Data and Risk Management:A Match Made in FinTech. Earlier this year Adrian Black, CEO of Contego, gave an insightful presentation on what data needs to be leveraged in the fight against fraud. Here at Contego we think that sharing the right intelligence reduces collective risk. So please take a look.

1. Data and Risk Management:
A Match Made in FinTech
Adrian Black: CEO, Contego Fraud Solutions Ltd
27 March 2014

2. Risk
&
Data

3. A Risk
Typology
Market Risk
Credit Risk
Liquidity Risk
Operational
Risk
Legal &
Regulatory
Risk
Business
Risk
Strategic
Risk
Reputation
Risk
So what do we mean by “risk”?
• The best companies manage
risk by taking a holistic view
of all risks faced by the
enterprise
• Once risk factors are
understood, businesses run,
and regularly re-run, risk
assessments of each risk
factor
• Risk assessments used to
evolve systematic
procedures to reduce
likelihood and impact of key
risk factors

4. A Risk
Typology
Market
Risk
Credit
Risk
Liquidity
Risk
Operational
Risk
• Fraud
• Inefficiency
Legal &
Regulatory
Risk
• Compliance
failure
Business
Risk
Strategic
Risk
Reputation
Risk
So what do we mean by “risk”?
• The best companies manage
risk by taking a holistic view
of all risks faced by the
enterprise
• Once risk factors are
understood, businesses run,
and regularly re-run, risk
assessments of each risk
factor
• Risk assessments used to
evolve systematic
procedures to reduce
likelihood and impact of key
risk factors

5. Some key FinTech risks
Fraud
• The annual cost of fraud to the UK economy is huge
• Fraud losses can damage, cripple and kill companies
• Too many think fraud only happens to the guy next door
Operational Inefficiency
• Must be efficient to compete, survive & maximise returns
• Back-office processes often lag behind revenue growth and create performance
drag
Compliance Failure
• Severe penalties for compliance failure in regulated businesses
• Reputation damage can be severe
Opportunity:
aggregate and leverage data
to reduce these risks
£52bn

6. So what data should you leverage?
Real-time lookup
& risk scoring
Your Internal
Data
Fraud Markers
& Watchlists
Best of breed
commercial data
People & Companies
Law
Enforcement
Intelligence
Open Source data
You’d be amazed!
Fraud Forums,
Trade Associations
& Peers
Shared intelligence
Your
Internal
Systems
Why? – To reduce risks
• Improve compliance
• Reduce fraud
• Improve efficiency
• Lower IT, data & other costs
• Protect reputation

7. At Contego we aggregate everything we can

8. The Contego solution
Goal: tap into the universe of data to bring efficiency and certainty
to clients seeking to reduce risk
• Aggregate best-of-breed data on people, companies & other entities
• Provide real time due diligence & risk scoring
• Enhanced KYC, Identity Verification & ID document checks
• Case management module & encrypted cloud storage
• Clients select any combination of:
• SaaS Console for management & manual checks
• API for full integration into client systems
• Customised & branded onboarding forms

9. Contego Case Study: Regus
Requirements
• Compliance: with Money Laundering Regulations & London Local Authorities Act
• Fraud: detection of high risk & fraudulent new clients
• Efficiency: improve efficiency of client onboarding & compliance processes
• Intelligence sharing: screen against trade association & law enforcement intelligence
Solution
• Customised application form for all clients (limited company, sole trader, etc)
• Automated risk scoring, identity verification & compliance checks
• Management console to process “refer” results & perform deeper due diligence
• Secure upload, scanning & storage of ID documents as part of “compliance pack”
Aggregated Data used to reduce
Operational, Regulatory & Reputation Risk

10. A final word: Intelligence Sharing
• We know that sharing intelligence reduces collective risk
• Law Enforcement Agencies will share intelligence to reduce harm
• Preventing fraud, money laundering & terrorist financing counts
• Data Protection Act is not a barrier if data used & handled correctly
• DPA is wrongly used as an excuse not to share intelligence
• Using a trusted partner can help
• To analyse & transform data into actionable intelligence
• To ensure information security to a certifiable level
• Encryption & other security measures are important
• Reciprocal intelligence sharing benefits all participants
• It’s not a zero-sum game
So don’t hoard intelligence:
Share it for the collective good!

11. Thank you – any questions?
adrian@contego.com
Adrian Black

12. Contego: Manual Console