Our Global Footprint

Comcorp is a specialist FinTech company that has over the past twenty-one years:
  • Developed secure bank grade software platforms
  • Concluded five significant deals including three of its platforms bought out by listed companies and bank consortiums
  • Secured a contract to operate Secure-X the inter-lender platform of secure exchange between all major lenders in South Africa
  • Concluded two additional Secure-X country licence deals for the UK and Australia
  • And are actively seeking new country partnerships.
Secure-X is a platform which enables banks and lenders to request and receive authenticated documentation and data such as Bank Statements, Pay Slips, Utility Bills and Company Registration Documents.
These authenticated documents are used by lenders to verify an applicant’s income, expenses, affordability, and employment status in real time.
Secure-X has been adopted as the industry standard in South Africa following go-live in 2012 and is currently used by 37 lenders including banks, credit providers, retailers and MNO’s. Secure-X eliminates the pain points of applicants for credit being sent away to source original documentation in order for lenders to authenticate their lending decision.
Secure-X comprises three modules which operate on the Secure-X chassis:
  • Statement Exchange: Proof of income, expenses and affordability.
  • IVX: Sourcing of payslips providing proof of income and employment and showing how the income is structured.
  • AML-X: Proof of residence for individuals via a utility bill or Digital Satellite TV bill and Proof of Registration for Juristics via a CIPC (Companies and Intellectual Property Commission) certificate.
  • All modules source virgin data in real time using our tamperproof system which maps data into lender systems.
  • Secure-X methodology ensures your data source is pre authenticated, delivering an encrypted, trusted payload.
The process delivers AML (anti-money-laundering) and MMR (Mortgage Market Review proof of affordability) encrypted documentation into lender systems.
Recent record fines to lenders for non-compliance and tighter lending legislation has increased bank adoption of Secure-X to source lending data.
Your Customer on-boarding journey is vastly improved and sped up because customers’ are not sent away to source pay-slips or bank statements and paper based utility bills, all inefficient activities which increase applicant fatigue and deal fall-off.
Simply stated, Secure-X increases a lenders applicant conversion ratio, decreases applicant stress, lowers process costs and underpins every transaction with an audit trail, delivering real time process efficiency.
Secure-X has been packaged into a documented Blueprint for rapid implementation into lenders and new markets.
Lenders connect to Secure-X via a secure single API to request and receive real time data. Comcorp is pursuing partnerships in selected international markets in which to replicate it’s inter-bank platform success.

Overview for UK Market

Comcorp has concluded a deal for the UK market. Statement Exchange is the fastest, most secure way to exchange bank statements and qualify an applicant’s financial status. It enables a bank to improve customer service by facilitating the exchange of statement information digitally.

How does Statement Exchange operate?

Statement Exchange is an inter-bank transactional platform which enables the secure exchange of a customer’s current account bank statements (exchanging encrypted data, meta-data and images) between lenders in real time.
Statement Exchange is bureau agnostic, with data being shared reciprocally under the governance of a closed-user group comprising of participating banks.
The Statement Exchange facilitates income/affordability evaluation, as well as provenance checks at the point of application by enabling electronic access to consumers’ bank statement details at a transactional level.
Its principal objective is to provide lenders with a better understanding of a customer’s financial circumstances at the point they apply for a loan. This helps the lender understand the risk associated with the loan and ensures they can provide a product which is more accurately tailored to the needs of the customer.

How does the process work?

  1. A lender (namely the Requesting Bank) wanting to lend to a consumer gets permission from the consumer to do a search on their bank accounts. Sourcing applicant permission is embedded in the application process and is separate from applicant authentication or verification (KYC). It is important to separate the authentication of the applicant from authenticating their lending data.
  2. The consumer supplies their sort code / account number(s) for these accounts to the lender.
  3. The lender then requests the customers “statements” via a secure web service call to Statement Exchange.
  4. Statement Exchange then requests the statement detail from the Disclosing Bank.
  5. The customer’s statement details are provided back to the lender to help evaluate the customer’s financial circumstances as part of approving their application for finance.
Statement Exchange is an electronic version of asking an applicant to provide their last 6 months statements to a lender when they apply for finance.
Statement Exchange is hassle free for the customer as well as instant and secure for the bank.

Case Studies

Statement Exchange has been operational in South Africa for five years.
It is used by all major banks and other lending institutions to source statements in real-time. The following cases studies illustrate the benefits achieved in the South African market.

