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

<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/marketing-cms/m2p-blog/2026/10/baas-cover-fraud-loss-ownership_2x1.webp" alt="In a BaaS Stack, Whose Fraud Loss Is It, Really?" title="" id="x6grswgvy" width="100%" height="60">A customer gets defrauded on a neobank app. The app was built by a fintech. The fintech doesn't hold a banking license — it operates under a sponsor bank. The sponsor bank doesn't run the technology stack — that's handled by a Banking-as-a-Service (BaaS) platform sitting in between. The card that was compromised was issued through a program manager. The transaction that moved the money ran over a card network and a processor neither the customer nor, often, the fintech's own support team has direct visibility into.Now ask the obvious question: whose fraud loss is this?In a traditional bank, the answer is uncomfortable but at least clear — it's the bank's, full stop, because the bank is the only regulated entity in the relationship and the customer's contract is with no one else. In a BaaS stack, the honest answer is: it depends on the contract, it depends on which party had operational control at the moment of failure, and in a meaningful share of cases, it depends on who blinks first in the dispute. That's not a regulatory framework. That's a negotiation.This is one of the more uncomfortable open questions in modern financial infrastructure, and it's worth examining directly, because every month that it stays unanswered, more transaction volume flows through stacks where the question hasn't been settled.<h2 class="heading-node" id="7lr4v0tra">The Stack: More Parties Than the Customer Ever Sees</h2>A typical BaaS arrangement for a consumer neobank or embedded finance product involves, at minimum:<ul class="list-node" id="qyifg25jq"><li>The sponsor bank — the regulated, licensed entity whose charter underpins the whole arrangement, legally the entity "providing" the financial service</li><li>The BaaS/infrastructure platform — the technology layer that provides APIs, core banking rails, card issuing processing, ledgering, and often the actual fraud and risk tooling</li><li>The program manager or fintech — the brand the customer actually sees and trusts, who designed the product experience and owns the customer relationship</li><li>The card network — Visa, Mastercard, RuPay, or equivalent, which has its own rulebook on chargeback liability</li><li>The processor — handling authorization and settlement, sometimes a separate entity from the BaaS platform</li><li>Downstream service providers — KYC/identity verification vendors, fraud scoring vendors, dispute management vendors — each potentially a different company again</li></ul>A customer onboarding into this product has a relationship with the fintech brand. Legally, their account is with the sponsor bank. Operationally, their transaction data, fraud scoring, and dispute workflows run through the BaaS platform. None of these three — brand, license holder, and infrastructure operator — necessarily has full visibility into what the other two are doing at the moment a fraud event occurs.This isn't a hypothetical structure drawn up for the sake of argument. It's the default architecture of embedded finance today, in India under the NBFC-fintech co-lending and PPI issuance models, in the US under the sponsor-bank model that's powered most neobanks and embedded finance launches of the last decade, and increasingly across Southeast Asia, the GCC, and Africa as digital-first banking licenses proliferate. The question of who owns fraud risk isn't a corner case. It's the central unresolved question of the entire BaaS category.<h2 class="heading-node" id="jr3nukzcb">Why "The Contract Decides" Isn't a Satisfying Answer</h2>The reflexive answer from most legal and commercial teams is that the contracts between these parties allocate liability, and in a narrow sense, that's true — most BaaS and program agreements do contain indemnification clauses, loss-sharing formulas, and service-level commitments that assign financial responsibility for different fraud scenarios.But this answer breaks down in practice for three reasons.First, contracts are written before the fraud happens, and fraud typologies evolve faster than contract renegotiation cycles. A loss-sharing clause drafted around card-not-present fraud risk in 2022 may say nothing coherent about a 2026 scam where the customer is socially engineered into authorizing their own transaction, moved through a mule account the sponsor bank's own compliance team should arguably have flagged, using a device fingerprint the BaaS platform's fraud engine scored as "unusual" but didn't block. Which clause governs that? Often, none cleanly does — and the parties end up negotiating the specific incident rather than applying a pre-agreed formula.Second, contractual liability and operational control frequently don't line up. The sponsor bank may be contractually on the hook for a category of loss, but the fraud model that failed to catch it was built, tuned, and operated entirely by the BaaS platform, with the bank having limited visibility into its thresholds or decisioning logic. Conversely, the fintech brand — the party the customer trusts and who designed the user experience that may have made the scam more or less likely to succeed — often carries little to no direct financial liability at all, because they're not a regulated entity and their contract with the sponsor bank was deliberately structured