AML Screening

Discover how Banca Sella uses Fido’s identity scoring AI based on digital footprints to onboard new customers, prevent fraud and improve security and compliance operations.
Case Study: Banca Sella

About Banca Sella

Banca Sella is one of the Italy’s Premier Banking Institutions. Being one of the top 20 largest banks in Italy, Banca Sella has over 400 branches scattered across the Italian Peninsula and Sicily. Ever since its founding in 1886, Banca Sella has been steadily growing and in the 1930 has started expanding outside of its town of origin - Biella.

One of the key reasons behind Banca Sella’s continuous success is constant innovation and improvement in internal and customer-facing processes. Today, Banca Sella Group is a financial ecosystem consisting of banks, ECIs and financial services companies - all sharing the passion for innovation and entrepreneurial DNA the founding family is known for over the last 450 years.

Integration of Fido’s identity scoring algorithms in our AML/KYC process allowed our bank to tap into alternative data sources to identify suspicious behavior in the account opening phase, with positive impacts on overall onboarding process and account opening times.

Luca Crivellari
Security & Antifraud Director, Banca Sella

The Challenge

Streamlining AML&KYC Operations while improving onboarding time.

While digitalization in the financial and banking industries open many opportunities for banks and their customers, there is no denying that digitalization opens doors to new types of compliance risks and technological loopholes leading to significant regulatory scrutiny.

This trend was further fueled by restrictions on movement caused by the COVID-19 pandemic. With the onboarding and account opening process being entirely conducted online, financial criminals could use stolen or falsified identity documents or sensitive information to manipulate the system and perform unlawful acts such as account takeovers, money laundering, terrorist financing, etc. For Banca Sella, a banking institution that operates within a highly regulated industry with strict laws and regulations, ensuring full regulatory compliance has always been a must.

To facilitate the growth of their digital banking services, the bank was looking for ways to automate and enhance anti-money laundering (AML) and know your customer (KYC) controls in the account opening process, without jeopardizing strict abidance to regulations. That meant that Banca Sella needed a scalable way to flag questionable or false identities, complementing its existing AML & KYC processes and reducing the risk of various fraudulent activities as well as money laundering.

The Solution

Accurate Identity Verification with Digital Footprints.

Anti-Money Laundering (AML) and Know Your Customer (KYC) operation teams in financial institutions typically rely on numerous data sources to check and clear new customers for matches in financial sanctions registries, adverse media appearances, political exposure relevance, etc. However, these tools alone are often not sufficient to screen all relevant AML/KYC aspects, while ensuring speed and scale at onboarding.

As a way to supplement and optimize their existing AML and KYC procedures and validate new customers, Banca Sella used Fido’s identity scoring algorithm powered by digital footprints. The algorithm combines digital signals from various sources to paint a more complete picture of customer validity and risk level. Fido’s powerful identity scoring algorithm can reliably spot irregularities in customer identity by assessing digital signals such as:

  • Phone number
  • Email address
  • Device detection
  • IP address detection
  • Browser detection
  • Associated external service

When collated, these data signals generated an identity score that Banca Sella used to identify suspicious identities requiring further assessments, thus effectively reducing manuality from the identity verification process while complementing standard AML and KYC checks and procedures requested by the regulation.

The Impact

Smarter onboarding management and fraud losses reduction

With Fido at their side, Banca Sella was able to speed up the online-current account opening process, significantly reducing execution time and manual control activities thanks to Fido’s AI-based algorithm.

Fido’s algorithm helped reduce application processing times by 70%, allowing Banca Sella to focus their time and effort on the most promising customers and leads.

Now that Banca Sella has a more comprehensive method of screening online customers and analyzing remote applications, they can allocate resources towards other crucial processes and continue to deliver exceptional banking services while ensuring regulatory compliance.

-25%

Onboarding time
Fido’s algorithm helped reduce application processing times, allowing Banca Sella to focus their time and effort on the most promising customers and leads.

+50%

Reduction in fraud losses
Fido enabled Banca Sella to identify and cut fraud losses in half, and make an immediate impact to company financials without interfering with user experience.