The ChexSystems® connector provides multiple products for use in the Framework: ID Verification (IDV) and ID Authentication (Knowledge Based Authentication). These products are used to authenticate applicant's identity and determine the applicant's risk level during the account and/or loan origination process.
About ChexSystems®
ChexSystems® is a check verification service and consumer credit reporting agency serving over 8,500 institutions worldwide. ChexSystems® is a subsidiary of Fidelity National Information Services (FIS). It provides information about the use of deposit accounts by consumers.
ID Verification Product
ID Verification helps protect institutions against identity fraud and provide the tools needed to develop and manage your customer identification program, as well as, ensure compliance with the PATRIOT ACT and OFAC regulations. ID verification enables a financial institution to verify the identity of an individual or business by cross-referencing billions of records from numerous, independent data sources to determine the validity of the applicant's information.
ID Verification in the Loan Origination Process
Luke walks into HOTH Financial with the hopes of attaining a $2,500 personal loan to complete home water heater repairs. While at HOTH, he meets with Leia to begin the loan application process. After gathering preliminary data, Leia begins processing the application in the Framework. Once the Applicant Data for Luke has been entered, the Framework requests an ID Verification for the applicant. The Framework quickly returns the ID Verification Report generated by ChexSystems®. After review, Leia determines that the applicant is genuine and proceeds with his application.
ID Authentication Product
ID Authentication (Knowledge Based Authentication) is a real-time, interactive solution that remotely verifies that prospective customers are who they claim to be. ID Authentication generates an interactive, multiple-choice, knowledge-based questionnaire to quickly authenticate identity prior to issuing authorization or access privileges. Questions are randomized so applicants receive different questions to answers each time. Four questions are required to be answered correctly in order to advance. If two or three questions are submitted as true, challenge questions are displayed to provide an opportunity to successfully answer four questions. If four questions cannot be answered accurately, the authentication fails.
ID Authentication in the Loan Origination Process
Ray is an account holder at ZUUL Financial and has the hopes of attaining a $10,000 personal loan to fund his extermination business. Ray arrives at a ZUUL’s midtown branch and meets with Winston to begin the loan application. After gathering preliminary data, Winston begins processing the application in the Framework. Once Ray’s applicant data is entered, Winston requests an ID Authentication. The ID Authentication window pops up containing the authentication questionnaire, Winston asks Ray the questions to determine if he is genuine. Once the questionnaire is complete, Winston clicks Submit to process the authentication at ChexSystems® and return a response in the Framework. They receive a decision of “Pass” and continue with the application process.
