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The underwriting process for merchants, especially those who are new to the space, has been anything but easy. Merchant onboarding applications involve the tedious collection of paperwork and process of getting accounts approved. But in today’s digital world, automated underwriting technology can be used to speed up the process, provide better data, and ultimately help banks and other financial institutions make better decisions. At the same time, it extends payments to micro-merchants who may have otherwise not been eligible. On Tuesday, July 8th, MPD’s CEO Karen Webster hosted a live digital discussion with Recombo’s Reed Clayton, Vice President Electronic Payments and Banking, and Peter Fitzpatrick, author of the “Ultimate Guide to Automated Merchant Boarding,” to highlight how automated underwriting molds a quicker, safer, and less costly merchant onboarding process. This discussion covered: - How to build a digital application, automated workflow, and risk scorecard to process merchant applications faster while maintaining proper risk levels and anti-fraud requirements - How to increase your adherence to compliance regulation.
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Taking the Pain (and Risk) Out of Merchant Onboarding
Tuesday, July 8th, 2014
Presenters & Host
Reed ClaytonVP ePayments & Banking
Recombo
Peter FitzpatrickAuthor
Karen WebsterCEOMPD
POLL
At your organization, how long does it take to board the average merchant?
– Under an hour– Hours– Days– Weeks– I’m not sure
3-5 Days
Square Stripe PayPalTraditional Acquirer
5 minutes 5 minutes 5 minutes
Merchant Boarding Timeframe
POLL
At your organization, how much does it cost to board a merchant?
– Less than $50– Between $50 - $200– More than $200– I’m not sure
Merchant Boarding Cost Per Merchant
Software companies have disrupted merchant acquiring
Beat the disruptors:
Provide the same experience without compromising adjudication standards
Use automation to do the same adjudication you do today, in less than 15 minutes
How to beat the disruptors
Automate your boarding process1. Build digital applications
2. Build a rules-based engine
3. Build a risk scorecard
Take a risk-based approach to adjudication4. Determine high, medium, and low risk
products
5. Determine high, medium, and low risk regions
Mistakes identified working with the world’s largest acquirers 1. The one trick pony: Building product-
specific boarding processes that can’t be scaled across verticals, product lines and regions
2. Being too dependent on the development team: Digital applications that aren’t flexible enough to be managed by the business unit
Build or Buy?
• Build in house• Requires process & technology expertise• Commonly run over budget and over time• Can make mistakes noted previously
• Specialized technology on the market• Agreement Express: rapid customer
onboarding platform• IBM or Oracle: BPM platforms• Many point solutions that can be combined
POLL
What is your organization’s biggest pain point related to merchant boarding?
– Time to board– Cost to board– Scalability of process or team– Inconsistent risk adjudication or compliance
standards– None of the above
POLL
How does your organization prioritize the pursuit of a solution?
– High: we’re looking to solve it now– Medium: we’ll be working on it over the next
12 months– Low: we’ll address it sometime in the next 12
– 18 months– Very low: it’s not on the radar
Check your email shortly for your free copy:
The Risk Executive’s Guide to Automated Underwriting
Thank You for Attending
Questions?Type your questions into the chat panel.
Reed ClaytonVP ePayments & Banking
Recombo
Peter FitzpatrickAuthor
Karen WebsterCEOMPD
