Global Fintech 4finance Deploys FICO AML and KYC Solution across 10 Countries in Nine Months
Chennai, India — January 30, 2018 4finance Group, Europe’s largest online and mobile consumer lender, has deployed FICO® TONBELLER® Siron®solutions for anti-money laundering (AML) and know your customer (KYC) compliance across 10 countries and 20 back-office systems in just nine months. The cloud-based FICO solutions are delivering audit-verified compliance with global and regional regulations while maintaining 4finance’s promise to issue customers a loan in 15 minutes. For these achievements, 4finance Group has won a 2017 FICO Decisions Award for Regulatory Compliance.
“Workingwith FICO, we created an AML/KYC framework that bolstered our compliancewithout compromising on speed and our promise to customers,” said AndisGrandāns, AML Officer at 4finance Group. “In fact, fewer than 0.5 percentof customers applying for their first loan feel any impact on the speed oftheir loan being disbursed. As proof of our success, we have already undergonea regulatory audit on our AML/KYC processes and received a clean bill ofhealth.”
4financeGroup is a global digital finance business that combines the discipline of arigorous, highly regulated consumer lender with the capabilities and drive of afast-paced, data-driven, borrower-focused fintech. It took on this projectto ensure compliance with new requirements of the 4th European UnionAML Directive in online consumer lending.
“Ourchallenge was to find an AML compliance solution that was flexible in the wayit could be integrated, but absolutely robust when it came to compliancecapabilities,” said Grandāns. “Our speed to market and our ability to deliverfunds to our customers quickly are fundamental to our business. We needed toensure compliance in a way that did not compromise our brand promise ofdelivering fast funds to creditworthy people. We chose FICO TONBELLER becauseit offered us the fastest deployment, cloud for expansion to new markets, andthe most powerful capabilities for detecting criminal activity.”
Scalabilitywas critical for 4finance. In fact, after going live with the first 10countries, 4finance is implementing the solutions in two further countries andintegrating five more products from an acquired company, Friendly FinanceGroup.
“Designingthe solution for the first country, we sought to create an architecture thatwould allow easy customization for the next countries while keeping the coreunchanged,” said Grandāns. “A quick rollout from country to country was a keyrequirement, which is why we chose to deploy in the cloud. Using amulti-tenant option, we could quickly replicate common features from onecountry to another and at the same time be able to adapt the solution to thespecifics of local regulations.”
4financeGroup uses two modules of the FICO® TONBELLER® SIRON® Anti-FinancialCrime Solutions suite:
- SIRON® KYC screens customers against various watch lists (provided by Dow Jones), including sanction lists, special interest persons and politically exposed persons. Screening is performed when a customer applies for the first loan, and in a nightly batch that checks the whole customer database against any changes in the watch lists.
- SIRON® AML identifies suspicious customer behavior patterns. Each night all new transactions and the whole data set is run against the pre-set business rules, generating alerts to work with. 4finance monitors abnormal single transactions, aggregated transactions and scenario combinations.
“4finance impressed me with the complexity of theircompliance project,” said Giorgi Alibegashvili, strategic projectmanager at TBC Bank, one of this year’s FICO Decisions Awards judges and a2016 award winner. “The cloud implementation is impressive, and the connectionto multiple back-office systems is very tough. The fact that their regulatoryaudit didn’t produce any recommendations for improvement demonstrates what astrong approach they have built.”
“4financeGroup represent the best of the new wave of fintechs that are disruptingfinancial services markets worldwide,” said Torsten Mayer, vicepresident for compliance solutions at FICO. “They take their responsibilityto stop financial crime, and the criminal activities it funds, very seriously.”
About theFICO Decisions Awards
The FICODecisions Awards recognize organizations that are achieving remarkable successusing FICO solutions. A panel of independent judges with deep industryexpertise evaluates nominations based upon measureable improvement in keymetrics; demonstrated use of best practices; project scale, depth and breadth;and innovative uses of technology. The 2017 judges are:
- Giorgi Alibegashvili, Strategic Project Manager, TBC Bank (2016 award winner
- Julie Conroy, Research Director, Aite Group
- Douglas Gray, Director, Enterprise Data & Analytics, Southwest Airlines (2016 winner)
- Joy Macknight, Transaction Banking and Technology Editor, The Banker
- Daniel Mayo, Chief Analyst, Financial Services Technology, Ovum
The winnersof the FICO Decisions Awards will be spotlighted at FICO World 2018, theDecisions Conference, April 16-19 in Miami Beach, Florida.