In today’s economic climate, it is imperative that banks and credit unions not only know their customers but also their vendors and prospects. A business’ financial health can change overnight, and the sooner you know about a change in an organization’s circumstances, the better off you’ll be.
Argos Risk Surveillance collects business information from a variety of sources. We take this information, analyze it, and display it in an easy-to-read dashboard, providing you with business insight that allows you to make faster, better decisions.
Customers and Prospects
Most financial institutions reevaluate their customers annually, but with the uncertainty of today’s economy, a once-a-year check-up just isn’t good enough. With Argos Risk Surveillance , financial institutions are able to quickly identify the credit and financial health of a prospective customer. If you decide to extend credit to that applicant, just upload their business information to your Argos Risk Surveillance Watch List, and you’ll be able to continually monitor their credit and financial health.
Financial institutions are required to actively monitor the health of their critical vendors. With Argos Risk Surveillance , banks and credit unions can simply upload their vendors’ contact information to their Watch List and continually monitor their health. If something changes, the financial institution will receive an email alert notifying them of the change in that vendor’s status.
If you are an Originating Depository Financial Institutions (ODFI), you understand that there is risk involved when initiating transactions for your ACH customers. For each ACH customer, Argos Risk Surveillance assigns an ACH Index Score. This score is calculated using ten industry-specific credit risk data elements and numerous ACH specific risk factors such as transaction type and frequency in order to provide a continuously updated metric indicating the risk associated with an ACH customer. Whether these customers are Originators, Third-Party Senders, or Third-Party Service Providers, Argos Risk Surveillance helps you get a handle on the risk involved with these different types of relationships.
Third-Party Sender and Third-Party Sender Originators
ODFIs that initiate ACH transactions on behalf of Third-Party Senders are taking on an additional level of risk due to the challenge of gaining access to the Third-Party Senders’ originating customers. An ODFI has an agreement with Third-Party Senders, but not with the customers of the Third-Party Sender. In cases where each of those Third-Party Senders could be originating transactions for hundreds of customers the FI has taken on substantial risk without appropriate awareness or underwriting. Because ODFIs are ultimately responsible for any transaction they process, it is imperative that they verify the business health and status all Third-Party Senders and their originating customers.
Argos Risk Surveillance enables ODFIs to easily determine the financial health of Third-Party Senders and their originating customers. Simply by adding a business to its Argos Risk Surveillance Watch List, an ODFI can quickly analyze the creditworthiness of all of its customers and get daily updates if any business information changes.
In addition, ODFIs can create Third-Party Sender portfolio groups that allow you to see the aggregate risk that a single Third-Party Sender brings to your organization. By viewing Argos Risk Surveillance 's Third-Party Sender Portfolio Report, financial institutions can quickly see the number of originators for any given Third-Party Sender along with their average Standard ACH Index Score, aggregate volume, aggregate ACH limit, and aggregate ACH Peak Exposure.
Money Service Businesses
Money Service Businesses come in the most unlikely of packages. From the neighborhood grocery store to the jeweler down the street, it is difficult to tell at first glance whether or not a business is registered with the Financial Crimes Enforcement Network (FinCEN).
As such, Argos Risk Surveillance alerts subscribers to a company’s Money Service Business status when it is added to their Watch List. In addition, if a company that is currently being monitored registers with FinCEN, the subscriber will receive an alert notifying them of this change in status.
The OFAC Courtesy Check is a courtesy service that alerts users that an input name possibly matches a name on the list of individuals and entities that are prohibited by the U.S. Treasury from doing business in or with the United States. The companies entered will be screened against the OFAC list and Specially Designated Nationals (SDN) list. If there are possible matches we will generate a list with information on those possible matches and what criteria they matched on either name or address. This is a courtesy check and should not replace any current OFAC screenings in place and the subscriber is advised to perform due diligence and verify whether the consumer is the individual on the U.S. Treasury's list. When you initially load a company into Argos Risk we will check the OFAC and SDN list and if one of your loaded companies gets added to the OFAC or SDN list we will alert you that this change has occurred. With this feature Argos Risk provides you with one more way to monitor the risk of your vendors, customers, competitors and partners.
Argos Risk Surveillance provides ODFIs with the ability to customize the origination activities for each of their customers. ODFIs can easily forecast peak exposure risk, establish a calculated ACH limit, and monitor each originator’s ACH Index Score. Furthermore, when financial institutions upload historic transaction and return data, Argos Risk Surveillance calculates the corresponding actual peak exposure risk and return risk percentages, generating alerts notifying users of critical risk scores. By analyzing these critical risk metrics, ODFIs are better positioned to management and evaluate a customer’s ongoing business relationship.