href="https://m2pfintech.com/kyc-suite/?utm_source=blg&amp;utm_medium=kyc&amp;utm_campaign=suite" target="_blank">KYC Suite</a> is built around the consolidation logic described above — CKYC retrieval, Aadhaar-based AUA/KUA authentication, Video KYC (available on both cloud and on-premise), Min-KYC, Aadhaar masking, instant background verification, and identity microservices, all accessible through a single low-code/no-code platform with one audit trail.It's currently used by 75+ BFSI institutions and 5 state governments, processing 3.8 billion digital identification transactions and 10–13 million verifications a day — a scale that reflects both consumer fintech and public-sector deployment, which is a meaningfully different bar than consumer-only KYC software vendors are built to clear.If you're a bank, NBFC, fintech, or government body evaluating what to consolidate onto — or simply trying to move past the CKYC-vs-eKYC-vs-VKYC confusion this guide opened with — it's worth a closer look at the KYC Suite and a <a class="link" href="https://m2pfintech.com/contact-us/?utm_source=blg&amp;utm_medium=kyc&amp;utm_campaign=suite" target="_blank">conversation with the team</a> about which modules map to your actual onboarding gaps.

M2P's AI-Powered KYC Suite: A Complete Guide to Digital Identity Verification, Compliance, and Onboarding at Scale

The Widest Infrastructure Stack in Banking & Fintech: Every Product, Every AI Agent, One Platform

