Fino Payments Bank is one of the newer payment banks created after the Indian regulator granted RBI payment banking licenses to increase bank penetration in India. The bank was founded on April 4, 2017 and went into operation on the day it was founded with 410 branches and more than 25,000 bank points. The bank is part of parent company Fino Paytech Limited, a technology solutions provider for institutions such as banks, governments and insurance companies.
CustomerXPs is a Bengaluru-based software products company that provides banking institutions with financial crime risk management and customer experience management solutions. Founded in 2006, the company sells its financial crime risk management software product under the Clari5 brand. The company claims Clari5 currently processes over 10 billion transactions, manages over 450 million accounts, and secures 4% of the world’s banking operations.
Project details:
Fino Payments Bank wanted to improve its fraud risk management framework and meet regulatory requirements. The bank needed a solution that could detect and prevent potential fraud in financial and non-financial transactions for its Internet banking, mobile banking, ATM / POS, cards, core banking and financial inclusion channels in real time. After a comprehensive selection process, the bank decided in favor of Clari5 as a solution for fraud management in companies. The project started on September 27, 2019 with commissioning in six months on March 26, 2020. The project teams consisted of one member who was evenly divided between project management, requirements acquisition, development, quality analysis and implementation.
Solution:
Clari5 uses multi-layered technologies, including BI rules and AI, to monitor financial and non-financial transactions, taking into account all scenarios with dynamic behavior profiles for better ADR (Account Detection Rate) and minimization of false positives. It has real-time transaction monitoring and prevention with suspicious transaction monitoring with the flexibility to add unlimited trigger conditions and push up / down factors for risk assessment. It also has built-in case management for managing the investigation of cases triggered for any of the reasons, i.e. suspicious transactions. A risk-based approach to fraud detection at the scenario level and ready-to-use reports as well as integrated reports and dashboards for MIS and ongoing banking requirements are a key feature of the solution implemented in the bank.
Implementation:
Clari5 leveraged its enterprise-wide project management framework, Clari5One, to gain complete control of the delivery management plan and remove potential obstacles, and played a key role in achieving timely project delivery. In addition, tele / video conferencing tools, rigorous operating conditions, real-time communications and continuous updates ensured that project team members were fully in sync throughout the project journey.
The implementation had to deal with additional challenges posed by COVID-19. Rather than working side-by-side with officials from the bank’s fraud risk management department, Clari5 had to rely on the company being reached on time and in a completely remote manner with no margin for error. The result was a change in mindset in the project implementation approach.
The most important insights from this implementation include the hyper-optimization of the project management, the establishment of the infrastructure for the application, the integration approach and the finalization of the methodology, the SIT / UAT support and the final go-ahead for commissioning. The supplier felt that the positive outcome of this project would give them ample scope for a significant number of future deployments in other regions that could be done remotely.
Program governance:
The supplier ensured internal alignment to understand Fino’s needs and business goals of the project, and alignment between Fino and himself with a project launch session for scope, key expectations, goals, dependencies, risks, key governance processes like change management and status Reporting etc. Transparency in the project status, management of important dependencies, discussion of risks / problems / concerns was made possible and established by the weekly project status reporting. This enabled everyone involved to have a common view of the progress of the project.
Since project execution had to be managed remotely due to the Covid-19 pandemic, the project management platform included an integrated ticket and task assignment, a task progress review, task dependencies,% of work completed at any point in time, etc. for the project manager to have a clear To have a view of the project status, even if individual tasks have been completed and compiled at different locations.
Effects on the project:
The bank was satisfied with the implementation of the solution, as the Clari5 solution processed transactions from more than 1.7 million customers, more than 400 branches and 200,000 bank points. The bank appreciated the seamless integration with the bank’s mission-critical channel for financial inclusion. Accelerated investigative ability based on the risk of fraudulent transactions with built-in case management functionality and the ability to measure the effectiveness of the FRM initiative through reports and dashboards were important to the bank. The fact that the solution was in line with the regulator’s guidelines for implementing the fraud detection / reporting capability was an important positive result for the bank.
IBSI view:
Fino Payments Bank’s EFM project is a success story of a full-fledged, enterprise-level, mission-critical fraud risk management solution that goes live and meets all of the bank’s needs. The fact that it was managed and implemented remotely is a testament to the vendor’s capability.
IMPORTANT FACTS
Bank: Fino Payments Bank
Bank headquarters: India
Solution partner: CustomerXPS
Solution: Clari5
Timeline: 6 months
