The bank-centric Identity Trust Framework
Jul 03, 2015
The bank-centric
Identity Trust
Framework
FACTSPPI
Who we are
Prime supplier of cash management and accounting SW for >$20B of family assets
50 yrs. servicing HNW community in 2015
Full service bank – 158 Years – $6B
Among top banks in profitability
Out-of-Band-Authentication patents
Serving 3 of top 5 eCommerce brands
and >20 of the top 40 banks
Large payout network in Latin America
Ground-breaking payee benefits
Proven
VIRAL
COMPLIANT
OPERATING
SIMPLE
NORTH AMERICA
NORTHAMERICA
NORTH AMERICA
Problems
Who's my identity bureau on the Internet?
Bank
A
Bank
C
Bank
B
ACH, IBAN & Debit Nets
ATM
BankCards
Cash
Checks
Who's willing to vouch for me to third parties?
What does a bank need from me so I can get started?
Yes
No
BankRegistered?
accelerates migration to electronics by lowering
transaction risk
On-Bank
Off-Bank
Security level
High
Low
$50B
$16B
$ 9B
High Transfer cost Low
High Value Payments Small Value Payments
Traditional Payment Nets Internet Mobile
> $1,000✓ < $1,000
Gaps
Protected
Solution
Public deposit-only epayment addresses
Only accredited entities can register participants
Registry NEVER knows final destination account numbers
An Identity Attribute Registry
Solution
Security enhanced by eliminating intermediaries
Public Attributes
Greenlist® provides:– Consumers’ highest level of account security
– Legal protection with consumer “opt-in”
– Support for consumer privacy
– Faster deposits and quicker access to cash
Private Attributes
Public Identifiers Routable, Publicly Discoverable ePayment Addresses Privacy Protection
Name Customer and/or Bank Supplies a.k.a. UPIC or LCA-ACH Bank Account Number
City Proxy and/or VISA Supplies "Masking/Tokenized" PAN Personal Account Number "PAN"
Mobile Phone Number 1-630-880-0873 071000505 - 1348098709071000505 - 1344230947
Nickname: "MyGreenlistID" (Next Banking Day)Receiver’s Greenlist ID [email protected] 123456-123456789012-1
123456-493847605942-4(International: Linked Sender’s Greenlist ID) P-24-0598234-059843 (Instant Class of Service)
Relying Parties only receive PII that consumers wish to
have divulged about themselves
Global reach
JAPAN
PHILIPPINES
PAPUA
NEW GUINEA
AUSTRALIA
NEW
ZEALAND
UNITED STATES
OF AMERICA
CANADA
ALASKA (USA)
MEXICO
COLOMBIA
VENEZUELA
BRAZIL
PERU
BOLIVIA
HONDURAS
NICARAGUA
ECUADOR
GUYANA
SURINAME
FRENCH
GUIANA
COSTA RICA
PANAMA
GUATEMALA
CUBA
PARAGUAY
ARGENTINA
URUGUAY
CHILE
GREENLAND
ICELAND
REPULIC OF
IRELAND
NORWAY
SWEDEN
FINLAND
DENMARK
ESTONIA
LATVIA
LITHUANIA
POLAND BELARUSGERMANY
CZECH
REPUBLIC
NETHERLANDS
BELGIUM
FRANCE
SPAIN
PO
RT
UG
AL
SWITZ.