to limit their exposure. The party with the most contractual liability is not always the party with the most operational ability to have prevented the loss, and that mismatch is exactly why these disputes drag on.Third, regulators have not caught up to the structure. Most financial regulation — in the US, India, the EU, and most of APAC and MEA — was written with a bilateral mental model: one regulated institution, one customer, one relationship. Outsourcing and third-party risk guidelines (RBI's guidelines on outsourcing of financial services, the EBA's guidelines on outsourcing arrangements, the US OCC and FDIC's third-party risk management guidance) all gesture at the idea that the regulated entity remains accountable for outsourced functions — but "remains accountable" is a supervisory statement about who the regulator will come after, not an operational answer to who absorbs the loss, who built the control that failed, or how four or five companies should coordinate incident response in real time during an active fraud event. The regulatory answer and the commercial answer are different documents, written by different people, for different purposes, and they often don't reconcile cleanly.<h2 class="heading-node" id="xpjxeb4hj">A Concrete Scenario Worth Walking Through</h2>Consider a realistic case: a customer of a BaaS-powered neobank falls victim to a phishing scam and is tricked into authorizing a push payment to a mule account. The transaction passes SCA-equivalent authentication because the customer, under the scammer's instruction, approves it themselves. It passes the fraud model's real-time scoring because the device, location, and amount are all consistent with the customer's normal behavior — the only anomaly is the payee, which was flagged as "new" but not blocked, per the risk threshold the BaaS platform configured by default.Now trace the aftermath:<ul class="list-node" id="y0z893cgh"><li>The fintech brand fields the customer's complaint first, because that's the app the customer opened. It has no direct mechanism to reverse the transaction and limited visibility into the fraud model's decisioning.</li><li>The sponsor bank is the regulated entity responsible for the account and, in most jurisdictions, is the party a regulator or ombudsman will ultimately hold accountable for customer treatment — but it likely didn't configure the specific payee-risk threshold that let the transaction through.</li><li>The BaaS platform owns and operates the fraud model, and may have offered a stricter threshold as a configurable option — one the program never enabled, whether due to cost, conversion-rate concerns, or simply not being flagged as a priority during onboarding.</li><li>The card network or payment rail, if involved, has its own dispute rules, which may or may not cover authorized-but-coerced transactions at all — most do not, by design, since the customer genuinely authorized the payment.</li></ul>Every party in this chain has a partially valid claim that the loss isn't "theirs" alone, and every party also had some sliver of ability to have prevented it. This is precisely why these disputes are frequently resolved through negotiation, internal write-offs, or — worst of all — simply left unresolved, with the customer absorbing the loss because no single party accepts full ownership quickly enough to make them whole.<h2 class="heading-node" id="4cb6t7ab8">Three Structural Reasons This Keeps Happening</h2>1. BaaS is multi-party by design, and no single party owns the full transaction lifecycle. This isn't a bug to be patched — it's the entire value proposition of the model. A bank gets distribution without building consumer product. A fintech gets a banking license without becoming a bank. A BaaS platform monetizes infrastructure instead of owning customer relationships. That division of labor is exactly what makes embedded finance commercially viable — but it also means the full transaction lifecycle, end to end, isn't visible to or controlled by any single entity, which is precisely the condition that makes fraud liability so hard to assign cleanly.2. Regulatory frameworks still presume a bilateral relationship. Virtually every consumer protection and fraud liability regulation on the books — whether it's Regulation E in the US, RBI's customer liability circulars in India, or PSD2/PSD3's liability provisions in the EU — was drafted assuming the customer's financial institution is a single, identifiable, directly accountable entity. These frameworks are only slowly being updated to contemplate multi-party technology stacks, and in the meantime, the gap gets filled by private contracts that were never designed to do the job regulation is supposed to do.3. Commercial incentives push liability downstream rather than toward the party best positioned to prevent the loss. In commercial negotiations between banks, BaaS platforms, and fintechs, liability allocation is a point of leverage, not a principled design exercise. The party with the most negotiating power — frequently the sponsor bank, given its licensing position — tends to push liability toward the parties with less leverage, regardless of which party actually controls the systems that could have prevented the fraud. This produces contracts that are internally consistent and legally enforceable, but structurally disconnected from where operational risk actually sits.