The document discusses the verification services platform (VSP) developed by Customers Bank, which automates various risk management processes involving identity verification and compliance. It highlights significant investment trends in the identity management sector and recent fundraising activities of competitors, emphasizing rapid growth and the competitive landscape. Additionally, VSP aggregates multiple data sources to enhance customer onboarding and fraud detection, illustrating its robust and innovative applications in fintech partnerships.

1. Verification Services Platform
Dan Armstrong (darmstrong@customersbank.com)
June 07, 2022

2. Platform Peers/Competition
“This year has already seen $3.2 billion in
venture dollars go into the identity
management space—about 2.5x the amount of
investment from last year’s $1.3 billion, which
was already a record.”
(Crunchbase News Dec 7, 2021)

3. Recent Fundraising Activities of Peers/Competition
Raised $100M in Series C funding on a
$1.35B valuation; bringing total funding
to >$150M since 2015
September 2021
Raised $100M on a $1.3B valuation;
raised another $96M in other rounds to-
date
March 2021
Raised another $450M in Series E
funding on a $4.5B valuation; $649.6M
total funding to-date
November 2021
Raised $200M in Series B funding on a
$1.25B valuation, revenues grew 6x
over 2021
December 2021
Raised $535M in Series A funding on a
$2.2B pre-money valuation for the
password startup
June 2021
Raised $349M in Series D funding on a
$1.75B valuation for the online
verification company
June 2021
Raised $34M of Series A function on a
$300M valuation for the
KYC/Fraud/SAR company
July 2021
Raised $150M from Grant Hill Partners
bringing total funding to $205.4M to-
date
March 2021
Raised $70M in Series B funding,
bringing total funding to $84M for the
fraud/AI/KYC company
August 2021
Raised $47M in Series A funding
bringing total funding to $52M for the
distributed KYC/Fraud company.
March 2021

4. What is the Verification Services Platform (“VSP”)?
• VSP Aggregates Internal & Vendor Data Sources:
• VSP Automates Digital Account Opening Processes – Deposits & Loans
• VSP Automates Compliance, Due Diligence, Fraud Detection & Demographic Tasks
• VSP Automates Manual Risk Processes
• VSP Powers Fintech Partners & Maintains CUBI’s Risk Posture
Customers Bank’s cloud-based Risk Automation Platform
Fraud KYC & KYB
Watchlists, Sanctions
Screening
Consumer & Business
Credit Risk & Scoring
Risk & Transaction
Limits
Applicant/Customer
Demographic Profiles
Internally-Generated
Data, Cross-Vendor
Scoring

5. (evaluation)
(evaluation)
The VSP “Risk Automation Hub”
Third-Party Data Sources Products, Processes, Channels or Partners
SMB.UX
4 Scoring Models (2022-)
6 Scoring Models (2021-)
1 Scoring Model (2019-)
5 Scoring Models (2022-)
1 Scoring Model (2021-)
2 Scoring Models (2020-2022)
4 Scoring Models (2022-)
2 Scoring Models (Q2 2022-)
2 Scoring Models (2019-)
FP&I 4 Scoring Models (2019-)
4 Scoring Models (2022-)
2 Scoring Models (2022-)
Single
API
Realtime APIs to all required data
sources scores individuals,
businesses, devices, location.
 BSA Compliance / Approval
 Customer Due Diligence
 Fraud & Credit Risk
 Enterprise Process Automation
Customized models, alerts, watchlists,
review standards, thresholds or risk
tolerance.
 Any Delivery Channel (online, kiosk, in-
branch, mobile, tablet, relationship
managers)
 Powers Embedded Finance Partnerships
VSP Data, Third-Party Data, Scoring,
Alerting, Investigations, Compliance,
Risk, Digital Banking Origination Support.
 Trends, A/B Testing
 Reporting, Marketing
 Datalake, AI & ML
 Open API
3 Scoring Models (2022-)

6. Consumer Digital Savings
Account
Example of Using “Ingredients” to Build Channel Distribution “Recipes”
Third-Party Data Sources Products, Processes, Channels or Partners

7. Example of Using “Ingredients” to Build Channel Distribution “Recipes”
Third-Party Data Sources Products, Processes, Channels or Partners
Commercial Bundles with
Checking & $100,000
Term Loan

8. Microsoft Azure (vspinsight.net)
High-Level Platform Overview
VSP Applications
(67)
Dashboard
Scoring API
Users, Platforms, Processes
& Fintech Partners
Microsoft Azure ASE Environments, Data Access Components, DevOps
3rd Party Data Source Integrations

9. VSP Dashboard & User Applications
VSP Individual Scoring Events VSP Dashboard, Trends & Reporting
VSP Mapping Workshop VSP Report Generator

