DirectID join the FCA’s 2020 Digital Sandbox to combat vulnerability

DirectID have been shortlisted as one of 30 companies to join the FCA 2020 Digital Sandbox pilot.
Published on
November 27, 2020
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In collaboration with The City of London Corporation, The Financial Conduct Authority are piloting the sandbox to provide support to innovative firms who are tackling challenges relating to, or exacerbated by, coronavirus.

The pilot will run until early February and will focus on 3 pressing areas impacted by the pandemic:

  • Fraud and Scams
  • Financial Vulnerability
  • SME Lending

Using machine learning and transaction data, the DirectID project will highlight emerging financial distress through key indicators derived from an individual’s historical and predicted cash flow. This will aim to combat the increased risk of vulnerability in the UK and could be crucial to improving the financial resilience of consumers.

The project will incorporate several technological approaches. This will cover transaction data, categorisation, financial insights such as income verification, and cashflow modelling. Both supervised and unsupervised machine learning models will be used throughout the project.

A key feature of the pilot is building a community of interested stakeholders to interact with the teams and solutions as they are being developed in the testing environment, creating a knowledge base of shared expertise and experience.

DirectID Founder & CEO, James Varga, said:

The current definition of financial distress is largely based on post-event indicators provided by bureaus and other historical factors. While these may have been satisfactory in the past, they fail to paint an adequate picture of an individual’s current situation, or whether they are likely to fall into financial distress in the near future. Not only does a cashflow based approach to identifying financial distress offer a real-time view of vulnerability, but it also gives a more accurate insight to those who are likely to fall into financial hardship as a result of the coronavirus pandemic.

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DirectID began working with Target at the beginning of 2020 to provide open banking data for their new Mortgage Hub. It is the first digital mortgage platform to be designed from the ground up, and the first to use open banking data as the backbone for customer experience.

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DirectID began working with Target at the beginning of 2020 to provide open banking data for their new Mortgage Hub. It is the first digital mortgage platform to be designed from the ground up, and the first to use open banking data as the backbone for customer experience.

Shieldpay

Multi-award winning payment platform. Designed for highly secure & efficient transactions. Trusted by over 100 law firms, lenders and professional services.

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DirectID began working with Target at the beginning of 2020 to provide open banking data for their new Mortgage Hub. It is the first digital mortgage platform to be designed from the ground up, and the first to use open banking data as the backbone for customer experience.

Target Group

A Tech Mahindra company and a leading business services provider in lending, investments and insurance, managing over £25bn+ assets.

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DirectID began working with Target at the beginning of 2020 to provide open banking data for their new Mortgage Hub. It is the first digital mortgage platform to be designed from the ground up, and the first to use open banking data as the backbone for customer experience.

Best Egg

Consumer-lending platform developed by Marlette Holdings, Inc.

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DirectID began working with Target at the beginning of 2020 to provide open banking data for their new Mortgage Hub. It is the first digital mortgage platform to be designed from the ground up, and the first to use open banking data as the backbone for customer experience.

Dana

A lending as a service provider using open banking to strengthen their credit scoring engine

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Frequently asked questions

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01

What is open banking and how does it work?

Open banking is the practice that allows people and businesses to share up to 12 months of transaction data. DirectID is regulated by the Financial Conduct Authority as an Account Information Service Provider (AISP) - the intermediary who safely facilitate this process.

02

What is transaction categorisation?

Transaction categorisation is the process of adding context to raw transaction data. The process gives you an understanding of what your customers' spend their money  and where.

03

How does bank account verification work?

Using the bank account verification API, DirectID matches the details provided from your customer to those on their account. We apply a set of sophisticated algorithms and rules to verify the name, and then tell you what does and does not match.

04

How do you verify income with open banking?

After a customer shares their data, DirectID identify recurring credits to the account and group these. Using an algorithm we identify the monthly income for each income stream. We then return the calculated income and confidence score to you.

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