<h2 class="heading-node" id="v4aptyex9">What a More Defensible Model Looks Like</h2>None of this means the problem is unsolvable — it means it hasn't been treated as a design question with the seriousness it deserves. A few principles point toward a more defensible structure:Liability should be mapped to operational control, stage by stage. Rather than a single blanket liability clause, BaaS agreements need granular control-mapping: who configures authentication thresholds, who owns fraud model tuning, who monitors real-time alerts, who has authority to freeze a suspicious transaction before settlement. Liability for a given failure mode should sit primarily with whoever had the operational ability to prevent it — not whoever has the weakest negotiating position.Shared, real-time fraud visibility has to replace siloed dashboards. A meaningful share of these disputes exist because the bank, the fintech, and the BaaS platform are each looking at partial data after the fact. A fraud and risk management layer built for multi-party visibility — where the sponsor bank, the program manager, and the infrastructure platform see the same transaction-level risk signals in real time, not reconstructed after a complaint — removes much of the ambiguity about who knew what, when.Incident response needs a predefined, cross-party playbook, not an improvised negotiation. When a scam or account takeover is detected, the question of who freezes funds, who notifies the customer, and who initiates recovery shouldn't be settled contract-clause-by-contract-clause during the incident itself. The institutions handling this well have pre-agreed, tested incident response protocols that span all parties in the stack, triggered automatically by defined fraud signals.Regulators and industry bodies need to keep building multi-party liability guidance, not just bilateral frameworks. Some progress is visible — the UK's Confirmation of Payee and APP fraud reimbursement rules under the PSR, and evolving guidance from US regulators following several high-profile bank-fintech partnership failures, both represent early attempts to address multi-party accountability directly. APAC and MEA regulators drafting open banking and BaaS-specific frameworks have a real opportunity to build this in from the start rather than retrofitting it later.<h2 class="heading-node" id="3weu95n7b">The Bottom Line</h2>The honest answer to "who owns fraud risk in a shared BaaS stack" today is: it's split across several parties, unevenly, inconsistently, and in ways that frequently don't match who actually had the ability to prevent the loss. That's not a satisfying answer, but it's the accurate one, and pretending otherwise — treating a signed indemnification clause as if it resolves the operational question — is exactly how these disputes end up taking months to settle while customers wait for resolution.Getting this right isn't primarily a legal exercise. It's an infrastructure exercise. The institutions that will handle this well are the ones that build — or partner for — fraud and risk systems designed from the outset for multi-party visibility and clear, stage-by-stage control mapping, rather than treating shared liability as something to be resolved after the fact through negotiation.If you're a bank, fintech, or program manager operating in a BaaS stack and this question has come up in a real dispute rather than a hypothetical one, it's worth examining whether your fraud and risk infrastructure actually supports shared visibility and clear control attribution — or whether it's quietly assuming the bilateral model that regulation was built around. <a class="link" href="https://m2pfintech.com/frm-aml/?utm_source=blg&amp;utm_medium=frm&amp;utm_campaign=oct" target="_blank">M2P's FRM</a> system is built for exactly this multi-party reality, giving every party in a BaaS stack visibility into the same transaction-level risk signals rather than reconstructing them after a dispute. If this is a live question for your organization, <a class="link" href="https://m2pfintech.com/contact-us/?utm_source=blg&amp;utm_medium=frm&amp;utm_campaign=oct" target="_blank">reach out to M2P</a> to talk through what a clearer ownership model could look like for your stack.

Who Owns Fraud Risk in a Shared Banking-as-a-Service Stack — and Why Nobody's Really Answered This Yet

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

Global Fraud Regulations in 2026: What Compliance Teams Must Know

Navigating the New Wave of Digital Fraud: A Global Perspective on FINMA's Latest Guidelines

<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/marketing-cms/m2p-blog/2026/05/cbt-banner.webp" alt="Core Banking Transformation: How a Leading Indian Digital Bank Scaled Faster with M2P’s Turing Platform" title="" id="l0pfp24a7" width="100%" height="362"> A leading digital‑first bank in India undertook a full transformation of its core banking infrastructure by migrating to M2P Fintech’s <a class="link" href="https://m2pfintech.com/blog/unlock-the-future-of-banking-with-next-gen-core-banking-solutions/" target="">Turing Core Banking Platform</a>. The bank, serving millions of customers across digital and assisted channels, faced escalating challenges from its aging monolithic system:&nbsp;<ul class="list-node" id="8qvkhl3rl"><li>Slow product launches</li></ul><ul class="list-node" id="30dyn3ahi"><li>Lack of real‑time capabilities&nbsp;</li></ul><ul class="list-node" id="fh2wbjtlz"><li>High operational overhead&nbsp;</li></ul><ul class="list-node" id="x0wf0hge9"><li>Limited scalability for modern payments&nbsp;</li></ul><ul class="list-node" id="sp31i7zdn"><li>Fragmented tech stack with multiple vendors&nbsp;</li></ul>To unlock the next phase of growth, the bank selected M2P’s cloud‑native, microservices-driven Turing Core—a unified platform delivering core banking, cards, UPI switch, wallets, reconciliation, compliance workflows and more.