Demand deposit accounts have historically been opened by consumers at financial institutions (FIs) based on a series of simple identity and fraud checks. With growing government and regulatory oversight, FIs are being asked to perform compliance and authentication checks to meet requirements of the Bank Secrecy Act (Anti-Money Laundering) and USA PATRIOT Act (Know Your Customer). With continuing growth in fraudulent transactions, retail banks have added additional layers of risk and fraud checking.
Mercator Advisory Group’s latest research report, DDA Underwriting and Account Opening Process: Today and Tomorrow, delves into the questions troubling debit business, risk, and compliance managers. Debit fraud is rapidly increasing. At the same time, regulators are becoming more sensitive to retail bankers’ abilities to monitor and prevent identity theft, block suspicious transactions, and block dangerous individuals from opening bank accounts to move funds to others through that account. Alternative online, real-time data and predictive modeling solutions are being developed.
The report provides a look into Mercator Advisory Group’s primary data on U.S. consumers’ interest in digital channels for financial product information and new account application preferences. The report also provides an overview of DDA account application experiences in the past and present and trends for the future, a look at the DDA new account application work flow including traditional third-party data sources and alternative data vendor options, and a deeper dive into some of the thought leaders among the vendors from a risk and compliance perspective.
2. 2014 Mercator Advisory Group
Demand deposit accounts have historically been opened by consumers at financial
institutions (FIs) based on a series of simple identity and fraud checks. With growing
government and regulatory oversight, FIs are being asked to perform compliance
and authentication checks to meet requirements of the Bank Secrecy Act (Anti-
Money Laundering) and USA PATRIOT Act (Know Your Customer). With continuing
growth in fraudulent transactions, retail banks have added additional layers of risk
and fraud checking.
Mercator Advisory Group’s latest research report, DDA Underwriting and Account
Opening Process: Today and Tomorrow, delves into the questions troubling debit
business, risk, and compliance managers. Debit fraud is rapidly increasing. At the
same time, regulators are becoming more sensitive to retail bankers’ abilities to
monitor and prevent identity theft, block suspicious transactions, and block
dangerous individuals from opening bank accounts to move funds to others through
that account. Alternative online, real-time data and predictive modeling solutions are
being developed.
DDA Underwriting and Account Opening Process:
Today and Tomorrow
3. 2014 Mercator Advisory Group
The report provides a look into Mercator Advisory Group’s primary data on
U.S. consumers’ interest in digital channels for financial product information
and new account application preferences. The report also provides an
overview of DDA account application experiences in the past and present
and trends for the future, a look at the DDA new account application work
flow including traditional third-party data sources and alternative data
vendor options, and a deeper dive into some of the thought leaders among
the vendors from a risk and compliance perspective.
DDA Underwriting and Account Opening Process:
Today and Tomorrow
4. 2014 Mercator Advisory Group
“The process of new account application, review, and approval is
very much in transition, with smarter, more efficient tools in
development, and integration between banking channels no
longer a dream but almost within grasp,” comments Ron
Mazursky, Director, Debit Advisory Service at Mercator
Advisory Group and author of the report.
Ron Mazursky
Director
Debit Advisory Service
Mercator Advisory Group
5. 2014 Mercator Advisory Group
• Mercator Advisory Group survey data on the percentage of U.S.
consumers by demographic segment that have applied for bank
accounts online
• Description of today’s automated process of DDA account
application, including compliance checks and risk analysis being
done in real time online
• Integration of predictive analytics into the new DDA account
underwriting process to replace risk checks based purely on
eliminations based on matches to negative files
• The role of cross-selling in the new account acquisition process,
once the individual has been approved for the DDA account
• Profiles of solution providers and their products in this area
Highlights of this Research Report
7. About the Full Research Report
2014 Mercator Advisory Group
This Research Report has 23 pages and 9 exhibits.
Companies mentioned in this Research Note include: ACI Worldwide, Andera
(Bottomline Technologies), Capital One Bank, ChexSystems, Early Warning Services,
Equifax, FICO, FIS, ID Analytics, IDology, Innovis, LexisNexis, Jumio, Mitek Systems, and
Zoot Enterprises.
Members of Mercator Advisory Group’s Debit Advisory Service have access to these
reports as well as the upcoming research for the year ahead, presentations, analyst
access, and other membership benefits.
For more information and media inquiries, please call Mercator Advisory Group's main line:
(781) 419-1700, send e-mail to info@mercatoradvisorygroup.com.
For free industry news, opinions, research, company information and more visit us at
www.PaymentsJournal.com.
Follow us on Twitter @ http://twitter.com/MercatorAdvisor.
8. About Mercator Advisory Group
Mercator Advisory Group is the leading independent research and advisory
services firm exclusively focused on the payments and banking industries. We
deliver pragmatic and timely research and advice designed to help our clients
uncover the most lucrative opportunities to maximize revenue growth and
contain costs.
Our clients range from the world's largest payment issuers, acquirers,
processors, merchants and associations to leading technology providers and
investors. Mercator Advisory Group is also the publisher of the online
payments and banking news and information portal PaymentsJournal.com.
2014 Mercator Advisory Group
