FINTRAIL helps a globally expanding neobank to achieve a thorough understanding of its risk profile and improved customer due diligence and risk rating models
Context
Nubank is a Brazilian bank - the largest neobank in the world in terms of market capitalisation, with over 45 million customers in Brazil, Mexico and Colombia. As part of its international build-out, it engaged FINTRAIL to complete an enterprise-wide risk assessment (EWRA) and review its KYC and customer risk assessment processes in Brazil and Mexico, encompassing the regulatory requirements in each country.
Solution
Conducting an enterprise-wide risk assessment
FINTRAIL conducted an enterprise-wide risk assessment (EWRA) of Nubank’s operations in the two markets, and produced an EWRA template and user guide for Nubank to update the risk assessment going forward.Reviewing existing KYC and customer risk assessment processes
We then conducted a comprehensive review of Nubank’s existing KYC and customer risk assessment processes, as well as Mexican and Brazilian regulations. We provided a set of recommendations for new, refined customer risk assessment models for each country, and new risk-based customer due diligence programmes aligned to these models. Each set of recommendations confirmed with local regulatory requirements and industry best practice.
Outcome
✓ Improved customer due diligence and risk rating models, tailored to specific geographies, regulatory requirements and Nubank’s unique risk profile
✓ Nubank gained a thorough understanding of its risk profile, enabling it to design suitable, effective controls
Why FINTRAIL?
FINTRAIL’s breadth of work with leading financial innovators is unparalleled. We have assisted some of the world's most innovative financial service providers operating across six continents to develop and accelerate new products to market and address complex compliance challenges.
We have conducted numerous regulatory mapping and KYC projects, balancing the design of agile processes and smooth customer experience with regulatory obligations and group policy, and managing diverse stakeholders’ expectations.
We design nuanced, bespoke programmes based on each client’s specific offerings, customer base, and risk profiles to avoid overly simple solutions or generalisations. We challenge conventional wisdom to identify meaningful ways to assess risk and design effective processes.
We enable organisations to thrive while managing their financial crime risk and meeting regulatory requirements, by considering their commercial and regulatory needs.