“We have placed significant technical pressure on Aware.” said Alexandre Rhein, CIO of leading Brazilian bank, Banco Daycoval, during his session at Identity Week America 2023. “The security market in Brazil is definitely an issue for our banks. And they [Aware] have had to manage different problems each year since 2017. So, believe me when I say, it’s not easy to do that. And I’d like to express my thanks to them.”

Alexandre joined Aware General Manager of LATAM, Mario Cesar Santos, at the industry event on October 3rd to share the impact that partnering with Aware has had for the business.

“We selected Aware because of the high technical proficiency… And as time has passed, in my opinion, this decision has proven to be the correct one.”

Check out the video below to see the whole session with Alexandre and Mario and continue reading to learn more about how implementing biometrics has been a game-changer for this growing organization.

A Pioneer of Implementing Biometrics for Digital Onboarding

Understandably, as a leading Brazilian bank, Banco Daycoval had high expectations for a solution to their credit application fraud issue. They knew it was essential to find a partner that they could trust to help them protect their customers and the business.

Today, Banco Daycoval holds a credit portfolio valued at 12 billion dollars and has 11 billion dollars in funds. Presently, they manage accounts for nearly three million clients, and they have around four thousand employees.

As Alexandre mentioned in the session, Brazil’s security market has presented huge challenges for Brazilian banks, one of them being credit application fraud.

In fact, according to the Kroll Global Fraud and Risk Report Vol. II, 36% of participating Brazilian organizations responded that the impact of fraud has been “very significant”, placing Brazil as the fifth highest for global fraud impact.

But, what is credit application fraud and how does it impact institutions like Banco Daycoval?

What is Credit Application Fraud?

Credit application fraud refers to the act of providing false or misleading information on a credit application with the intention of obtaining credit that an individual may not be eligible for. This type of fraud occurs when someone intentionally provides inaccurate details, such as false income or employment information, to deceive creditors and secure credit lines, loans, or other financial products.

The fraudulent applicant aims to gain access to credit with no intention of repaying it or with the intent to misuse the funds for personal gain. This form of fraud poses risks to lenders, financial institutions, and other businesses that rely on accurate applicant information to make informed lending decisions. To prevent and detect credit application fraud, organizations often employ various security measures and verification processes, like biometrics, to authenticate the identity and financial information of applicants.

How to Choose the Best Biometric Solution for Credit Application Fraud

When Banco Daycoval was looking for a solution to their credit application fraud problem, they had a few must-haves on their list, including:

1. High technical efficiency
2. Scalability for company needs
3. A convenient user experience

Number one, as Alesandre mentioned, was finding a solution with high technical efficiency. Aware’s proven and trusted portfolio of tech, plus our in-house expertise and zero outsourced biometrics, fit the bill for Banco Daycoval.

Another priority item on their list was that the solution would have to keep pace with the company’s growth. Growth that, over the past five years, has included a 10x increase in the number of transactions completed. Aware’s multi-modal capabilities, flexible deployment options, and future-proof infrastructure have been instrumental in keeping up with the growing institution.

Third, it was important to the Banco Daycoval team that whatever solution they went with provided a good experience for their users. Aware’s solution has been able to help them achieve this by supplying the right amount of friction to maintain security while also ensuring a convenient, user-friendly experience.

“Nowadays, we have very low rates of fraud and I understand that our knowledge of our environment and the tools we are using are very, very well adjusted… And the truth is there is no silver bullet to minimize it [fraud]. At the end of the day, it’s about consistent monitoring and ongoing learning.” Concluded Alexandre in the session. “I see that the present and the future of onboarding and authentication has biometrics acting as a key player.”

Biometric Solutions to Help Prevent Fraud

Do biometrics sound like a good fraud prevention solution for your business? Check out these Aware offerings and get in touch with our team to learn more…

Knomi, Aware’s mobile biometric authentication framework, provides secure and convenient facial and speaker recognition for mobile, multifactor authentication. Additional features include:

• Passive approach to minimize user friction and maximize usability
• Advanced machine learning AI algorithms for unmatched liveness accuracy
• Solutions for onboarding, authentication, and document verification
• Browser-based options for rapid onboarding

AwareID also offers lightning-fast identity verification, multi-factor authentication and biometrics in a single, low-code platform. AwareID’s cloud-based platform provides a functional offering from the start, combining automation with trust so you can continuously authenticate while increasing efficiency and lowering costs.