10. VSP Data Sources
Consumer Identity Records
LexisNexis®
• InstantID® – Verifies personal information such as name, consumer address,
phone, identification document, date of birth and social security or tax
identification number; as well as watchlist screening like OFAC, PEP. 
Fraud
LexisNexis®
• FraudPoint® – Fraud score to reduce the risk associated with identity fraud
(stolen identities, manipulated or synthetic identities, friendly/vulnerable victim
fraud, or suspicious behavior with presented credentials. 
LexisNexis®
• Emailage® – Email risk scoring based on reported fraud with email addresses,
IP address, risky domains and ISPs, velocity, geolocation, access networks,
and social media profile presence. 
Phone Data
Early Warning™ • RealTime Deposit Chek w/Account Ownership Authentication – Account
ownership and status checks for DDAs and SAs using Early Warning’s data
contribution network. 
Experian™ • PreciseID ® – Identity verification risk identification for identity theft, synthetic
identity and first party fraud, along with tools that facilitate confirmation when
risks are detected. 
Knowledge-Based Authentication
Experian™ • Knowledge IQSM
– Configurable identity-based risk scoring with out-of-wallet
questions for applicants or step-up authentication scenarios and can include
custom questions. 
LexisNexis®
• InstantID Q&A® – Knowledge-based answers to questions with configurable
question and answer rules, and leverages more than traditional, credit-header
based information. 
LexisNexis®
• Consumer Bankruptcies, Foreclosures, Judgements, Liens – Real-time inquiry
into all bankruptcies, foreclosures, judgments, liens, as well as property
ownership status.  2022
Consumer Credit & Risk
Experian™ • VantageScore V3® – Tri-bureau consumer credit score (Experian, TransUnion
and Equifax) for consumer lending risk scoring, including Adverse Action
Reasons and risk indicators. 
Experian™ • FICO V2® – Experian-provided FICO® consumer credit score, including
Adverse Action Reasons and risk indicators. 
LexisNexis® • RiskView™ – LexisNexis’s alternative credit data product, with models focused
on performance for credit cards, personal loans, auto lending and
telecommunications scenarios. 
Twilio • Lookup – Realtime delivery of phone number data, mobile/landline/VOIP
status, network provider and number resolution details. 
Boku • Data Match – Delivery of data attributes match scoring for phone number
ownership that covers name, address and date of birth, based upon wireless
carrier information and other data sources. 
LexisNexis®
• InstantID Business® – Identity verification for US-based businesses, which
includes government registrations, bureau, public records verification, as well
as scores the linkage between authorized representatives of the business. 
LexisNexis®
• UCC Filings – Real-time inquiry into current and historical UCC filings tied to
business entities.  2022
LexisNexis®
• Commercial Bankruptcy, Judgements & Liens – Real-time inquiry into all
business bankruptcies, foreclosures, judgments, liens, as well as other risk
indicators.  2022
Experian™ • Business ProfilePlus ReportSM
– Business profile and validation of business
information, corporate registration, industry, tax liens and judgements, potential
bankruptcies, and UCC details.  2022
FICO®
• Liquid Credit / Small Business Scoring Service (SBSS)SM
7 – Small business
risk assessment scoring, including business and consumer risk indicators, soft
pulls and rescoring capabilities. Models: Commercial Term Loan, Line of
Credit, Startup, Leasing, Commercial Card. 
Experian™ • Intelliscore PlusSM
– Premier business credit tool that assess risk quickly and
reduce slow-pay and write-offs, all while improving efficiency with score
segmentation 
Other Data Sources
Google • Google Geolocation / Google Maps – Google APIs for geolocation based upon
IP address, mapping capabilities, plus VSP haversine formal calculations. 
Mailgun • Email – SMTP email services for alerting, BSA processes, consumer
messaging and Adverse Action Notices. 
Business Credit Records
Business Identity Records
NCFTA® • ListServIntel – Realtime data feeds (3) from the public-private partnership with
the FBI, Secret Service, IRS and US Department of Treasury for reported fraud
in banking, ecommerce and cyber/network attacks. 
Device and Behavior Authentication
MaxMind®
• GeoIP2 Precision Insight / City / Country – Geolocation resolution using IP
address with varying degrees of information returned, incl. anonymizer type,
static IP scoring, average income and population density. 
Experian™ • FraudNet – Precision device and behavior scoring for account opening and
account takeover that covers geolocation, velocity, device manipulation and
settings, risky countries, patented mismatch fraud detection tools. 
FIS • QualiFile® – Consumer due diligence tool that leverages ChexSystems ®
proprietary database, external public records and credit bureau data to provide
an overall consumer risk score and risk indicators. 
SAM.gov • Exclusions Check – Realtime check for U.S. Government GSA award
exclusions. 
Twilio • SMS – SMS services for alerting, BSA processes, consumer messaging, SMS
OTP and SMS OTP validation, as well as other step-up authentication use
cases. 
';--have i been pwned? • Email & Phone – Data breach reporting database that provides detailed hits on
email addresses and phone numbers involved in data breaches world-wide. 
Experian™ • CrossCore® – Integration to Experian’s integrated, digital identity and fraud
platform for orchestrating decisions that can leverage multiple Experian-offered
data sources. 
VSP • Risky Countries List – Active list of risky countries for geolocation, configurable
per-tenant. 
VSP • Risky Carriers List – Active list of risky fixed and wireless for negative carrier
scoring rules that catch spoofed carrier profiles in other vendors, configurable
per-tenant. 
VSP • Risky Domains List – Active list of risky domains for negative email scoring
rules, configurable per-tenant. 
VSP • Disallow List – A universal “Blacklist” maintained by the VSP of confirmed
fraudulent credentials (2015-2022) across all consumer and business
portfolios, SBA PPP loan programs, etc. Configurable per tenant. 
VSP • Velocity Lists – Velocity alerting and scoring stops based upon velocity of
scoring attempts, configurable per-scoring model and per-tenant. 
IPQualityScore • Proxy/VPN Detection – IP reputation, fraud score, mail spam, bot and abusee
velocity scoring; device fingerprint; malicious URLs; phone number and email
validation. 

