Enterprise RDC Risk Management

Transcription

1 Enterprise RDC Risk Management Ken Gross, Regions Bank Mary Hockridge, Mobile Strategy Partners September 26, 2013 Be sure to tweet about the #RDCSummit and

2 Agenda Industry Perspective on RDC Risk An Enterprise Challenge Best Practice Approach Regions Case Study: Enterprise RDC Risk Project Guiding Principles Approach Results 2

3 RDC An Enterprise Solution RDC, which began as a business-only product, has evolved to become a mainstream deposit channel serving consumers as well as business customers Significant growth in the number of RDC users, together with expansion of the service to additional channels, adds complexity to RDC risk management, compliance & customer provisioning 3

4 The Enterprise RDC Risk Management Challenge Risk management strategy and tactics vary by market customer o Regulatory differences between consumer and business o Transaction amounts and risk exposure o Customer and transaction volumes o Different RDC solution vendors, service options and scanner types Resulting in the following challenges: Business RDC involves manual customer due diligence and manual customer set up Consumer RDC relies on automated decisions and controls; which are often simplistic and tend to be one size fits all Market Customer Eligibility & Due Diligence Establish Limits RDC Customer Set Up RDC Deposit Review Day 2+ Deposit Fraud Monitoring 1. Large Corporate Manual Manual Manual Manual Suspect Review 2. Business Banking Manual Manual Manual Manual Suspect Review 3. Retail Consumer & Small Business Automated Automated Automated Limited Suspect Review 4

5 Getting to Enterprise RDC Customer profile and deposit analytics have been and continue to be the cornerstone of deposit fraud management. Leveraging core customer analytics as an enterprise service for RDC risk management and compliance offers the following benefits: Scalability Reduction in manual steps Stronger Risk Management & Compliance Continuous KYC, not just at set up Consist implementation of policies Market Success Increase deposit limits for low risk customers, encouraging usage and growth in deposits 5

6 Regions Case Study 6

7 Project Brief Risk Management and Automated Provisioning RMAP The objective of the RMAP project is to deliver a utility that will support Regions Remote Deposit Capture solutions enterprise-wide by enabling: Automated customer eligibility, risk analysis, segmentation and requalification Support RDC transaction analysis and enable controls that will detect or prevent losses/fraud Strengthen adherence with compliance guidelines from the FFIEC 7

8 Guiding Principles Address compliance, legal and audit requirements Manage risk sensibly Streamline enrollment processes Enable broad market roll out of RDC

9 Regions Approach Customer Eligibility & Segmentation RDC Eligibility Segmentation Consumer vs. Business Risk analysis Deposit behavior profile Assigned Deposit Limits Hold policy RDC Deposits Monitoring & Controls Enforce limits Apply holds Identify suspicious transactions and behavior Take action on returns and adjustments (as appropriate) 9

10 RMAP Centralizes Key Metrics Core Data Length of customer relationship Products & Services used Business or Consumer Business Industry Transaction History Average Balances Deposit frequency Deposit amounts and patterns Return items Overdrafts Adjustments RDC History Length of time using RDC Usage metrics Device type Exceptions Profile Provision Manage 10

11 Results Inputs: Core System Profile Data Deposit History RDC History RMAP Services RDC Eligibility Decision Set and Adjust Deposit Limits Automate Holds Increase quality and efficiency for qualifying customers for RDC Set limits that are based on the customer s risk profile rather than one size fits all Offer the service to more customers without increasing risk to the bank Reduce loss exposure by automating hold decisions 11

12 Questions? 12

13 About The Presenters Ken Gross Regions Bank Mary Hockridge Mobile Strategy Partners 13