If you keep the following four points in mind when reviewing possible financial services software solutions for your business; you will be well on your way to a successful business venture. Good luck!How does it help you to ‘know your customer’?Quickly and accurately identifying customers is critical. Customer verification is essential for fraud prevention. Choose a solution that captures and tracks the critical customer information, so you can find them if there is a problem with their transaction (and hopefully get reimbursed). You ONLY have potential recourse on returned checks when you are confident that you know your customer and have their information.A great way to capture; access and maintain this consumer information is via biometrics. At enrollment customer can provide ID, scan their finger; and get picture taken. Then on subsequent transactions, they identify themselves by placing their finger of a finger scanner. This speeds the transaction time; and minimizes language barriers.
Note: When investigating biometric solutions, look for systems that offer one-to-many matching; which offers greater fraud protection and better identification accuracy than one-to-one (1-N) matching.Can the built-in tools help you manage your risk? Just knowing your customer is a step in the right direction to managing your risks; however having some additional tools can also help. Servicing the alternate financial services market has its inherent risks; from check fraud on up to robbery. While bullet proof glass will go a long way on the robbery front; biometric and verification tools can help with fraud.Some software companies providing integrated biometric systems can offer shared negative data – where a consumer with negative transaction history would be declined in advance of the transactionYou should also be aware of check verification tools – some software integrates with check verification databases (including bank databases); and can alert you in advance of completing a check cashing transaction if a check is high, medium or low risk.How does it ensure compliance?Government compliance has become a necessary evil – you must stay in compliance to stay in business. Software should help to ease your compliance burden. New capabilities enable auto-populating data records into government reports; pop-up reminder windows; electronic reporting; and record keeping really help to meet federal reporting requirements. And offer easy access to historical data should you get audited.In addition, banks are very risk averse, and have strict mandates that they “know their customers” for compliance purposes. If you can provide proof of your record keeping and maintain this information it will go a long way with your bank and ultimately your own compliance management. The federal government (and many states) requires you maintain records for 5 years! Make sure you’re doing this.
How can you maintain happy / loyal customers?The customer experience in an alternate financial services situation is not always great. Search twitter for “check cashing” and you’ll get an earful! So, why not make it easier for them.Keeping customer records that are easily accessible will ensure that you are informed of the customer’s transaction history; and can quickly make informed decisions. Then you’ll really be offering convenient, fast, hassle-free service that’s worth the premium.They’ll be happier; and will in-turn tell their friends; about your business. What better way than word of mouth to grow your business.