<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/marketing-cms/m2p-blog/2025/07/frm-blog-banner-04.webp" alt="M2P’s Advanced fraud risk management system for secure and trusted digital financial services." title="" id="lt7ml42w2" width="100%" height="253">Digital transformation has propelled financial services into a new era, offering speed, convenience, and global reach. But this progress brings a parallel surge in financial fraud, threatening the very foundation of trust and stability that underpins the industry.Understanding the Magnitude:&nbsp;<ul class="list-node" id="te5m7z0bz"><li>Illicit fund flows through the global financial system could reach an astonishing USD 4.5 to <a class="link" href="https://secretariat-intl.com/wp-content/uploads/2025/04/Secretariat-Global-Financial-and-Economic-Crime-Outlook-2025.pdf" target="">USD 6 trillion</a> by 2030</li></ul><ul class="list-node" id="kf4imf2r9"><li>AI-driven and deepfake fraud are set to drive a <a class="link" href="https://secretariat-intl.com/wp-content/uploads/2025/04/Secretariat-Global-Financial-and-Economic-Crime-Outlook-2025.pdf" target="">55–60%</a> increase in financial crime incidents by the end of 2025</li></ul><ul class="list-node" id="k9zhbrxoj"><li>Cyber-related fraud alone is expected to surpass <a class="link" href="https://secretariat-intl.com/wp-content/uploads/2025/04/Secretariat-Global-Financial-and-Economic-Crime-Outlook-2025.pdf" target="">USD 100 billion</a> by 2030</li></ul>To safeguard the future of finance, Fraud Risk Management (FRM) emerges as a strategic imperative, not just to combat fraud, but to redefine how we build trust in a digital world.Let’s explore the evolving fraud landscape and how FRM can lead us forward.<h2 class="heading-node" id="5dog23nkj" style="text-align: left">The Fraud Landscape: Key Threats Facing the Global Financial Ecosystem&nbsp;</h2>Financial fraud is evolving rapidly, with attackers leveraging sophisticated tactics and technologies. Among the most pressing threats are:&nbsp;<h3 class="heading-node" id="cxubxvksj" style="text-align: left">1. Identity Theft&nbsp;</h3>Fraudsters steal personal information, such as government IDs, bank credentials, or biometric data, to open accounts, make unauthorized transactions, or impersonate customers. The proliferation of large-scale data breaches and dark web marketplaces has made sensitive data more accessible to criminals than ever before.<h3 class="heading-node" id="1d6oulgjq" style="text-align: left">2. Payment Fraud&nbsp;</h3>Unauthorized transactions often stem from stolen credit/debit card details, hijacked payment accounts, or compromised digital wallets. Payment fraud can occur through card-not-present (CNP) transactions, card skimming, or account hacking.<h3 class="heading-node" id="lc8zuhxck" style="text-align: left">3. Account Takeover&nbsp;</h3>Cybercriminals gain unauthorized access to user accounts, often via phishing, credential stuffing, or social engineering. Once accounts are accessed, they can transfer funds, change account details, or commit further fraud.<h3 class="heading-node" id="plj4wyaqa" style="text-align: left">4. Investment Fraud&nbsp;</h3>Scammers present fake investment opportunities, often promising high, guaranteed returns to trick individuals or businesses into sending money. Ponzi schemes, pump-and-dump scams, and fraudulent ICOs are common examples.<h3 class="heading-node" id="bqw4rmmd0" style="text-align: left">5. Loan and Credit Fraud&nbsp;</h3>Fraudsters use fake or stolen information to obtain loans or credit, harming victims' credit and causing financial losses. This includes synthetic identity fraud and mortgage fraud, where applicants misrepresent income or property details to secure loans.<h3 class="heading-node" id="6cdw50btg" style="text-align: left">6. ACH Fraud&nbsp;</h3>Transactions on the Automated Clearing House (ACH) network are compromised by attackers using business email compromise (BEC) or forged payment instructions to divert funds from direct debits and credits.<h3 class="heading-node" id="ulv75dd2y" style="text-align: left">7. Phishing Scams&nbsp;</h3>Deceptive emails, texts, or calls trick individuals into revealing sensitive information, such as login credentials or payment details. Phishing remains one of the most common entry points for fraud.<h3 class="heading-node" id="cygf1e0dt" style="text-align: left">8. Synthetic Identity Fraud&nbsp;</h3>Fraudsters create entirely new identities using a mix of real and fake information, opening accounts and building credit before defaulting on loans or maxing out credit cards.<h3 class="heading-node" id="kak8m7yz1" style="text-align: left">9. Friendly Fraud&nbsp;</h3>Legitimate customers falsely dispute valid transactions, resulting in chargebacks and losses for merchants and financial institutions.<h3 class="heading-node" id="m70nsw8le" style="text-align: left">10. Internal Fraud&nbsp;</h3>Fraud committed by employees, including misappropriating funds, unauthorized transactions, manipulating records, or abusing access to confidential information, results in financial and reputational damage to organizations.This diverse and evolving threat landscape demands a unified, technology-driven response.&nbsp;<h2 class="heading-node" id="pecoaqt3a" style="text-align: left">A Vision for Global Financial Security: How M2P’s FRM Leads the Way&nbsp;</h2>M2P’s Fraud Risk Management (FRM) system is a comprehensive, cloud-native framework purpose-built to secure the global financial ecosystem. By seamlessly integrating advanced AI, regulatory intelligence, and user-centric design, M2P’s FRM empowers banks, fintechs, and NBFCs to stay ahead of threats, adapt faster, and protect customers with confidence.Here’s how M2P’s FRM is redefining fraud management in the digital era.