&nbsp;The migration—completed in under 90 days for 2.5 million+ customer accounts—not only modernized the bank’s technology foundation but enabled rapid digital product innovation, increased revenue throughput, and strengthened compliance and operational efficiency.&nbsp;&nbsp;<h2 class="heading-node" id="sbjsuoki2" style="text-align: left">Problem Statement&nbsp;</h2>The bank’s legacy core system created multiple structural bottlenecks:&nbsp;<ul class="list-node" id="mp82kwqt7"><li>Monolithic architecture restricted scalability and slowed down innovation</li></ul><ul class="list-node" id="iv17yvwmm"><li>Manual processes and disjointed systems increased dependence on operations teams</li></ul><ul class="list-node" id="66natgt0f"><li>Weak support for modern digital payments, especially real-time rails</li></ul><ul class="list-node" id="3hhswz7kb"><li>High cost of maintaining multiple technology vendors with patchy integrations</li></ul><ul class="list-node" id="tz23jo1l6"><li>Regulatory agility was hampered due to limitations in reporting, audit trails, and API surfaces</li></ul>The bank needed a future-ready core that could scale to millions of customers, unify its product ecosystem, and support both digital-first and assisted channels.&nbsp;&nbsp;<h2 class="heading-node" id="i3nlp7s8z" style="text-align: left">Why M2P Was the Ideal Strategic Partner?</h2>M2P offered a composable, end‑to‑end banking and payments stack—removing the need for multiple vendor integrations and enabling the bank to deploy new capabilities significantly faster.&nbsp;<h4 class="heading-node" id="42jef8iqy">Single Vendor. Complete Banking Stack. Zero Friction.&nbsp;</h4><h4 class="heading-node" id="husdqa49w">M2P’s platform delivered:&nbsp;</h4><ul class="list-node" id="btba5clb0"><li>Turing Core Banking System (cloud-native, microservices-based)&nbsp;</li></ul><ul class="list-node" id="uo00cjbja"><li>UPI switch &amp; payments infrastructure&nbsp;</li></ul><ul class="list-node" id="auhajly6b"><li>Card issuance, management &amp; processing&nbsp;</li></ul><ul class="list-node" id="33dvjsuwp"><li>Wallets / PPIs&nbsp;</li></ul><ul class="list-node" id="q795uhtt7"><li>Inbuilt reconciliation and settlement engine&nbsp;</li></ul><ul class="list-node" id="fx2c0fkn8"><li>Audit, reporting, and regulatory workflows&nbsp;</li></ul><ul class="list-node" id="v871xzze5"><li>API-first architecture for internal and partner channels&nbsp;</li></ul>This drastically reduced integration complexity and unlocked speed, scalability, and compliance-readiness for the bank.<h2 class="heading-node" id="b0l0gwi4i">Technology Advancements Enabled by M2P</h2><h4 class="heading-node" id="5scdl1w37">1. Modern, Cloud-Native Core (Turing CBS)&nbsp;</h4><ul class="list-node" id="c3k9m01j6"><li>Cloud-agnostic deployment&nbsp;</li></ul><ul class="list-node" id="uezucco1a"><li>Highly modular and API-first&nbsp;</li></ul><ul class="list-node" id="qj18ih1pr"><li>Enables rapid feature rollout and configurable products&nbsp;</li></ul><h4 class="heading-node" id="9gkr14sg7" style="text-align: left">2. Large-Scale Migration in &lt; 90 Days&nbsp;</h4><ul class="list-node" id="xpllwxl6h"><li>Over 2.5 million accounts migrated seamlessly&nbsp;</li></ul><ul class="list-node" id="5ndkohqji"><li>Parallel enablement of debit card issuance, wallet services, and core upgrades&nbsp;</li></ul><h4 class="heading-node" id="dgjt3e2os" style="text-align: left">3. Banking-as-a-Service (BaaS) Capabilities&nbsp;</h4><ul class="list-node" id="096cb0kyu"><li>Exposes configurable building blocks&nbsp;</li></ul><ul class="list-node" id="so16iarfc"><li>Enables ecosystem partners, fintechs, and assisted channels to plug in effortlessly&nbsp;</li></ul><h4 class="heading-node" id="37b496915" style="text-align: left">4. UPI &amp; Payments Switch&nbsp;</h4><ul class="list-node" id="rv130huyf"><li>Cloud-native, elastic, and high-availability design&nbsp;</li></ul><ul class="list-node" id="u1o60k65y"><li>NPCI-certified&nbsp;</li></ul><ul class="list-node" id="51onucea9"><li>Reduced total cost of ownership (TCO)&nbsp;</li></ul><h4 class="heading-node" id="lsjoz4xqe" style="text-align: left">5. Compliance, Audit &amp; Operational Controls&nbsp;</h4><ul class="list-node" id="g87v7fvcm"><li>Automated reporting and reconciliation&nbsp;</li></ul><ul class="list-node" id="2305q9n35"><li>Built-in workflows aligned with RBI’s IT governance and outsourcing framework&nbsp;</li></ul><ul class="list-node" id="ax75ieg7a"><li>Strengthened risk and fraud controls</li></ul><h2 class="heading-node" id="8amvhcm38" style="text-align: left">New Capabilities Unlocked After Migration&nbsp;</h2><h3 class="heading-node" id="2jl8x1yk5" style="text-align: left">1. Debit Cards&nbsp;</h3><ul class="list-node" id="o9oz402gi"><li>Instant virtual &amp; physical card issuance&nbsp;</li></ul><ul class="list-node" id="eit5qm3r8"><li>Real-time PIN management&nbsp;</li></ul><ul class="list-node" id="rpp6oveh3"><li>Fee management, card lifecycle, and operations tooling&nbsp;</li></ul><ul class="list-node" id="icgn3wia8"><li>Unified and automated reconciliation&nbsp;</li></ul><ul class="list-node" id="65gqqp1ug"><li>Smooth migration from legacy card system&nbsp;</li></ul><h3 class="heading-node" id="ajtq7hd2s" style="text-align: