Genome is an online finance ecosystem that helps merchants from 40 European-based countries accomplish everything related to payments online. The company was founded in 2018 and legally registered as UAB “Maneuver LT”.

Being a licensed Electronic Money Institution, Genome serves online marketplaces, e-commerce, SaaS, software companies and any business working with online payments. Because the online payments niche requires a superior level of risk assessment and fraud prevention, anti-fraud solutions are very central to their business.

Hence, Genome, envisioned by its founders and the team as a “product of the future”, strove to implement an innovative approach while selecting a third-party service provider that would help to ensure responsibility and payment security. The objective of the innovative implementation was to automate the traditional, and in most cases, manual internal banking processes touching users directly.

Launched on 14 March 2016, global risk management and fraud prevention platform Covery made a first-of-its-kind integration (meaning integration with online banking) with Genome in 2018. The requirements of Genome were not complex but demanded a fresh technological take on a solution in risk management and fraud detection.

Key services of Genome are merchant account opening, IBAN settlement, SEPA transfers, cross-border payments in multiple currencies, currency exchange and online acquiring. All of them require that users pass the KYC procedure first. Traditionally, the KYC procedure in banks is manual, time-consuming and results in huge operational costs. Covery brought Genome a totally automated KYC procedure, divided into KYC profile and KYC submit stages, enabling Genome to open personal accounts and IBANs, as well as business accounts and IBANs.

As a part of AML flow, the KYC procedure passed by the user ensures their non-presence in PEPs lists. The sore point of most payment service providers and banking entities here is the need for third-party integration with PEPs list providers. Covery enabled Genome to avoid this pain. The platform collaborates with Dow Jones – the global leader in data intelligence for anti-money laundering, anti-corruption, economic sanctions, third-party data and commercial risk. Thus, the PEPs list check is already included in Covery’s features.

In view of constant PEPs list updates, the Covery platform checks Genome users at their every action automatically in as fast as one second. Covery also applies the check of the user through the global reputation data network called Trustchain. At the moment Trustchain contains more than 27 million device reputation records gathered with device fingerprinting technology.

The rule-based and machine learning models of Covery are fully customisable and were easily applied to Genome’s risk logic. On top of that, data gathered during Covery’s KYC procedure helps Genome to create an overall evaluation of users and is used both for more precise and fast fraud prevention as well as revenue increase in the future.

The key benefits achieved include:

1. Time and cost savings: Automatisation of KYC procedure canceled the need for manual and time-consuming work. Less time spent on each user verification leads to lower user
acquisition costs.

2. Increased CLV: Fast KYC procedure helped to increase customer retention and satisfaction rate and, thus, increased customer lifetime value.

3. High data accuracy: Automating KYC removes the risk of human error. Use of device fingerprint scanning detects risks and fraud patterns in a matter of seconds.

4. Reduced risks with complete customization: In addition to automated KYC procedure, Genome obtained fully customizable risk management platform using rule-based and ML approaches.

5. Global reputation data network: PEPs list check is now combined with users check in Covery’s global reputation data network Trustchain.

The implementation resulted in a 90% efficiency in KYC procedure automation and increased conversion rates.

Online financial solution: Genome
Solution implemented: Covery
Services: KYC procedure automation, Device Fingerprinting, Trustchain
Timeline: 3 months

by IBS Intelligence