Compliance

A husband who had a joint current account with his wife applied for a loan and ticked the consent box on behalf of his wife without consulting her. Applicants are instantly notified of their statements being released. Clever use of the ‘Disclosing Bank’ applicant primary contactability preference, notifies the customer of the release of their statements to the ‘Requesting lender’.
This application triggered the SMS alert function in the Statement Exchange process which was sent to both the applicant and his wife notifying them of:

  • The details of the loan application (for a new luxury German sports car).
  • The bank at which the loan application was submitted.
  • The product house providing the loan i.e. Bank XYZ vehicle finance.
  • The escalation process, contact details for queries and a loan reference number.

The applicant’s wife challenged the loan application which triggered Statement Exchanges interbank dispute notification. Confirmation of the loan was stopped whilst the wife’s consent was acquired and the husband was appropriately chastised by his spouse.

Regulation

Mortgage Market Review (MMR) and mortgage lending legislation is extremely strict in South Africa. Assessment of affordability by evaluating income and proof of employment is mandatory. All supporting documentation must be sourced, validated, considered and stored for reference. Every set of statements sourced via Statement Exchange is automatically compliant. An audit trail logs every request, and the documents assist in authenticating the identity and financial status of the applicant. Statement Exchange is capable of simultaneously sourcing statements from multiple banks against an applicant and co-applicant to ensure a 360-degree assessment of the customer is achieved.

Fraud Prevention

SMS alerts provided by Secure-X have improved applicant authentication and help prevent fraud.

A fraud syndicate submitted a loan application using false documentation for a new Mercedes Benz (vehicle) with two banks on the same day. The real account holder was alerted by Statement Exchange’s SMS notification and the account holder was able to dispute the loan application. The dispute immediately triggered the inter-bank escalation process which notified the Requesting Banks, one of which had released the vehicle to the fraudsters. The applicants were arrested before the loan was disbursed and the car was recovered the same day.

Exchange members agree to a two-hour interbank escalation process on suspected fraudulent disputes. Comcorp manages the interoperability protocols via a support system and constitution (Terms of engagement) which our members jointly participate in formulating and agreeing to.

Business Efficiency

Statement Exchange shaves days off the loan application process, by sourcing an applicant’s documents instantly. Mortgage processing divisions at banks in South Africa have experienced a reduction in the volume of rejected applications.Banks indicate this higher conversion rate is due to:

  • The bank can provide a quote immediately whilst customer is still keen to proceed with the application.
  • Applicant stress and delays in processing loans are directly proportional to the volume of ‘walk-aways' by customers.
  • Inbound documents always conform to the highest standards, so the statement is legible, recent (up-to-date) and since the documents are not subject to tampering, it accurately reflects the customer’s current financial circumstances.

High Net-Worth Customers

High net worth customers at private banks in South Africa have expressed their appreciation at the simplicity and security of the streamlined application process delivered by Statement Exchange. These customers no longer have to source and disclose their paper statements to counter staff at the bank or broker. Statement Exchange delivers information discreetly and securely into the application process.

Benefits to you and your customers

Speed

Using paper based statements is time consuming and prone to error. Mortgage applications can take up to 100 days to process which is frustrating for customers and undermines your service. Adopting electronic processing means you can request the statement immediately at the point of application. Information can be received in seconds reducing approval time and increasing the potential to convert customers quickly.

Better decision making

Real-time access to a customer’s accounts (even the accounts held at banks other than your own) provides you with insight into a customer’s financial status and their ability to repay a loan. Customers receive a better service whilst you confirm affordability and demonstrate regulatory compliance.

Fraud protection

Paper-based statements are easy to manipulate or falsify. Statement Exchange offers a secure alternative at a time when bank statement fraud is increasing, house prices are rising and consumers seek to borrow more than they can potentially afford.

Savings

Processing paper based bank statements is costly, inefficient and we will not be on boarding customer’s with paper statements in twenty years’ time. So we ask the question as to how lenders can digitise the process now. Statement Exchange digitises this slow, manual process, reducing operating costs and increasing the number of applications you can potentially approve.

Streamlined customer experience

Statement Exchange aligns loan applications to the digital journey. It also protects consumers from exposing secure log-in credentials to third party ‘screen-scraping’ software that promise to plug the gap in the digital experience.

Customer friendly

Customers are no longer comfortable being sent off to collect authenticated original copies of statements, and then disclosing their paper based statements to bank clerks.
Statement Exchange is about protecting your customers while providing a faster, seamless application engagement experience. Full disclosure means an individual will always be asked for their consent before their current account information is accessed. This is reaffirmed with a confirmation SMS text message which customers appreciate.

For further information, contact Richard Moss at rmoss@comcorp.co.za or +(44) 7447 596 825.