When Speed to Market Is Essential
The financial industry is rapidly changing, driven by new regulations, higher interest rates, a possible recession and non-bank businesses looking to get in the game. As an industry leader, Central Payments, which provides payments technology and issuing solutions for fintechFintech is a term used to describe financial technology. This often refers to the innovative use of technology to provide consumers and businesses with financial services. This can include banking, payments, investments as well as insurance services. Modern Fintech companies use digital platforms, data analytics and automation to offer an efficient and user-friendly solution to their clients. More and embedded finance businesses, is always looking for ways to quickly address challenges and take advantage of opportunities in the marketplace.
Founded in 2014 and headquartered in Sioux Falls, S.D., Central Payments offers its open*CP FintechFintech is a term used to describe financial technology. This often refers to the innovative use of technology to provide consumers and businesses with financial services. This can include banking, payments, investments as well as insurance services. Modern Fintech companies use digital platforms, data analytics and automation to offer an efficient and user-friendly solution to their clients. More API Marketplace as one of the only true Banking-as-a-Service (BaaS) payments platforms with issuing capability embedded. BaaS has increasingly gained traction over the last couple of years as fintechs and other non-bank organizations increasingly look for ways to operate in the banking space without going through the complicated process of acquiring a charter. It’s a way for banks to white label their regulated banking services (such as payments, financing, credit cards, etc.), and deploy them through a third party that manages the front-end customer experience.
Central Payments recently announced a $30-million growth equity raise to further accelerate its rapid growth trajectory, so getting its programs to market and earning revenue became two key drivers.
“We’re focused on shortening our speed-to-market timeframe, working with our partners on functionality that can set their products and programs apart,” said Heather Schumacher, COO and executive vice president at Central Payments. “Our business model demands that we keep up with what’s going on in the world in order to help people get their money faster. That means having access to real-time data quickly along with the ability to normalize that information and analyze it across platforms is an imperative.”
Centrals Payments uses multiple, different processors—all with different codes, statuses and parameters to identify—so getting data to match up across platforms became a huge focus. It was needed not only for reporting, but also for Bank Secrecy Act/Anti-Money Laundering (BSA/AML) monitoring and complianceCompliance is used to refer to the adherence to laws, regulations and industry standards within a specific business or financial context. Compliance can involve implementing policies and procedures to ensure that an organisation and individuals within an organisation operate within legal as well as ethical boundaries. More reviews.
“Initially, we were pulling and analyzing reports manually,” said Schumacher. “We would use reporting from the different processing platforms, but the information was very specific to the processors. We were using another tool for our BSA/AML monitoring that was simply not cost effective. The data would be delivered in a text file that we’d still have to upload into a spreadsheet to review. Again just a very tedious process.”
In order to scale to meet demand, Central Payments turned to DataSeers for automated solutions that would help deliver data quicker, normalize it across platforms, and provide a central repository where the BSA/AML team could easily review information and reports.
More Reliable Alerts, Better Fraud Protection and Accessible Reporting
Central Payments, working in partnership with DataSeers, has been able to scale and grow business the way it has planned. “DataSeers’ solutions in combination with the customization we needed has helped us get to where we need to be. It’s been a very good relationship since the start,” said Schumacher. Central Payments has been most impressed with DataSeers’ BSA/AML alerts and reporting capabilities. The company is also extremely relieved that it didn’t need to devote additional resources or hire more staff to build any tools in house. “It’s mind boggling to see the large number of false positives we were getting while manually conducting the BSA/AML monitoring,” Schumacher said. “With DataSeers, we increased our accuracy by 32 percent and were able to decrease the number of alerts by almost 68 percent because of our new-found ability to quickly adjust levers and remove false-positive alerting. We have not had to add staff to the BSA area as we’ve added programs because of the lift DataSeers is giving us.” Among the additional benefits the DataSeers’ solutions have provided:- Filing Suspicious Activity Reports (SARS): The whole process from when Central Payments gets an alert to when it files an actual report is very comprehensive. Analysts and investigators now have quicker access to the necessary data for the required reporting—all in one place.
- Shorter training: Central Payments has many procedures that are repeatable. New hires can now come in, and within a couple weeks, can be up and performing their jobs with success. Previously, staff would spend a long time sitting side by side with their colleagues to learn the different ways to review data that was in spreadsheets.