<h3 class="heading-node" id="220oaozjd" style="text-align: left">1. Risk Management Expertise&nbsp;</h3>M2P embeds risk management expertise into every layer of its FRM solution. Designed to empower cross-functional teams, it equips stakeholders with intuitive, data-driven tools to proactively identify, assess, and mitigate risk long before escalation. From onboarding to servicing, every interaction is guided by embedded fraud resilience.<h3 class="heading-node" id="ifsxjisfn" style="text-align: left">2. Advanced Fraud Detection and Prevention&nbsp;</h3>M2P’s <a class="link" href="https://m2pfintech.com/blog/all-you-need-to-know-about-building-a-robust-fraud-and-risk-management-frm-system/" target="">FRM</a> combines robust rule engines with machine learning models to deliver real-time fraud detection and adaptive prevention strategies.<ul class="list-node" id="tdzusqjck"><li>Data Analysis and Anomaly Detection: Our platform continuously monitors transaction streams, using statistical models and machine learning to flag deviations from expected patterns, such as sudden large transfers or unusual spending spikes.</li></ul><ul class="list-node" id="w9oq99knz"><li>Behavioral Analytics: By tracking user behaviors like device usage, login locations, and transaction timing, the FRM system quickly identifies account takeovers and credential theft—critical in a world where <a class="link" href="https://coinlaw.io/online-banking-usage-statistics/" target="">3.6 billion</a> people use mobile banking.</li></ul><ul class="list-node" id="uk5nd1bkj"><li>Continuous Monitoring: Provides 24/7 surveillance of transactions and accounts, shrinking the window for fraudsters to act.</li></ul><h3 class="heading-node" id="w8n2jodle" style="text-align: left">3. Regulatory and Legal Compliance&nbsp;</h3>M2P simplifies regulatory complexity with baked-in compliance architecture that supports global and local frameworks like GDPR, PCI DSS, and AML/<a class="link" href="https://m2pfintech.com/kyc-suite/" target="">KYC</a>.<ul class="list-node" id="fwtxrmd4w"><li>eKYC &amp; AML Screening: Real-time identity verification and sanctions list screening to ensure compliance without friction.</li></ul><ul class="list-node" id="dwcqma5ki"><li>Automated Reporting &amp; Audit Trails: Every user action and transaction is logged, making it easier to meet audit requirements and manage incident traceability.</li></ul><h3 class="heading-node" id="irxjwq90n" style="text-align: left">4. Cybersecurity Measures&nbsp;</h3>M2P’s FRM training and tools address cyber threats that lead to fraud, such as phishing, malware, and ransomware. The integrated features ensure compliance and fortify institutions against cyber threats that often serve as gateways to financial fraud.<ul class="list-node" id="4jny8o2rw"><li>Multi-factor Authentication (MFA): Enforces layered security, making unauthorized access significantly harder.</li></ul><ul class="list-node" id="w2lxdvs95"><li>Threat Intelligence Integration: Delivers real-time updates on emerging cyber risks, enabling dynamic response to new attack vectors.</li></ul><h3 class="heading-node" id="os57yguml" style="text-align: left">5. Enhancing Operational Resilience&nbsp;</h3>Powerful fraud prevention isn’t just about detection—it starts with building resilient operations. By enforcing segregation of duties, intelligent access controls, and structured incident response protocols, the FRM system helps financial institutions reduce insider fraud and respond swiftly when threats arise. This resilience is essential for maintaining trust, minimizing disruption, and ensuring operational continuity amid evolving risks.<h3 class="heading-node" id="0gaqn2566" style="text-align: left">6. Custom Fraud Detection System&nbsp;</h3>A one-size-fits-all approach doesn’t work against dynamic fraud. Advanced FRM solutions offer the flexibility to design custom risk models that evolve with changing fraud tactics. By integrating data from multiple sources and leveraging machine learning, these systems continuously refine detection capabilities. This unified approach provides a comprehensive view of risk, enabling institutions to respond quickly to new fraud tactics and maintain a strong, adaptive defense against even the most sophisticated schemes.<h3 class="heading-node" id="720dugepn" style="text-align: left">7. Ethical Considerations&nbsp;</h3>Beyond compliance, our FRM system embeds ethical standards and responsible risk management into organizational culture. By promoting transparency, accountability, and whistleblower mechanisms, it deters insider threats and conflicts of interest. This ethical foundation not only reduces internal fraud risk but also builds stakeholder trust and aligns business practices with global standards of integrity, supporting sustainable growth and reputation.<h2 class="heading-node" id="b7cg2ouvx" style="text-align: left">A Future-Ready Approach to Fraud Risk Management&nbsp;</h2>The financial landscape is shifting, and so are the tactics of fraudsters. It’s not just about reacting to fraud—it’s about anticipating it, preventing it, and building trust in a digital-first world.By blending expertise, technology, and collaboration, FRM systems position institutions to lead the global fight against fraud, ensuring that innovation and inclusion go hand in hand with security.Don’t let fraud outpace your innovation.<a class="link" href="https://m2pfintech.com/contact-us/?activeKey=1" target="">Schedule a personalized demo</a> and discover how you can stay steps ahead of financial crime!&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://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>&nbsp;for insightful fintech bytes curated for curious minds like you.

The Rising Threat of Financial Fraud: Why Robust Risk Management is Essential?

<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="383"><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="223"><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="383">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. 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.

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!

Tag: "Kyc Suite (23)"

Product

About

Compliance

Resources