left">2. UPI &amp; Payments Infrastructure&nbsp;</h3><ul class="list-node" id="429wfhguw"><li>Full-stack UPI (App + TPAP-ready + Switch)&nbsp;</li></ul><ul class="list-node" id="tr3qmamgg"><li>Merchant acquiring capabilities&nbsp;</li></ul><ul class="list-node" id="x3r4rdt15"><li>Intelligent routing for high-volume retail payments&nbsp;</li></ul><h3 class="heading-node" id="a1puo35dn" style="text-align: left">3. Wallets / PPIs&nbsp;</h3><ul class="list-node" id="201k10p3m"><li>Issuance and lifecycle management&nbsp;</li></ul><ul class="list-node" id="1c0mrnalx"><li>Unified control for prepaid programs&nbsp;</li></ul><ul class="list-node" id="piftut0ut"><li>Native support for PPI-on-UPI trends&nbsp;</li></ul><h3 class="heading-node" id="17svd4l0d" style="text-align: left">4. Sweep Accounts&nbsp;</h3><ul class="list-node" id="inmig3c5u"><li>Automated thresholding and sweep rules&nbsp;</li></ul><ul class="list-node" id="g3rbgf4sq"><li>Seamless integration with partner banks&nbsp;</li></ul><ul class="list-node" id="9q24nx1lv"><li>Real-time posting and reconciliation&nbsp;</li></ul><h3 class="heading-node" id="0serjghd2" style="text-align: left">5. Direct Benefit Transfers (DBT)&nbsp;</h3><ul class="list-node" id="k74yuujny"><li>Native support for PFMS, NPCI, and Aadhaar-seeded account flows&nbsp;</li></ul><ul class="list-node" id="yw6duk3se"><li>Strong audit trails and automated exception handling&nbsp;</li></ul><ul class="list-node" id="mn298bpxn"><li>Supports AEPS withdrawals through assisted channels&nbsp;&nbsp;</li></ul><h2 class="heading-node" id="twhocyngd" style="text-align: left">Impact on Growth &amp; Revenue&nbsp;</h2>Within months of migration, the bank saw measurable transformation:&nbsp;<ul class="list-node" id="iy0p7xt4c"><li>Customer base tripled&nbsp;</li></ul><ul class="list-node" id="7mm8h51iw"><li>Deposit base grew 3x&nbsp;</li></ul><ul class="list-node" id="ytxegab0m"><li>1 million+ monthly active UPI users&nbsp;</li></ul><ul class="list-node" id="2n9qi02cs"><li>Significant year-on-year revenue uplift&nbsp;</li></ul>The unified stack accelerated both acquisition and engagement while reducing costs.&nbsp;&nbsp;<h2 class="heading-node" id="0duyunv1y" style="text-align: left">Integration with Digital &amp; Assisted Channels</h2>M2P enabled native integration across the bank’s digital ecosystem:&nbsp;<ul class="list-node" id="j3rbw7au5"><li>Digital Savings Accounts with instant onboarding&nbsp;</li></ul><ul class="list-node" id="5vzswxemg"><li>UPI handle creation &amp; management&nbsp;</li></ul><ul class="list-node" id="cwqq6xvbb"><li>Real-time account management, bill payments, and transfers&nbsp;</li></ul><ul class="list-node" id="brges9022"><li>Assisted channel enablement (AEPS, DMT) through rich APIs&nbsp;</li></ul><ul class="list-node" id="xiswpdxr6"><li>Merchant acquiring using M2P’s payments rails&nbsp;</li></ul>This allowed the bank to deliver a truly unified customer experience across all channels.&nbsp;&nbsp;<h2 class="heading-node" id="iyvgovh4r" style="text-align: left">Enhanced Capabilities for Sweep Accounts &amp; DBT&nbsp;</h2><h3 class="heading-node" id="hp2617j4g" style="text-align: left">Sweep Account Enablement&nbsp;</h3><ul class="list-node" id="tqdz918si"><li>Automated sweep-out workflows&nbsp;</li></ul><ul class="list-node" id="o616hi67d"><li>Consent capture &amp; management&nbsp;</li></ul><ul class="list-node" id="knpocjyh8"><li>Posting, reconciliation, and reporting out-of-the-box&nbsp;</li></ul><ul class="list-node" id="4kusd4s6f"><li>Fully compliant with Payment Bank guidelines&nbsp;</li></ul><h3 class="heading-node" id="zqv7ius2j" style="text-align: left">DBT Enablement&nbsp;</h3><ul class="list-node" id="y3fvw4j5r"><li>Real-time processing via PFMS ↔ NPCI&nbsp;</li></ul><ul class="list-node" id="20n4n285n"><li>Aadhaar-enabled crediting and withdrawals&nbsp;</li></ul><ul class="list-node" id="e485w3juz"><li>Scalable assisted channel operations&nbsp;</li></ul><ul class="list-node" id="54t88vmsf"><li>Faster SLA adherence through integrated workflows</li></ul><h4 class="heading-node" id="55p2z5vf9" style="text-align: left">Client Testimonial&nbsp;</h4>“M2P’s comprehensive banking stack has been the backbone of our transformation journey. Migrating over 2.5 million accounts in under 90 days while launching new digital services was remarkable. The Turing Core has enabled real-time capabilities, seamless scalability, and rapid innovation across our programs.”&nbsp; — CIO, Leading Indian Digital Bank&nbsp;&nbsp;<h2 class="heading-node" id="2slbrnczk" style="text-align: left">Takeaways</h2>By adopting M2P’s Turing Core Banking Platform, the bank transitioned into a digitally agile, compliant, and scalable financial institution. Its transformation stands as a model for modern banks that aim to:&nbsp;<ul class="list-node" id="7vrjuktmt"><li>Scale rapidly&nbsp;</li></ul><ul class="list-node" id="11mhe1a9z"><li>Reduce vendor complexity&nbsp;</li></ul><ul class="list-node" id="zl2vxmlua"><li>Embrace digital-first services&nbsp;</li></ul><ul class="list-node" id="0g1im5433"><li>Launch products faster&nbsp;</li></ul><ul class="list-node" id="zm0pu5viu"><li>Strengthen compliance &amp; real-time operations&nbsp;</li></ul>For banks seeking a future-proof core, <a class="link" href="https://m2pfintech.com/turing-core-banking/?utm_source=blog&amp;utm_medium=cta&amp;utm_campaign=cstdy" target="">M2P’s Turing platform</a> offers unmatched depth, speed, and flexibility—making it the clear choice for next-generation banking.

