Wealth management powered by orchestration
Wealth management organizations are under pressure to create exceptional customer experiences underpinned by assured, secure transactions. Identity and verification orchestration provides a framework to build wealth management platforms that meet all of these requirements.
Wealth management plays a critical role in the financial well-being of many individuals and businesses.
However, the wealth management landscape is facing a variety of challenges across competition, regulation, and security. Orchestration platforms provide the capabilities needed to address this triad of challenges.
Avoco Trust is built using a powerful Orchestration and Decisioning Engine (ODE) that integrates with wealth management platforms to deliver an exceptional customer and service experience. ODE provides connectivity to all of the moving parts needed by wealth management companies to perform identity verification, extended due diligence, and Source of Funds (SoF) checks.
Read on to find out how your wealth management organization can future-proof your service, meet regulatory requirements, and provide peace of mind to all stakeholders.
Orchestration services framework and Identity Authorization Networks for wealth management
An Identity Authorisation Network (IAN) is a concept devised by analyst firm Liminal.[1] These connectivity networks answer the increasingly sophisticated fraud perpetrated using deepfakes and generative AI. IANs also meet the requirements to mitigate incumbent fraud, such as synthetic identities. Liminal describes an IAN as:
“Connects online actions to real-world identities, providing secure, high-assurance verification vital for safeguarding digital interactions.”
Identity and verification orchestration provides the connectivity needed to develop an Identity Authorisation Network. Avoco provides the orchestration framework, the Orchestration and Decisioning Engine (ODE).
ODE connects to third-party specialist services to add security, verification, and seamless customer onboarding to existing services such as digital wealth management platforms. The integration is seamless, fast, and runs in the background.
Once integrated, ODE provides benefits that include connectivity with the following:
Verification services
Industry-leading Biometric vendor iProov, open banking and premium banking APIs, credit reference agencies, and document checking services are all part of ODE’s connectivity offering. If you want to add other verification services, integration is simple and fast.
Anti-fraud
Services such as CIFAS in the UK, and Thales IDCloud anti-fraud and PEP checks are provided out of the box. Other anti-fraud services can be added quickly. iProov liveliness biometric technology ensures that a person is present and that they are a real human, so mitigating deepfake fraud.
Privacy
Avoco ODE adds privacy-by-design to a wealth management system. Online checks are performed without storing data. Checks are done on the fly, and the results can be shared as obfuscated output; for example, a wealth management platform may require identity verification checks to output a score that can then be used to grant access to specific products and provide documentation to prove compliance with SoF checks.
Multi-factor verification and risk-based verification
Avoco Trust uses dynamic rules to control and modify the identity transaction’s behavior. These rules allow a diverse set of use cases to be delivered from the same install. Transactions can be verified and handled at any stage of the customer lifecycle. Also, verification can be multiplied based on a risk analysis during the transaction. For example, if the transaction appears unusual or originates from a suspicious IP address or geolocation, additional verification or anti-fraud checks can be applied automatically and dynamically.
The dynamic application of rules enables ODE to align its business goals, customer needs, security, and regulatory requirements across the entire use-case lifecycle.
Five benefits of Avoco Trust in wealth management
Identity and verification orchestration adds enormous benefits to a wealth management platform, including the following:
Benefit one: Customer-centric identity – Avoco Trust integrates with any identity management system, including EntraID, to ensure you deliver the best identity-centered service to customers.
Benefit two – connectivity to verification and anti-fraud services: Avoco Trust connects your wealth management platform to a variety of world-class security and anti-fraud technologies. This includes verification services, biometric vendor iProov, and anti-fraud technologies.
Benefit three: Easy onboarding for investors by signing up via their existing bank ID or other mechanism. Avoco Trust connects and federates existing bank IDs with your wealth management platform. This provides seamless linkage to customer bank accounts under customer control. Bank IDs enable federated login, allowing your platform to use the bank’s secure login system. Customers can log in to your platform using their bank credentials, leaving your platform to deliver engaging and beneficial features, without the concern of credential management or recovery.
Benefit four – Genuine human presence: Deepfakes and synthetic identities seriously hinder secure transactions. iProov technology confirms that users are who they claim to be, physically present, and not attempting to deceive the system. This first step can be augmented using anti-fraud/AML checks, PEP checks, CRA checks, etc. These checks can be performed at any juncture in a transaction lifecycle. This provides a dynamic, flexible way to ensure that transactions are secure and reliable.
Benefit Five – dynamically adjust to a service need: ODE and iProov provide modifiable user journeys that reflect security and customer needs. ODE enables the delivery of custom paths for user onboarding, from simple social logins to comprehensive identity verification. The ODE framework uses dynamic rules to change the use case requirements on the fly to reflect changing needs, use cases, and environments.
Avoco Trust: Source of funds verification
Source of Funds verification, i.e., money incoming from investors, must be validated and assured by a trusted individual or firm, such as a solicitor, bank, or financial advisor. ODE offers per-transaction validation to help alleviate fraud. The underlying capability is “vouching.”
A vouching service is generated using Avoco’s orchestration framework for wealth management and iProov’s biometric assured human test. The service provides Source of Funds verification.
Initially, the entity/person providing the validation of funds is verified using various options:
Group-level checks: include D&B, CIFAS, and Open Banking. Others are available as required.
Individual-level checks: iProov’s biometric human-assurance test and other checks, such as AML/CIFAS.
Once verified, the entity is accepted as a “fund voucher” for the wealth management service. This entity can then act to validate money transfers as required. The verified entity will have access to relevant parts of the service to carry out the validation. An entity can be reverified, or new verified individuals can be added to the service, as required by the service’s rules.
Fund vouchers can then provide a cross-reference for individual investors. These validation checks can occur automatically or manually, depending on the configuration in the service’s rules, with the investor choosing which to perform from a pre-agreed list of fund vouchers.
A complete audit trail is recorded.
Contact Avoco Trust to find out how your wealth management platform can have fully compliant SoF checks today.
[1] Identity Authorization Networks: Market Trends & Insights