11. Our Implementation Models
1. VSP handles complete E2E risk processes.
 MaxMyInterest Savings Account Applications
 Digital Business Checking Account Applications
 Small Business Deposits & Loans
2. VSP plays a role automating other platform processes.
 Digital SBA Lending – SBA & underwriting tasks carried out by partner
 BMTX, Inc. Checking Account Applications – U.S. DoE rules, so BMTX documentary review based on VSP scoring
3. VSP used to automate specific tasks.
 Treasury CAM process – uses a single vendor business risk score – via API from Salesforce
 Small Business Lending Group KYC/KYB/Sanctions Screening tasks – via API from their platform
4. VSP used on an ad hoc basis.
 Daily external account ownership scoring – via batch files from our core
 Daily Non-VSP digital channel re-scoring – via batch files from our core
 Adding authorized signers to business checking accounts
 Fraud Investigations

12. 0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
900,000
Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022
VSPVolumes
CUBI Consumer CUBI Business CUBI SBALending BMTX, Inc.
VSP Usage
• 2019
 Consumer KYC, Sanctions Screening for Deposits
 External Account Ownership & Batch Processes
• 2020
 Digital Commercial Checking (businesses/signers)
 Ad Hoc Scoring (adding Relationship Managers)
 Begin Fintech Integrations
• 2021
 SBA PPP, PLP Loans (KYB/KYC)
 Commercial Risk Process Automation (Treasury CAM, authorized
signers, Secretary of State systems, etc.)
• 2022
 Automated Scoring for Commercial Checking Account & Treasury
Products
 Auto-Underwriting Commercial Term Loans, Lines of Credit
 KYB/KYC/Fraud Checks for Customers Bank Small Business
Loans
 SBA 7(a) Service Expansion (including SAM.gov)
CUBI Digital Banking
Group
CUBI BSA Group
CUBI Small Business
Lending Group (Q2
2022)
CUBI Fraud Group
CUBI Relationship
Managers
SMB - $50k LOC, $100k
Term Loans
CUBI nCino Treasury
CAMs Process
CUBI Tech-Enabled
Commercial Lending
BMTX, Inc.
Fintech Deposit
Partnerships
Fintech Partnership
SBA 7(a) Lending
Fintech Partnership
SBA 7(a) Lending

13. How we see the VSP
Own Data vs. Data Aggregation
Own
Data
Data
Aggregators
KYC/KYB, Identity, BSA Device, Location, Velocity, Fraud
Single Product vs. Platform Plays
Single
Product
Platform
KYC/KYB, Identity, BSA Device, Location, Velocity, Fraud
Pre-Baked vs. Customized Models
KYC/KYB, Identity, BSA Device, Location, Velocity, Fraud
Pre-Packaged
Customized
TMX
CrossCore
OAC
TMX
CrossCore
OAC
TMX
CrossCore
OAC

14. Own Data vs. Data Aggregation
Own
Data
Data
Aggregators
KYC/KYB, Identity, BSA Device, Location, Velocity, Fraud
TMX
CrossCore
OAC
How we see the VSP
Single Product vs. Platform Plays
Single
Product
Platform
KYC/KYB, Identity, BSA Device, Location, Velocity, Fraud
Pre-Baked vs. Customized Models
KYC/KYB, Identity, BSA Device, Location, Velocity, Fraud
Pre-Packaged
Customized
TMX
CrossCore
OAC
TMX
CrossCore
OAC
Proprietary VSP Scoring
Rules
+
Customers Have the
Option to Use VSP for
Single Product Use
Cases
+
Banks Can Use the
Tested “Out of the Box”
VSP Models
+

15. What did we learn?
“Built by a Bank, for Banks”
• Innovation is not limited to big banks.
 With the right teams and leadership, mid-sized financial
institutions can truly innovate, develop unique and
valuable solutions.
 Support from operational groups is key. Subject matter
and process experts can streamline development
considerably.
• Innovation must be driven top-down.
 Senior management leading and protecting digital
transformation and innovation efforts pays off.
 Re-thinking the way risk is carried out in a bank can lead
to substantial cost and time savings, and opportunity.
• Focus on building blocks.
 Don’t try to boil the ocean.
 Creation of re-usable components, cloud platforms and
building for sustainability pays off.