Core Banking Transformation: How a Leading Indian Digital Bank Scaled Faster with M2P’s Turing Platform

<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/marketing-cms/m2p-blog/2025/12/rbi-mandate-blog-banner-2025-02.webp" alt="RBI April 2026 Mandate, Payment Authentication" title="" id="at2sv37qf" width="100%" height="253">India’s digital payments are scaling at record speed ₹14 lakh crore in monthly transactions reshaping how consumers and businesses interact. This rapid adoption, while fueling convenience and growth, also brings rising risks: fraud losses touched ₹36,000 crore in FY24–25, with SMS OTPs proving increasingly vulnerable. To restore trust, RBI’s new rules respond to this threat with a comprehensive approach emphasizing robust, adaptable authentication to a stronger security benchmark for the future of digital transactions.<blockquote class="block-node" id="0yzd5fdh1">The Reserve Bank of India (RBI) has introduced a landmark directive: dynamic, two factor authentications for all digital payment transactions, effective April 1, 2026. The goal is to move beyond the ‘OTP-only’ mindset and build a smarter, more resilient security layer that protects users without derailing convenience.</blockquote>Let’s dive into the new directives of RBI.<h2 class="heading-node" id="jmlsnp9fx">The New Framework: Balancing Security, Innovation, and Convenience</h2>The RBI's new directions are a deliberate attempt to harmonize three crucial aspects of digital finance: robust security, agile innovation, and seamless customer convenience. India has long relied on two-factor authentication (2FA), primarily through the ubiquitous SMS-based One-Time Password (OTP).The new framework strategically acknowledges this dependency while simultaneously expanding the definition of acceptable authentication methods, moving the payment industry toward more sophisticated and flexible solutions.<h3 class="heading-node" id="inxjalowt">1. Authentication Diversity: Beyond the OTP</h3>The guidelines officially sanction a diverse array of authentication factors, allowing financial institutions to move beyond legacy SMS-OTP and determine which factors best meet their operational and consumer needs. This expanded scope includes:<ul class="list-node" id="cws4xnuxe"><li>Knowledge: Passwords, passphrases, and PINs.</li><li>Possession: Card hardware or software tokens.</li><li>Inherence: Fingerprints or any biometric method (whether device-native or using Aadhaar).</li></ul><h3 class="heading-node" id="ovsv7tvqp">2. The Dynamic 2FA Mandate</h3>While the fundamental requirement for authenticating every digital payment transaction with two or more distinct factors remains, the RBI has introduced a critical stipulation for non-card-present (CNP) transactions: At least one authentication factor must be dynamic, meaning it is unique to the transaction in question.This creation of a Proof-of-Possession mechanism significantly enhances security potential, making it virtually impossible for fraudsters to reuse possession data from previous transactions.<h3 class="heading-node" id="vf8odmbpj">3. Risk-Based Intelligence Takes Center Stage</h3>One of the most transformative features of the new framework is the explicit encouragement of Risk-Based Authentication (RBA). Financial institutions now have the strategic ability to move beyond the minimum 2FA requirement when a higher-risk transaction is observed.Issuers are encouraged to evaluate transactions against a sophisticated set of behavioral and contextual parameters, including:<ul class="list-node" id="av5eevcio"><li>User behavior patterns and historical transaction profiles.</li><li>Transaction location.</li><li>Device-specific attributes and fingerprinting.</li></ul>This risk-based approach ensures minimal friction for low-risk transactions (e.g., through familiar devices or locations), while automatically escalating high-risk attempts to trigger additional verification steps. The RBI has even suggested platforms like Digi Locker as a probable channel for the notification and verification of high-risk transactions.<h3 class="heading-node" id="p8knchuts">4. Strengthening Cross-Border Transaction Security</h3>Recognizing the specific vulnerabilities in the global digital payment ecosystem, the RBI has focused on securing international digital commerce. Card issuers must validate the Additional Factor of Authentication in non-recurring, cross-border Card-Not-Present (CNP) transactions whenever overseas merchants or acquirers request it.Financial institutions have until October 1, 2026, to establish the necessary processes to address all cross-border CNP transactions. This includes registering Bank Identification Numbers (BINs) with card networks, a necessary step that balances the technical challenges of implementation with the imperative of maintaining seamless payment experiences for global customers.<h2 class="heading-node" id="o2zadw1ni">The Need for Intelligent Solutions</h2>With RBI setting the stage for smarter authentication, businesses need solutions that go beyond compliance, solutions that think, adapt, and protect in real time.That’s where M2P’s Risk-Based Authentication Platform comes in.