As we mentioned before at the 7th Annual Prepaid Expo taking place this year in Las Vegas, Nevada, on March 12-13, 2012, attendees will have the opportunity to schedule one-on-one meetings with experts from an array of Prepaid specialties.
What are the (1-3) most pressing issues/trends in your subject area that prepaid professionals should consider and/or watch closely in the coming year?
One of the most pressing issues professionals should watch closely in the coming year is the legal and regulatory changes at both the state and federal levels. It is more important than ever to ensure that prepaid professionals are taking the steps to be in compliance with the many state and federal regulations that impact the prepaid industry.
2 .An ongoing issue that prepaid professionals face is identifying thin file demographics. The underbanked market is one of the largest opportunities for the prepaid industry, however, being able to identify who these consumers are is an issue as these are people who have thin files. As a result, more banks are turning to robust identity verification solutions that fall outside of the credit spectrum.
3. Finally, being aware of the different levels of identity verification that can be used to meet compliance regulations is important. Issuing banks are incorporating knowledge based authentication (KBA) tools as a higher level of verification in situations where businesses want more confidence that the person they are dealing with is real. KBA is an automatic process used to determine if someone is who they say they are in faceless transactions and works using a series of multiple-choice questions that are developed in real-time based on personal information found in a individuals file. Some KBA solutions rely on credit information to generate questions making it difficult to use in the thin file market since limited or no information exists as a foundation to formulate on-the-fly questions.
What are the 3 most commonly asked questions/concerns you hear from clients?
1. What are you approval rates?
2. How can you help us meet compliance regulations?
3. How can we increase card issuance while remaining in compliance?
What is/are the most common mistake(s) or oversight(s) people make in the prepaid?
One of the most common mistakes some companies may make in the prepaid space is not being active in the CIP process and delegating this process to others. Driving revenue is dependent on card activation.
Are you using or is your processor using an identity verification vendor that will help you maximize card activations while maintaining compliance?
What are the issuing banks rules and how does these impact activations?
Active involvement and review of this process will result in higher card activations and consequently more revenue. Another common mistake is not taking advantage of automation when it comes to manual review processes. The use of KBA can replace manual review and result in higher approval rates as it replaces the laborious task of a potential customers sending in a documents such as a driver’s license and utility bills.
About John:
You can schedule a meeting with John Dancu at Prepaid Expo here, if you need help automating your CIP compliance checks.
Call: 1 888-670-8200
Email: register@iirusa.com
Please mention your priority code when registering to save $100 off the standard and onsite rate:
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