- Better fraudFraud is defined as a deliberate and deceptive act carried out with the intent to gain an unfair or unlawful advantage. Fraud is mostly associated with deceit, misrepresentation or concealment of information in order to gain a financial advantage and personal gain. The term fraud encompasses a wide range of dishonest activities, including but not limited to creating false statements,… More detection and prevention: Central Payments is more dialed in on fraudFraud is defined as a deliberate and deceptive act carried out with the intent to gain an unfair or unlawful advantage. Fraud is mostly associated with deceit, misrepresentation or concealment of information in order to gain a financial advantage and personal gain. The term fraud encompasses a wide range of dishonest activities, including but not limited to creating false statements,… More and has gained more confidence that its programs are working as expected. Recently, it was able to identify a BIN attack on one of its programs within 48 hours. As a result, Central Payments was able to quickly shut down the affected merchants and then take the necessary steps to mitigate any negative outcomes from the attack.
- ComplianceCompliance is used to refer to the adherence to laws, regulations and industry standards within a specific business or financial context. Compliance can involve implementing policies and procedures to ensure that an organisation and individuals within an organisation operate within legal as well as ethical boundaries. More with fees: The number and amount of fees seem to be in a constant state of flux. Central Payments now has real-time insight into any amounts that go outside of the standard fees by automatically triggering alerts, which in turn activate a review.
““DataSeers was very appealing because of how much work it was doing specifically for BSA/AML complianceCompliance is used to refer to the adherence to laws, regulations and industry standards within a specific business or financial context. Compliance can involve implementing policies and procedures to ensure that an organisation and individuals within an organisation operate within legal as well as ethical boundaries. More. At the time, we had a small IT staff, so there were not a lot of resources to even build out a comparable data tool. Additionally, the fact that DataSeers offered ancillary services for reconciliation and reporting was very appealing to the executive team at the time.”
—Heather Schumacher, COO and executive vice president at Central Payments
A Multi-Faceted Financial Data Enterprise Solution
Before selecting DataSeers, Central Payments evaluated a number of different data tools, but they were expensive and involved long integrations. That was a path Central Payments did not want to go down.
“We learned about DataSeers through a referral and then conducted a lot of own due diligence,” said Schumacher. “DataSeers was very appealing because of how much work it was doing specifically for BSA/AML complianceCompliance is used to refer to the adherence to laws, regulations and industry standards within a specific business or financial context. Compliance can involve implementing policies and procedures to ensure that an organisation and individuals within an organisation operate within legal as well as ethical boundaries. More. At the time, we had a small IT staff, so there were not a lot of resources to even build out a comparable data tool. Additionally, the fact that DataSeers offered ancillary services for reconciliation and reporting was very appealing to the executive team at the time.”
Central Payments uses the different solutions within DataSeers’ main portal: ComplianSeer (complianceCompliance is used to refer to the adherence to laws, regulations and industry standards within a specific business or financial context. Compliance can involve implementing policies and procedures to ensure that an organisation and individuals within an organisation operate within legal as well as ethical boundaries. More with regulations), FraudSeer (fraudFraud is defined as a deliberate and deceptive act carried out with the intent to gain an unfair or unlawful advantage. Fraud is mostly associated with deceit, misrepresentation or concealment of information in order to gain a financial advantage and personal gain. The term fraud encompasses a wide range of dishonest activities, including but not limited to creating false statements,… More detection and prevention), StrataSeer (predictive analytics and reporting), ReconSeer (speed in reconciliation), NachaSeer (ACH processing) and IdentitySeer (know your customers).
When DataSeers first came on board, Central Payments had four systems integrated into the new data tool. Since then, Central Payments has added three more systems and is now directing its Automated Clearing House (ACH)An electronic network that coordinates automated money transfers and electronic payments. It is a way to move money between banks without using wire transfers, paper checks, card networks, or cash. An automated Clearinghouse (ACH) is a system that makes it possible to do electronic money transfers and payments between banks and financial institutions. ACH transactions are commonly used for direct… More files in there. Add in all the customer files, and Central Payments is feeding data into the DataSeers’ solutions from 10 different systems.
According to Schumacher, the DataSeers’ team was very flexible and accommodating throughout the implementation, not only navigating all the moving pieces associated with integrating the different systems, but also understanding that Central Payments still needed to grow its business during the process.
