Finance and accounting outsourcing risK soLution serVices

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entrePreneuriaL aPProacH

a Focus on FLeXiBiLitY and raPid scaLaBiLitY

ProVen aBiLitY to enaBLe groWtH

arVato FinanciaL soLutions.

integrated strategies For customer oPtimization

We help clients minimise risk by analysing and scoring

customer data, and maintaining constant checks of

customers’ financial status.

By reducing bad debt losses across all phases of the

customer life cycle, our risk management service helps

clients significantly increase their revenues. our of-

fering can be used by our clients at the start of a new

customer relationship to enable appropriate decisions

on how they want to treat their customers, including

the definition of credit limits and payment methods.

risK soLution serVices

comPreHensiVe risK management soLutions – reducing risK in tHe onLine enVironment

risk solution services by arvato enables easy implementation of extensive pro-tection and risk management, individually adjusted to client requirements to maximise earning potential.

SOLUTION OVERVIEW

at the heart of arvato’s risk solution services is the ‘decision engine’, a de-cision-making system that optimizes the risk management process with the integration of multiple external configuration options.during the checkout process all customers undergo a comprehensive risk as-sessment which checks factors such as, the identity, return behaviour, historic customer information, credit worthiness, shopping cart and payment methods of each customer in 1 - 2 seconds

High risk customers are then required to pre pay orders while reliable customers can chose from the full range of payment methods, increasing both conversion rate and customer satisfaction and loyalty.

in addition to access to reports and analytics in real time, arvato provides mer-chants with a personal risk manager. the arvato risk manager provides contin-uous analysis and advice on how to maximise profits and minimise risk, moni-toring all orders and KPi’s including factors such as conversion rates, payment methods used, new patterns of fraud and overall performance.

Based on their experience with payments, information from shopping baskets and external data on credit ratings, an arvato risk manager sustainably optimiz-es your client customer portfolios, thereby avoiding both risks and fraud as well as monitoring and implementing measures against new patterns of fraud.

QUICK AND EASY CONNECTION

designed as an asP solution*, risk solution services automates risk checks in the online order process. Quick and easy connection is assured by means of a stan-dardized soaP web services interface. alternatively, integration can be carried out via a batch interface (XmL format); in this case inquiry data is transmitted to the system in accordance with defined operations.

the system then uses the selected module and service package to check them. the eshop/customer system receives the results of these checks in the form of a recommendation for action (e.g. offer for a method of payment). Follow-up processes that are required, depending on the recommended course of action, can be triggered by the eshop/customer system.

* application service Providing (asP) is a service in which an application (e.g. an application-pro-

cessing system) is provided via a public network (e.g. the internet) or a private data network (e.g.

VPn) for the purpose of exchanging information. the asP service provider provides the it infra-

structure required to operate the software solution and handles the entire administration.

Focus on your core business

Better cost control

enhanced credit profiles

Higher conversion rates

risK soLution serVices

comPreHensiVe risK management soLutions – reducing risK in tHe onLine enVironment

ProFiLe tracKinginteLLigent Fraud PreVention

the internet is undeniably a good place for business. However, for merchants, it can also be an unsafe and anonymous place. Particularly in the e-commerce industry, merchants can often face high losses due to fraudulent activities. For example: a user can attempt to place several orders in an online shop under various user names and addresses. in this case the usual risk management instru-ments are ineffective as they evaluate risks for existing users only, as the names and addresses of the fraudulent accounts are unknown, or in some cases, fake, the risk can only be identified after the user defaults on payment.

soPHisticated tracKing tecHnoLogies

arvato’s online device recognition solution enables organizations to fingerprint devices without relying on cookies and iP addresses, mitigating against online fraud and minimizing chargeback rates.