<h3 class="heading-node" id="8xqz7hmeo">Introducing M2P’s Risk-Based Authentication Platform</h3>At M2P, our full-stack solution is designed for banks and financial institutions to go beyond compliance by enabling seamless, secure, and intelligent authentication experiences, starting with full adherence to RBI’s mandate across card-present, card-not-present (ACS/3DS), and non-card transactions. Our stack helps our partners to &nbsp;<ul class="list-node" id="vdq0jszij"><li>Comply with RBI’s mandate across card-present, card-not-present (ACS/3DS), and non-card transactions.</li><li>Orchestrate authentication flows based on transaction risk, user behavior, and device fingerprinting.</li><li>Support all authentication modes—PIN, OTP, biometrics, and behavioral biometrics.</li><li>Deliver consistent experiences across mobile, web, and backend channels</li><li>Integrate easily via SDKs and APIs.</li><li>Scale confidently with a transparent commercial model.</li></ul><h3 class="heading-node" id="2mjkqvvy4">Why does M2P Stands Out?</h3><ul class="list-node" id="rrmcpl2nv"><li>Proven expertise in adaptive authentication and risk-based decisioning.</li><li>Support for multiple authentication modes across knowledge, possession, and inherence.</li><li>Flexibility to define your authentication strategy.</li><li>Consistent customer experience across channels.</li><li>Transparent commercial model.</li></ul><h2 class="heading-node" id="5eghx9d60">Looking Ahead</h2>Leading banks and fintech businesses are partnering with us to not just meet regulatory deadlines but to go beyond compliance by delivering authentication solutions that are secure, seamless, and intelligent.Want to future-proof your authentication strategy using RBA?<a class="link" href="https://m2pfintech.com/contact-us/?activeKey=1&amp;utm_source=RBI%20New%20Directive%20for%20Payment%20Authentication&amp;utm_medium=Risk-Based%20Authentication%20Platform&amp;utm_campaign=RBI%20New%20Directive%20for%20Authentication%20Blog">Schedule a demo</a> with us.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.Source<ol class="list-node" id="rtd28l8fa"><li>https://www.angelone.in/news/economy/upi-dominates-digital-payments-hits-84-share-in-fy25</li><li>https://vajiramandravi.com/current-affairs/surge-in-bank-fraud-value-despite-decline-in-cases-rbi-data-for-fy25/#:~:text=According%20to%20the%20RBI's%20Annual,or%20better%20internal%20control%20measures</li><li>Reserve Bank of India : Latest News Headlines, Videos and Photo Galleries on Reserve Bank of India | Business Standard</li><li>RBI Sets New Digital Payments Authentication Rules, Ends OTP-only Era From April 2026 - BW Businessworld</li><li>RBI mandates stronger two-factor authentication in new guidelines | Finance News - Business Standard</li></ol><hr>

Adapting to RBI’s New Mandate: How M2P’s RBA Platform Enables Intelligent Payment Authentication

<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2025/04/RBI-guidelines-banner.webp" alt="RBI’s Lending Against Gold Collateral Directions 2025: Key Guidelines and Impacts Explained" title="" width="100%" height="253">The Reserve Bank of India (RBI) has released the Draft Directives 2025 on Lending Against Gold Collateral, bringing a much-needed regulatory reset to a sector that’s long operated in silos.&nbsp;Applicable to all regulated entities (REs), including commercial banks, cooperative banks, and NBFCs, these guidelines aim to standardize gold loan practices, tighten controls, and ensure borrower protection. With the gold loan market continuing to expand, particularly in rural and semi-urban India, this framework focuses on improving underwriting, valuation, collateral safety, and end-use transparency.&nbsp;<h2 class="heading-node" id="vrr5rtsz3" style="text-align: justify">Background: Current State of Gold Lending</h2>RBI’s review uncovered widespread irregularities and recurring issues in gold loan practices. Lenders increasingly relied on third-party agents, often valuing gold without the borrower present. Due diligence was inadequate, and end-use monitoring, especially for high-value or income-generating loans, was inconsistent or missing. Recovery practices also lacked transparency, with many borrowers not properly informed during gold auctions.&nbsp;&nbsp;Additionally, the enforcement of the 75% Loan-to-Value (LTV) cap was uneven, and risk weights were incorrectly applied. These gaps highlighted the need for a unified regulatory framework, one that ensures borrower protection, operational discipline, and standardization across the gold loan ecosystem.<h2 class="heading-node" id="bqnbvf39j" style="text-align: justify">Key Proposals in the RBI's Draft Guidelines</h2><ol class="list-node" id="jg10nqvve"><li>Standardized Gold ValuationLenders must use a transparent and uniform method for valuing pledged gold, with valuation done by certified personnel and subject to periodic audits.</li><li>Loan-to-Value (LTV) Cap and TenureThe draft reiterates the LTV cap of 75%, ensuring responsible lending. For bullet repayment loans (where the entire principal is repaid at maturity), the maximum tenure is proposed at 12 months.&nbsp;</li><li>Auction and Recovery NormsIn the event of a default, auctions must be conducted in a transparent manner, with adequate borrower notification. Any surplus amount post-auction must be refunded to the borrower.