“We are now using the DataSeers’ solutions enterprise wide,” Schumacher said. “They are some of our most strategic tools. For example, when we have new-employee orientation, we dedicate an entire hour to data theaters just to show them how we use it—and how it will affect their work areas. DataSeers is making an impact all the way from finance to complianceCompliance is used to refer to the adherence to laws, regulations and industry standards within a specific business or financial context. Compliance can involve implementing policies and procedures to ensure that an organisation and individuals within an organisation operate within legal as well as ethical boundaries. More to fraudFraud is defined as a deliberate and deceptive act carried out with the intent to gain an unfair or unlawful advantage. Fraud is mostly associated with deceit, misrepresentation or concealment of information in order to gain a financial advantage and personal gain. The term fraud encompasses a wide range of dishonest activities, including but not limited to creating false statements,… More and settlementThe movement of funds from one financial institution to another, which ultimately completes a transaction. More.”
More Reliable Alerts, Better FraudFraud is defined as a deliberate and deceptive act carried out with the intent to gain an unfair or unlawful advantage. Fraud is mostly associated with deceit, misrepresentation or concealment of information in order to gain a financial advantage and personal gain. The term fraud encompasses a wide range of dishonest activities, including but not limited to creating false statements,… More Protection and Accessible Reporting
Central Payments, working in partnership with DataSeers, has been able to scale and grow business the way it has planned. “DataSeers’ solutions in combination with the customization we needed has helped us get to where we need to be. It’s been a very good relationship since the start,” said Schumacher.
Central Payments has been most impressed with DataSeers’ BSA/AML alerts and reporting capabilities. The company is also extremely relieved that it didn’t need to devote additional resources or hire more staff to build any tools in house.
“It’s mind boggling to see the large number of false positives we were getting while manually conducting the BSA/AML monitoring,” Schumacher said. “With DataSeers, we increased our accuracy by 32 percent and were able to decrease the number of alerts by almost 68 percent because of our new-found ability to quickly adjust levers and remove false-positive alerting. We have not had to add staff to the BSA area as we’ve added programs because of the lift DataSeers is giving us.”
Among the additional benefits the DataSeers’ solutions have provided:
- Filing Suspicious Activity Reports (SARS): The whole process from when Central Payments gets an alert to when it files an actual report is very comprehensive. Analysts and investigators now have quicker access to the necessary data for the required reporting—all in one place.
- Shorter training: Central Payments has many procedures that are repeatable. New hires can now come in, and within a couple weeks, can be up and performing their jobs with success. Previously, staff would spend a long time sitting side by side with their colleagues to learn the different ways to review data that was in spreadsheets.
- Better fraudFraud is defined as a deliberate and deceptive act carried out with the intent to gain an unfair or unlawful advantage. Fraud is mostly associated with deceit, misrepresentation or concealment of information in order to gain a financial advantage and personal gain. The term fraud encompasses a wide range of dishonest activities, including but not limited to creating false statements,… More detection and prevention: Central Payments is more dialed in on fraudFraud is defined as a deliberate and deceptive act carried out with the intent to gain an unfair or unlawful advantage. Fraud is mostly associated with deceit, misrepresentation or concealment of information in order to gain a financial advantage and personal gain. The term fraud encompasses a wide range of dishonest activities, including but not limited to creating false statements,… More and has gained more confidence that its programs are working as expected. Recently, it was able to identify a BIN attack on one of its programs within 48 hours. As a result, Central Payments was able to quickly shut down the affected merchants and then take the necessary steps to mitigate any negative outcomes from the attack.
- ComplianceCompliance is used to refer to the adherence to laws, regulations and industry standards within a specific business or financial context. Compliance can involve implementing policies and procedures to ensure that an organisation and individuals within an organisation operate within legal as well as ethical boundaries. More with fees: The number and amount of fees seem to be in a constant state of flux. Central Payments now has real-time insight into any amounts that go outside of the standard fees by automatically triggering alerts, which in turn activate a review.
In the future, Central Payments is planning to explore more of the tools related to ACH processing as well as working with DataSeers on getting some connections into VISA and MasterCard so that it can potentially get reporting from those networks directly.
According to Schumacher, “We very interested in partnering with DataSeers on anything that can give us real-time functionality. After all, that’s the name of the game if Central Payments is going to continue to leadAny potential consumer from whom a business has contact information, or a confirmed site/profile interaction More the industry in terms of programs and services that help people have a better financial experience.”