Within the solution, each individual device is identified by a fingerprint based on its unique characteristics. this fingerprint is then sent along with the transaction and is used in a risk check (similar to account blacklisting) to find out if the same computer was used to perform fraudulent transactions and, if so, is consequently rejected.

the tailored e-commerce industry specific solution features the structured exchange of experiences via hash id and offers unique and reliable identification with a high level of precision even without cookies; in total approximately 97% WeQ. in addition to a convenient web interface enabling smooth integration into existing workflows and processes, arvato’s profile tracking solution also provides a high degree of flexibility, via a versatile set of rules which can be customized to business requirements, delivering powerful results.

increased conVersion minimise chargeback rates, increasing conversion rate by up to 15%

reaL timeidentify the device and react in real time

secureautomatically implement device blacklist with one click

ProtactiX®

PLug and PLaY Fraud PreVention

protactix® minimises the financial losses and the damage to your image re-sulting from fraud and payment defaults for providers of digital services, such as video on demand, streaming, gaming, online advertising, music downloads, social networks, cloud computing and dating agencies. protactix® offers you a combined defence against fraud and other risks in one standardised, modular yet customisable solution that can be individually configured to meet your needs. all registration and ordering process transactions are checked and analysed to provide real time control and improve your conversion rate. as a plug-and-play solution, you can connect to protactix® and set it up within two days

HoW it WorKs

When your customer enters their personal registration or ordering information, protactix® determines the risks in real time, checking for fraud. in the process, protactix® not only identifies and analyses the details entered by the user, but also the details of the device they are using to access the internet using high-quality tracking technology, which complies with data protection laws.

the data gathered is run through a complex set of rules in the intelligent prot-actix® rules engine, and is also checked against arvato Financial solution’s broad, exclusive data universe. Positive and negative information from millions of transactions is utilised as part of the analysis and pattern recognition. the results of the check are supplied to the web shop, summarised as a recommen-dation of what action to take.

at the same time, all of the transaction data can be viewed from the protactix® cockpit. there, data can be manually edited and settings, thresholds and rules can be modified, activated or deactivated.

oPtimised QuaLitY oF customer dataPersonal data and email addresses are checked for plausibility and existence.

gLoBaL Protactix® has international reach

one-stoP Protection against Fraudintelligent identification of fraud and risk

Broadly based, high-quality and exclusive data on payment disruptions

digitaL account cHecK

simPLe Loan aPPLication - maXimum securitY

the german finance sector receives almost 25 million loan applications per year. However, in spite of a variety of optimisations in recent years, there has still been no fully automated process for processing these applications – until now.

HoW it WorKs

the digital account check makes the loan application process easier – both online and in the branch. the solution allows the applicant to submit the relevant documentation for the transaction digitally and in real time. this can now be done without any change in media – unlike the old process, which often involved printing out statements, sending them by post and digitising them in the bank where complex checks were performed. this often led to the procedure being cancelled partway through.

the data is now also checked and thoroughly analysed in real time. a recommendation is then provided based on this analysis, allowing you to make a quick, safe decision on whether to accept the application. Your customers will also thank you for granting their loan application so quickly.

FuLLY integrateddigital account check is a fully integrated solution that can be added to the website of the bank in question and tailored to the bank’s individual needs.

secure Loan decisions in reaL timein-depth, comprehensive analysis of credit rating and credit-worthiness

increased conVersion rateno changing between media

no need to digitise submitted documentation

access to digital account data

risKsHieLd 360°

detect Fraud Patterns automaticaLLY

the increasing pressure of competition and ongoing industrialization further reduce the scope for insurance companies. therefore, the handling of claims be-comes more and more important for insurance companies. in this context, one essential factor is to prevent insurance fraud

automated identiFication oF Fraud Patterns

With riskshield 360°, arvato Financial solutions and inForm gmbH carry out a comprehensive check of all data sources relevant in the event of a claim by us-ing various technologies, combining internal insurance data with arvato fraud-, credit history-and socio-demography pools in a “fuzzy” logic software.

depending on the result a routing is initiated to the corresponding group of responsible employees. riskshield 360° works with incriminating as well as exculpatory elements. therefore, not only suspicious claims are identified and forwarded to the fraud experts but also »quick claims« are identified and approved for settlement. this allows a more efficient handling of unsuspicious claims which therefore can be settled more quickly - leading to higher customer satisfaction.

automated soLutionautomatic claim evaluation and fraud risk assessment for more than 35 insurance companies

cost-saVingsrealization of considerable savings by a clearly improved discriminatory power for the detection of fraud patterns

gLoBaLPresent in 13 countries

arvato Financial solutions provides your customers with a stellar experience across all financial touchpoints.

arvato Financial Solutions – convenience in every transaction

finance.arvato.com/us