• ChexSystems network members are making a strong shift to adopt QualiFile, the industry-leading statistical risk scoring solution for deposit account origination.
• Bremer Financial is just one of more than 7,000 institutions that utilize the QualiFile solution suite to mitigate risk and automate deposit account origination.
• FIS continues to invest in risk and compliance solutions to help institutions address increasingly complex risk and regulatory issues.
The QualiFile solution, offered by Chex Systems Inc., a wholly-owned subsidiary of FIS, evaluates the risk of the deposit account applicants. Year-to-date, nearly 88 percent of the 8,500 ChexSystems network members rely on QualiFile to automatically score demand deposit accounts (DDAs). Key drivers for this demand include ongoing regulatory changes, the need for financial institutions to establish profitable relationships with consumers and a continuing need to mitigate risk for accountholders.
“FIS’ risk portfolio provides leading solutions to help financial institutions address the perpetually changing regulatory and compliance requirements and combat the growing challenge of preventing fraudulent activity and mitigating risk,” said Anthony Jabbour, executive vice president, FIS North American Financial Institutions. “In 2011, FIS’ risk management products saved our clients an estimated $1.3 billion in fraud and abuse losses for demand deposit accounts. Our internal research shows a typical fraud loss averages $1,200 and typical abuse loss is about $400. The need for solutions to confront these issues is growing and FIS continues to raise the bar in combatting these industry-wide problems.”
The extensive FIS risk solutions portfolio, delivered through its ChexSystems suite of products, helps clients automate and streamline processes that detect and prevent new types of fraudulent activity while minimizing risk. Together, QualiFile, ID Verification and ID Authentication create a comprehensive solution to satisfy know-your-customer compliance requirements, while mitigating identity fraud and behavioral risk. All three solutions are powered by multiple data sources, including DebitBureau®, the strongest national network of debit data from more than 8,500 financial institutions. With such powerful data behind them, the solutions match and verify identity data and generate behavioral risk scores and automated decisions for up to 95 percent of the U.S. population.
Ongoing regulatory changes and the need for financial institutions to establish profitable relationships with consumers while mitigating risk have contributed to both new sales and renewal deals for QualiFile, the industry-leading statistical risk scoring solution for deposit account origination. A component of the FIS risk management portfolio, QualiFile provides real-time account opening decisions for DDAs. Now with the addition of public record and alternative lending data, QualiFile can find more data and return useful information for nearly every applicant.
Today, more than 7,000 FIS clients use QualiFile’s ability to provide instant and automated decisions to the new accounts desk and in the online account origination space. Based on the financial institution’s chosen new account strategy, QualiFile helps minimize their fraud and abuse charge-off exposure. In addition, QualiFile eliminates the need for branch personnel to manually review data and subjectively decide whether or not to open an account.
“Bremer has utilized QualiFile as a key tool in our efforts to provide a safe and secure environment for our clients and their money,” said Ben Fillmore, VP Deposit Products, Bremer Financial. “Mitigating identity risk is a top priority and to address that, we are also exploring other FIS solutions. At Bremer, our goal is to provide great service to our clients and communities, while also providing safety and security. The FIS suite of risk tools helps us meet both of those objectives.”
ID Verification and ID Authentication have also seen significant sales growth, with ID Authentication growing at nearly 100 percent over last year. In addition to helping clients comply with Know Your Customer regulations, these Web-based solutions help financial institutions meet the guidelines established by the FFIEC’s Supplemental Guidance on Internet Banking Authentication, which recommends a layered security approach to protect against increasingly sophisticated methods of online banking fraud. The recommendation for using more sophisticated identity authentication procedures is leading financial institutions to rethink their identity verification programs and adopt ID Authentication as an additional authentication technique.
Learn more about historical trends in new account applications in a recently published article from FIS.
FIS (fisglobal.com) is the world’s largest global provider dedicated to banking and payments technologies. With a long history deeply rooted in the financial services sector, FIS serves more than 14,000 institutions in over 100 countries. Headquartered in Jacksonville, Fla., FIS employs more than 32,000 people worldwide and holds leadership positions in payment processing and banking solutions, providing software, services and outsourcing of the technology that drives financial institutions. First in financial technology, FIS tops the annual FinTech 100 list, is 425 on the Fortune 500 and is a member of Standard & Poor’s 500® Index.
This news release contains forward-looking statements that involve a number of risks and uncertainties. Statements that are not historical facts, including statements about our beliefs and expectations, are forward-looking statements. Forward-looking statements are based on management's beliefs, as well as assumptions made by, and information currently available to, management. Because such statements are based on expectations as to future economic performance and are not statements of fact, actual results may differ materially from those projected. We undertake no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise. The risks and uncertainties which forward-looking statements are subject to include, but are not limited to: changes in general economic, business and political conditions and other risks detailed in the “Statement Regarding Forward-Looking Information,” “Risk Factors” and other sections of the Company’s Form 10-K and other filings with the Securities and Exchange Commission.
For More Information
Mary Waggoner, SVP, FIS Investor Relations
P: 904-438-6282 - E: mary.waggoner[.]fisglobal.com.