Enhanced Digital Identity Needed to Secure Business Growth

Q: What was the main need that motivated you to found Zenpli? 
A: The motivation to start Zenpli came from my experiences as a consumer trying to open a financial product. Despite technological advances, a photo of a physical document was still required to validate a person's identity, which did not align with the expectations of the digital world. We felt that a digital environment focused on proper data management should enable a higher level of trust, which led us to redefine digital identity and propose an approach based on three types of credentials: static data, such as name and date of birth, physical documents that change over time, and digital footprints that reflect interaction users have while transacting online. 

Zenpli merges these three attributes to increase trust in digital identity. This approach goes beyond simply matching a document to a photo; we offer a more robust solution against malicious actors who exploit weaknesses in traditional methods.

Q: What is Zenpli's unique approach to address identity risk in Mexico and how does it differ from solutions offered by other vendors?
A: Zenpli develops technological tools and integrates intelligence to analyze malicious actors' tactics. We have conducted experiments using accessible tools, many of them free, to create synthetic identities at scale. This has allowed us to identify weaknesses in existing verification processes and anticipate attack methods that our customers might face.

This approach allows us to create solutions that are more robust and adapted to the realities of today's digital environment. We discovered how fake identities are sold on social networks and forums, and we understand the rules that criminals use to avoid detection. By articulating our three credentials of digital identity, we offer a comprehensive and coordinated solution that outperforms those that focus on a single aspect of identity, allowing us to provide greater security compared to other solutions on the market.

Q: What is Zenpli's strategic approach to penetrate the Latin American and Mexican markets?
A: Latin America, especially Mexico, is our main focus. Compared to other more developed regions, these markets are still at a midway point in implementing and digitizing financial services. Historically, understanding digital identity was limited to basic aspects such as physical document verification. Over time, there has been a greater willingness to share data and a deeper understanding of the complexity of cyber fraud. This shift has increased  demand for more comprehensive solutions. Zenpli sees an opportunity to offer innovative digital identity  solutions, taking a broad, horizontal view of the fraud problem in these emerging markets.

Q: How has Zenpli simplified the complexity of the identity risk landscape for its customers while ensuring seamless regulatory compliance?
A: We have addressed this complexity by deeply understanding the three main teams within our customer base: growth/product, engineering, and risk/compliance. At Zenpli, we work with each team to ensure that their needs are covered, yet maximize the business goals of the organization. For example, while the compliance department seeks to raise barriers to minimize risk, the growth/product team seeks to lower barriers to foster growth. We transform these conversations into identity solutions, facilitating the successful execution of a KYC/KYB and fraud prevention program without hassle by linking all the required identity domains and applying business rules.  

By turning these needs into inputs for our platform, which integrates verified and analyzed data sources, we significantly simplify company processes. This can eliminate up to 90% of the effort required by the companies, enabling faster product launches, more scalable operations, and more cost-efficiency. 

Q: How have Zenpli's solutions helped protect financial institutions and their customers against identity theft and other cybercrimes?
A: Zenpli’s solutions have enabled financial institutions to implement identity verification programs quickly, securely, and in compliance with regulations, while using fewer resources. We have worked with institutions that, through a single interconnection or API, were able to verify both individuals and corporations, a process that otherwise would have taken up to six months. This resulted in significant cost savings for these companies. In addition, we offer our solutions as a SaaS, so companies can access this innovation rather than having to build in-house which would require 10x the effort. 

We have been able to dramatically reduce fraud rates among credit card issuers, which have seen an 80%-85% decrease in the incidence of fraud. This translates into greater protection for customers and improved security for financial transactions. These results not only directly benefit financial institutions by protecting their reputation and customer confidence, but also have a positive economic impact by reducing losses associated with fraud and other cybercrime.

Q: What is the main incentive for financial firms, both regulated and non-regulated, to invest in risk management and compliance solutions?
A: The financial sector invests in compliance programs because of increasing supervision, arising from regulators such as Mexico’s National Banking and Securities Commission. Those in the non-regulated sector invest in compliance and risk management as part of best business practices. However, we have seen that both regulated and non-regulated sectors are starting to see the benefit of having higher trust in their digital customers as it provides a higher security and long-term sustainability for their businesses. 

Q: How will AI and machine learning transform anti-fraud strategies?
A: We see a future where AI will revolutionize anti-fraud strategies by enabling the application of smarter rule-setting. For example, optimizing fraud prevention processes could reduce the noise generated by redundant rules by up to 80%. However, this transformation also carries risks, as the industry is experiencing an alarming increase in synthetic identities that are causing annual losses of up to US$50 billion in the financial sector globally. This underscores the urgency of adapting to the sophistication of fraudsters, who are leveraging AI to increase their creativity in cyberattacks.

Q: What technologies is Zenpli implementing to protect financial institutions and their customers against social engineering attacks and the use of malware?
A: There is no silver bullet and getting digital identity right requires multiple layers that combine cutting edge machine learning, proprietary data, AI, and real-time intelligence on emerging fraud tactics. This allows us to strengthen trust in digital identity, reducing financial institutions' exposure to identity risks. We win by nurturing our tools with intelligence acquired from the market to constantly adapt to new threats, protecting both institutions and their customers against evolving fraud.

Q: How is Zenpli integrating non-technological elements into its solutions to provide more complete and effective protection against identity fraud?
A: Fraud prevention is a cat-and-mouse game and we take a proactive approach in which evolution and adaptation are key. This involves not only implementing technological tools, but also fostering a mindset of intelligence through constant learning and improvement within companies. For example, on a quarterly basis, we conduct an exercise in which we simulate the creation of synthetic or false digital identities at scale using various open sources and social engineering techniques. We actively share these findings with our clients to provide them with a deeper understanding of potential vulnerabilities related to identity risk and promote greater diligence in their security practices. This combination of technology, processes, and organizational culture allows us to offer more comprehensive and effective protection against identity fraud.

Q: What are Zenpli's specific expansion plans in Mexico and Latin America by 2025? 
A: We are focusing on consolidating our presence in Mexico, a market with enormous potential. We are also contemplating an expansion into Central America and Colombia before the end of 2024. These regions represent opportunities due to their potential for growth and the demand for identity solutions in the financial and business sector. By 2025, Zenpli aims to establish a solid presence in these markets, leveraging its differentiation in the use of AI for identity verification of both individuals and corporations. 

We also see a need for more business inclusion, where SMBs can access products and services faster. Today most businesses that cater to small and medium sized companies in the region onboard customers running manual verifications of corporate documents that can take days if not weeks, slowing the pace of commerce and offering a less than desirable customer experience.  Mexico alone has over 4.9 million SMBs and we’re excited about automating KYB onboarding with AI. This opportunity carries enormous potential to offer solutions that accelerate user activation processes and reduce associated costs.

Q: What new sectors or industries does Zenpli plan to enter in the short term?
A: We are focusing on mass commerce, retail, and logistics, which are increasingly adopting digitization processes and opening online accounts. Although not as regulated as the financial sector, these sectors face specific digital identity challenges due to the increase in online transactions and the need to protect sensitive customer data. Zenpli's strategy is to apply the learnings and security standards developed in the financial sector to these new industries, adapting its solutions to address the particular needs of each sector and ensure the protection of customer information and digital identity.