AUSTRIA
SLOVAKIA
HUNGARY
ROMANIA
BULGARIA
ITALY
UKRAINE
TURKEYGREECE
SYRIA
IRAQ
SAUDI
ARABIA
YEMEN
OMAN
UAE
EGYPTLIBYA
ALGERIA
MOROCCOTUNISIA
WESTERN SAHARA
MAURITANIA
MALI
NIGER CHAD
SUDAN
ETHIOPIA
SOMALIAUGANDA
SENEGAL
GUINEA
LIBERIA
COTE
D’IVOIRE
BURKINA
GHANA
NIGERIA
CAMEROON
CENTRAL
AFRICAN REPUBLIC
GABON CONGO
DEMOCRATIC
REPUBLIC OF
CONGO
KENYA
TANZANIA
ANGOLA
ZAMBIA
NAMIBIA
BOTSWANA
ZIMBABWE
REPUBLIC
OF SOUTH
AFRICA
MADAGASCAR
RUSSIAN FEDERATION
KAZAKHSTAN
GEORGIA
IRAN
UZBEKISTAN
TURKMENISTAN
AFGHANISTAN
KYRGYZSTAN
TAHKISTAN
PAKISTAN
INDIA
CHINA
NEPAL
MYANMAR
THAILAND
SRI
LANKA
MONGOLIA
NORTH
KOREA
SOUTH
KOREA
TAIWAN
CAMBODIA
LAOS
VIETNAM
MALAYSIA
INDONESIA
UK
Target Countries for Licensing
BANCwire License Coverage
Patents Issued
Source:
Patent and license coverage
Patents Pending
Business Model
• User-asserted Privacy Preferences
• Hardware-authentication Linkage
• IDP provenance and liability for registrant data
• Transaction-based income for Identity Providers (IDPs)
• Based on revenue share of Relying Party fees
• Authoritative Parties deploy sub-root registries that are synchronized
• RP click fees logged, reported, aggregated
• Open Systems Architecture – API
Unique qualities of Greenlist Business Model
PAIN
SMALL BUSINESSES Cashiers checks inconvenient & exposed
to ACH and check fraud, International ACH has issues
Non-bank alternatives expensive
40% SMBs do not accept plastic
BANKS Card compromises nightmare
Cashiers checks issuance & processing $
Counterfeit fraud losses
Customer loss to instant payment banks
BANKS Earn fee new income
Turn regulatory burden into revenue
Very little capital required
Trademarked service enhances brand
SMALL BUSINESSES Reduce check & ePayment fraud
Save money
Faster more convenient access to cash
Eliminate card compromises
BENEFITS
CONSUMERS Digital Noise – Coupon Spam
Privacy concerns – Facebook Fatigue
Too many useless mobile apps
CONSUMERS Apps that “watch your back”
Save money & faster access to cash
Eliminate privacy compromise
Answers
PUBLICLYDISCOVERABLE
ePAYMENTADDRESSES!
Why
MANY REASONSWHY WE NEED
Paypal & Western Union
Profits
Banks’
Non-InterestIncome
Electronic payroll
deposits to banks
The CFPB challenges banks to do
better
BACKGROUND
REASONS
Opportunity
FFIEC
LAYERED
WANTS
PROTECTION
Regs drive banks
1
DODD-FRANK 1073
IDENTITY
REQUIRES
PROOFING ANDTRANSPARENCY
US regs lead
1
NOW BANKS
THEIR KYC
MONETIZE
INVESTMENT
Banks crave NII
1
WHATCUSTOMERS
ACTION
BANKS NEED TO TELL
TO TAKE
Sell services
BANKS
EARNYOU THE MOST MONEY
WHEREVER, WHENEVERHOWEVER YOU SHOP
Message
SIMPLE
IDEASLIKE
REBATES
Why we care
2
RECEIVE
MONEYTRUSTEDDIRECTLY TO YOUR
BANK ACCOUNT
Message
DATA
PLUSUSE
= SECURITY
MINIMIZATION
LIMITATION
How
3
BANK-CLASS
IDENTITYSAFEGUARDS
PROTECT YOU
BY DESIGN
Best of breed
4
BANKSAT THE CENTEROF CUSTOMERS’FINANCIAL LIVES
When if not now?
5
GREENLISTKEEPS
Income for Identity Attribute Providers
Governments: systemic compliance– Identity verification and AML reporting
– Correlated transit activity
– Correlated Foreign Exchange activity
Banks: increase Non-Interest Income (NII)– KYC leveraged as competitive advantage
– Improved ROA of Payment Networks
– CRA Credits earned
– Reduced Relying Party Risk
Summary
Globally consistent identity trust agreements
IdentityAttributeProvider
RelyingParty
TrustTrust
Consumers: a safer way to pay– Security and privacy protection by design!
– Actual Account numbers NEVER disclosed to merchants or networks
– Rebates paid instantly when consumers purchase certain goods and services
Merchants: instant loyalty reward delivery– No systemic chargebacks
– No repudiation due to lack of authorization
– Increased shopper frequency and spend
For more ways to harness the power of Greenl ist ® to create world-changing ident ity appl icat ions based on bank trust, visit : www.paymentpathways.com
312-346-9400