Funding 365 introduces digital ID and AML checks

The lender is using Thirdfort software to enhance its fraud prevention services and is making the technology available to all borrowers who wish to use it.

Thirdfort uses digital identity checks, facial recognition technology, PEPs (potentially exposed person) and sanctions screenings and document authentication scans, as well as checks on borrower’s bank accounts facilitated by open banking.

Borrowers take a photo of their identity document (ID), a selfie and quick video, and consent to linking to their bank account. The technology then verifies the ID is authentic and uses biometrics to match the selfie to it.

Funding 365 managing director Michael Strange (pictured) told Specialist Lending Solutions that after a successful trial period, it was offering all clients the opportunity to complete its know your customer (KYC) and AML details through Thirdfort.

“Many clients prefer this method due to its convenience, however we do still allow borrowers to complete KYC processes through their appointed solicitor in the traditional format,” he said.

“We will, however, require all borrowers to utilise Thirdfort where their specific circumstances may be such where our typical fraud prevention systems are not as effective as they would usually be.”

Offshore application

Funding 365 highlighted one particular commercial bridging deal where it used the software to help complete a deal involving a borrower in a remote location.

The £195,000 bridging loan, secured against offices and retail space in the East Midlands was for a corporate borrower with a major shareholder who was sailing a yacht off the coast of Australia.

The technology allowed the shareholder to complete the required checks without returning to shore.

Strange continued: “With the integration of Thirdfort earlier this year, we have a system that speeds up the completion of borrower KYC and AML checks and enhances our fraud detection and prevention capability.

“It’s proving to be especially invaluable in cases such as this, where traditional, paper-based solutions simply would not have worked.”

Thirdfort director Olly Thornton-Berry added: “We developed Thirdfort with fraud prevention in mind, at a time when documents are being faked in increasingly sophisticated ways.

“KYC and AML checks remain largely manual, which can be inconvenient and slow as well as open a transaction up to risk.

“Open Banking technology allows us to retrieve digital financial data directly from consumers’ accounts, ensuring there is no opportunity for it to be tampered with.”