1. Electronic authentication: validating and verifying customer identities and bank details Presented by: Stan Matthews & Scott Robertson 13 th November 2007

2. Making it easy for your customer Streamlining business processes to improve customer interaction Straight-through processing Name and address capture Electronic identity check Credit check Bank account validation

3. What is identity? Attributed identity Name Date of Birth Collected identity Education Employment Biometric identity DNA 80,000 reported cases of Fraud 2006 UKPA had 16,500 known fraudulent applications UKPA issued 10,000 2,500 fraudulent applications for Driving Licences 5,000 Driving tests cancelled in 2005

4. Principles of eID Authentication Electronic Identity Authentication Proves your customers identity by comparing bio-graphical information given at point of application against data held within authoritative databases……..

5. ID fraud prevention Validation Proving an identity exists Verification Proving the applicant is the owner of that identity …. does Stan Matthews exist? ….am I Stan Matthews?

6. How does it work? Data Input Name and Address validation Validation Establishing the existence of a real world identity Verification Positive corroboration of identity and biographic details supplied Key fraud indicators Authentication

7. How does it work? Authenticate Capture Fields Validated Name and Address Date of Birth Time at address Former Addresses Time at these addresses Male or Female Telephone Numbers No of Dependents Bank Details Owner Occupier PAFER Name Address Data Input Yes No 70 Authentication Index Authentication Secure Internet Connection Validation Verification

8. Authentication  Breadth No. corroborative matches against data sources  Depth How far back in time the record goes  Quality Type of record and level of due diligence performed in its creation Authentication Index

9. Experian’s data sources

10. The Joint Money Laundering Steering Group

12. “Business drivers” Straight through processing Web Call Centre Post Consistent AML strategy Risk based approach Improved operational efficiency Compliant Reduction in fraud

13. Authenticate Hosted, integrated or bespoke Solution fast & easy to implement Name & address verification on entry Breadth & depth of Experian data Data consistency and updates Pre-configured authentication templates Easy to use – improves business process Scaleable Solution

14. Summary Identity theft is growing problem Paper based checks are flawed Electronic checks are accredited Ease of use and implementation Integrated into existing applications

15. Electronic authentication: validating and verifying customer identities and bank details Presented by: Stan Matthews & Scott Robertson

16. Getting payment processing right Improve the customer experience Reduce costs Increase revenue

17. How many do you have? What do you pay for by

18. You are not alone: 75% of people in the UK have at least one Direct Debit commitment 98% of the UK workforce is paid by Direct Credit 1 billion extra Direct Debits to be processed each year by 2015 700 million extra Direct Credits to be processed each year by 2015

19. Barclays: BT’s Bank BT HSBC: Customer’s Bank The payment process

20. What can go wrong with DD and DC? Rejections 50 million Direct Debits and 2 million Direct Credits rejected each year Implications Costs - an average of £30 to fix each rejected payment Customer experience Loss of business

21. Lack of funds in the payee’s account Mistakes on the Direct Debit mandate Data entry errors The account does not support Direct Debits / Direct Credits Why do rejected payments occur?

22. How can we help? “Since implementing BANK WIZARD we have virtually eliminated the problems associated with processing incorrect bank details. I would have no hesitation in recommending BANK WIZARD to any organisation processing large volumes of Direct Debits” Shelagh Osey, Financial Services Manager

23. Calculating the costs Baseline Number of new DDI per month10,000

24. Calculating the costs Baseline Number of new DDI per month10,000 Rejected payments (at 5%)500 35% as a result of incorrect bank account information175

25. Calculating the costs Baseline Number of new DDI per month10,000 Rejected payments (at 5%)500 35% as a result of incorrect bank account information175 Cost incurred per rejected payment (BACS)£30 Total cost to gym of rejected payments (£30 x 175)£5250

26. Calculating the costs Baseline Number of new DDI per month10,000 Rejected payments (at 5%)500 35% as a result of incorrect bank account information175 Cost incurred per rejected payment (BACS)£30 Total cost to gym of rejected payments (£30 x 175)£5250 Total number of lost customers (25% of 175)44 Cost per customer£50 Loss of business (£50 x44)£2200

27. Calculating the costs Baseline Number of new DDI per month10,000 Rejected payments (at 5%)500 35% as a result of incorrect bank account information175 Cost incurred per rejected payment (BACS)£30 Total cost to gym of rejected payments (£30 x 175)£5250 Total number of lost customers (25% of 175)44 Cost per customer£50 Loss of business (£50 x44)£2200 Overall monthly cost to the gym (£2200 + £5250)£7450 Total annual cost to the gym£89,400

28. Validating bank details Growing industry Minimise negative effect of rejections Reduce costs Improve customer experience Increase revenue QAS can help - BANKWIZARD

29. Thank you for listening Any Questions?

30. Thank you for listening Presented by: Stan Matthews & Scott Robertson Date: 13 th November 2007 www.qas.co.uk