&nbsp;</li><li>Disclosure and DocumentationLenders must clearly disclose the terms, interest rates, processing fees, and auction terms to borrowers upfront. Loan sanction letters should include the weight, purity, and valuation of gold accepted.&nbsp;</li><li>KYC and Purity ChecksMandatory KYC compliance and enhanced due diligence for high-value loans. Purity checks must be documented and auditable.&nbsp;</li><li>Role of NBFCs and BanksThe guidelines apply uniformly across banks and NBFCs, with specific emphasis on curbing some of the lending practices followed by banks and gold-loan NBFCs.</li></ol><h2 class="heading-node" id="9q769ync5" style="text-align: justify">Impact on Borrowers and Lenders</h2>For Borrowers&nbsp;<ol class="list-node" id="gwaig6zsm"><li>Enhanced Transparency: Borrowers will benefit from clearer loan terms and standardized practices across lenders, ensuring consistent treatment.&nbsp;</li><li>End-use Monitoring: Lenders will verify the end-use of funds for income-generating loans and high-value consumption loans, preventing misuse.&nbsp;</li><li>Secure Collateral Handling: Collateral must be stored securely, and lenders face penalties for delays in returning collateral after repayment.&nbsp;</li><li>Prompt Collateral Return: Collateral must be returned within 7 working days after full repayment, with a ₹5,000/day penalty for delays.&nbsp;</li></ol>For Lenders&nbsp;<ol class="list-node" id="yuer044c1"><li>Enhanced Risk Management: Lenders must implement stricter risk management policies, including single-borrower and sectoral caps on gold loan portfolios. This includes monitoring the end-use of funds, especially for income-generating loans.&nbsp;</li><li>Standardized Gold Valuation: Lenders must establish uniform procedures for assessing the weight and purity of gold collateral, ensuring transparency and consistency across all branches.&nbsp;</li><li>Operational Adjustments: Lenders need to adapt their systems to manage LTV ratios in real-time, track multiple loans, and enforce auction protocols efficiently to avoid non-compliance penalties.</li><li>Financial Implications: Non-compliance could result in financial penalties, provisioning burdens, or reputational damage. The introduction of a uniform 75% LTV ratio may also impact NBFCs that previously used higher ratios, leading to stock price declines for some gold loan companies.</li></ol><h2 class="heading-node" id="07g847hhk" style="text-align: justify">How Finflux by M2P LMS Enables Effortless Compliance &amp; Lending Efficiency</h2><ol class="list-node" id="jh8hrcjxv"><li>Smart LTV Monitoring and Alerts: Finflux by M2P’s LMS is built to automatically calculate and monitor LTV ratios&nbsp;and customizable purity adjustment logic. Breach alerts and auto-flagging ensure lenders stay within RBI thresholds.</li><li>Automated Valuation Workflows: Gold purity inputs, market rate APIs, and gemstone exclusions are all baked into the valuation module, ensuring fair and compliant gold pricing for every loan.&nbsp;</li><li>Bullet Loan Controls: Finflux’s LMS allows lenders to configure product rules based on tenure, loan amount, and end-use. This makes it easy to ensure that bullet repayment loans are capped as per regulatory guidelines.&nbsp;</li><li>Borrower Due Diligence &amp; Documentation: Built-in KYC workflows, end-use declarations, and support for digital documentation allow lenders to maintain audit-ready records without the paperwork headache.&nbsp;</li><li>Renewal &amp; Top-Up Governance: The LMS mandates fresh appraisals, formal requests, and borrower eligibility checks before allowing renewals or top-ups, fully aligned with the latest RBI rules.&nbsp;</li><li>Unclaimed Collateral Tracking: Automated reminders and borrower/legal heir tagging ensure that no gold sits idle beyond two years without follow-up.&nbsp;</li><li>Granular Reporting &amp; Disclosures: Generate RBI-compliant reports covering loan books, LTV ratios, NPAs, and silver/gold collateral split, ensuring accurate disclosures and audit readiness.</li></ol><h2 class="heading-node" id="c9forklek" style="text-align: justify">Future-Ready Lending Begins with the Right Infrastructure</h2>As regulators push for greater accountability and transparency, lenders must embrace intelligent systems that can adapt to compliance, not just support lending.&nbsp; &nbsp; At Finflux by M2P, we’re building the tools that help lenders not just comply but grow responsibly. Whether you’re a bank, NBFC, or cooperative institution, our LMS is engineered to help you navigate the complexities of gold-backed lending with speed, clarity, and confidence.&nbsp; &nbsp; Want to see how Finflux by M2P can future proof your gold loan operations?<a class="link" href="https://m2pfintech.com/contact-us/?utm_source=lending_blog">Get in touch</a> with us today.<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.

Navigating RBI’s 2025 Gold Loan Directives with our Comprehensive Loan Management System

<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="612">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="612">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="612">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="612">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="612"><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.

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