10x Faster, 85% Automated: Pomelo's Data-Driven Approach to Risk Management
Learn how Pomelo leveraged Effectiv's real-time risk management solution to streamline operations, prevent fraud, and strengthen AML compliance.
10x Faster, 85% Automated: Pomelo's Data-Driven Approach to Risk Management
Learn how Pomelo leveraged Effectiv's real-time risk management solution to streamline operations, prevent fraud, and strengthen AML compliance.
Use Cases
- Customer Onboarding
- Payment Fraud
- AML Transaction Monitoring
- Case Management
- San Francisco, CA
- Fintech
Challenge
Onboarding Woes and Manual Processes
In the early stages, Pomelo grappled with manual onboarding processes, relying on hard-coded workflows that proved time-consuming, frustrating, and complex. Alora Calcagno, VP of Operations, highlights the challenges faced in manually coding onboarding flows, leading the company to explore alternative solutions, stating “We considered other solution providers such as Alloy and Persona. We liked Effectiv because of their superior technology. The modularity, the speed, and the accuracy were key factors for us in choosing Effectiv’s platform.”
Lack of Real-time Payments Monitoring
When Pomelo launched its payments solution, they were unable to prevent fraudulent transactions in real-time. The existing alert system proved rudimentary and inadequate for handling sophisticated fraud attempts. Pomelo faced attacks and lacked protection against synthetic or first-party fraud, leading to a realization that a more advanced solution was needed. As Gene Shaffer, Chief Compliance Officer, explains “After asking all our fintech buddies for references, we heard from them that Effectiv was on top, which gave us confidence in ultimately going with them. It lets us know what’s Best in Class regarding a real-time fraud detection and prevention solution.”
Anti-Money Laundering (AML) Threats
While Pomelo’s initial risk profile was minimal due to its focus on secured and unsecured cards, AML measures were thin and needed to be reinforced for future growth. The email-based AML measures through Veriff, while compliant, needed improvement to meet the growing demands of Pomelo’s expanding user base. With the potential risks associated with sending money internationally, Pomelo sought a comprehensive solution to strengthen its AML practices.
“We considered other solution providers such as Alloy and Persona. We liked Effectiv because of their superior technology. The modularity, the speed, and the accuracy were key factors for us in choosing Effectiv’s platform.”
- Alora Calcagno, VP of Operations
Solution
Pomelo found its solution in Effectiv, a platform offering a no-code solution for onboarding, real-time transaction monitoring, and AML compliance.
Onboarding Simplified
Implementing Effectiv’s no-code, customizable solution significantly improved Pomelo’s onboarding process. The platform’s flexibility allowed Pomelo to rapidly iterate, providing a change log for every modification. The visual representation of workflows impressed their partner bank, accelerating approval turnaround times and demonstrating a commitment to compliance. Moreover, Lee commented that “Effectiv allows growth, engineering, and fraud teams to quickly iterate with activation, receiving the approval from the bank as quickly as possible.”
Real-time Fraud Prevention – Solved
Effectiv’s real-time transaction monitoring seamlessly integrated into Pomelo’s solution suite. The ease of integration and the absence of the need for additional vendors contributed to a faster time-to-market. The platform’s preventive measures and flags for fraud detection were well-mapped, providing clarity on transaction approvals and rejections.
Strengthened AML Measures
Effectiv addressed Pomelo’s AML concerns by offering a comprehensive solution. The platform’s no-code approach allowed engineers to customize the solution to Pomelo’s specific needs for fraud, compliance, and customer support. The flags for OFAC checks and other AML measures were aligned with Pomelo’s transaction queues, ensuring consistency and ease of tracking.
Result
Enhanced Efficiency & Customer Satisfaction
The adoption of Effectiv resulted in a remarkable improvement in efficiency for Pomelo. The platform’s no-code solution allowed the fintech company to quickly adapt to changing needs, resulting in a tenfold increase in response times for customers and ticket resolution. Pomelo’s customer support team, ranging from experienced professionals to new hires, found Effectiv’s standardized interface easy to use.
After implementing Effectiv’s onboarding solution, their first quarter results showed an approval rate of 65% with 85% of those being automated. In addition, 94% of their declines were automated.
Faster Approvals & Compliance
Pomelo’s internal processes were not only streamlined, but they also impressed their partner bank with its transparency and audit capabilities. The platform’s visual representation of workflows facilitated communication with the bank, leading to faster approval times. As Louise Muli, Fraud Analyst, states “The Effectiv solution allows for customization and lets us make it what we need the solution to be. So, if we need to hit new flags specific to our needs, it’s easy for engineers to implement that change in no time.” Pomelo achieved a balance between speed of activation and compliance approval, crucial for a fintech company aiming for rapid growth.
Comprehensive AML Measures
The platform’s flexibility allowed Pomelo to adapt AML measures according to its risk profile, focusing on key components such as CIP, address verification, date of birth, social security number, and name. The platform’s effectiveness in tracking transactions and checking against OFAC sanctions list contributed to Pomelo’s confidence in its AML practices.
“The Effectiv solution allows for customization and lets us make it what we need the solution to be. So, if we need to hit new flags specific to our needs, it’s easy for engineers to implement that change in no time.”
- Louise Muli, Fraud Analyst
Pomelo’s journey showcases the transformative power of adopting a comprehensive real-time risk management platform. By addressing the challenges in onboarding, real-time transaction monitoring, and AML compliance, Effectiv enabled Pomelo to not only enhance efficiency and customer satisfaction but also to position itself as a leader in the rapidly evolving fintech landscape.
In summary, Lee had this to say, “Effectiv has taken great care of us and treated us as if we are part of their internal team. The Founders have known this space for a long time. They really care about the customer, so I highly recommend Effectiv.” As Pomelo grows, it does so with the confidence that Effectiv will continue to support its evolving needs in the innovative and dynamic world of instant payment transactions.
