M-KOPA SA Customer Verification Training

Customer Verification Training Overview

• The training focuses on ensuring accuracy and compliance in customer verification
• The training took place in March 2025 in M-KOPA South Africa

Manual Verification

• Manual verification involves reviewing customer documents and financial records for compliance and accuracy without automation
• Key aspects include document review, identity confirmation(comparing Selfies and ID photos), financial screening using XDS reports for affordability and fraud risks assessment and decision making in application approval or decline
• Manual verification ensures compliance, prevents fraud, and protects customers by verifying financial stability
• It helps in accurate decision-making, which reduces risks for both the business and the customer

Manual Verification in South Africa

• It is required due to NCR (National Credit Regulator) compliance
• Unlike other markets relying on automation, South Africa requires human oversight to ensure compliance with local credit laws and responsible lending
• Agents also conduct thorough fraud detection and manual identity verification, especially for customers lacking digital verification records
• Accuracy, compliance, and customer protection in onboarding are ensured through this approach

Manual Verification Process

• Designed to ensure all customer details are checked before approval, involving the following key steps
• Customers submit documents, including IDs and Passports
• Agents compare IDs with selfies to check for inconsistencies
• XDS financial checks are retrieved to confirm debt review, fraud status and affordability
• Based on document validity and financial results, verification is either approved or rejected
• The final outcome is documented via Freshdesk ticketing, informing sales teams about the status.
• Focuses on regulatory compliance, fraud prevention, and accurate onboarding

NCR Regulations and Compliance

• The National Credit Regulator (NCR) oversees responsible lending practices in South Africa
• Companies must follow NCR guidelines to ensure fair and transparent credit processes
• Key aspects are affordability assessment, debt review protection, identity verification and consumer rights protection through clear loan terms and disclosures
• Compliance matters for businesses to avoid legal risks, ensure ethical lending, and protect against fraud
• Also, it protects customers from over-indebtedness, ensuring transparency and financial well-being
• Following NCR guidelines promotes responsible lending and builds trust with customers

Key Verification Points

• Verification ensures only eligible customers proceed
• Compliance with KYC and anti-fraud policies is essential
• Maintaining a clear audit trail is also critical for accountability
• Agents have a vital role in verifying customer details and preventing errors

Training Objectives

• At the end of this training, agents are able to understand the importance of customer verification and compliance
• Agents can accurately verify customer documents using the Manual Verification Portal (MVP), Freshdesk, and XDS
• They can identify and document verification failures with clear reasons
• Agents can properly disposition and close verification tickets
• They follow best practices to ensure accuracy, compliance, and data security

Successful Verification Flow

• Structured steps for customer verification
• Acknowledge Ticket (Freshdesk) --> Validate Documents (Manual Verification Portal) --> Retrieve Reports (XDS - Microloan Snapshot & Faceview Plus) --> Upload Documents (Freshdesk) --> Add Ticket Notes (Successfully Verified with Affordability Snapshot) --> Disposition Ticket and Update Ticket Status (Freshdesk)

Unsuccessful Verification Flow

• Structured steps for customer verification
• Acknowledge Ticket (Freshdesk) --> Check for existing customer accounts using ID number (Freshdesk) --> Validate Documents (Manual Verification Portal) --> Retrieve & Upload Reports (XDS - Microloan Snapshot & Faceview Plus) --> Document Failure Reasons (including specific rejection categories: Identity Document Issues, Photo Verification Issues, Customer Eligibility Issues) --> Add Ticket Notes (Manual Verification Unsuccessfuly on Freshdesk ) --> Disposition Ticket and Update Ticket Status (Freshdesk)

Accepted Documents

• Smart Card ID
• ID Book
• Temporary ID (Valid and not expired)
• Driver's License
• South African Passport
• Foreign Passports

Documents Not Accepted

• Expired Documents
• Foreign ID Books
• Temporary Driver's License
• Visa or Asylum Documents (for foreign applicants)

Validating Customer Documents

• Customer documents are valid and meet all required standards
• Key actions involve verifying ID authenticity, comparing the ID photo with the submitted selfie, and checking for missing, unreadable, or fraudulent documents
• South African customers applying with a passport must still provide their South African ID Number on the application.
• Validate Home Affairs stamp and MRZ (Machine Readable Zone)
• Ensure validity, checking for entry visas or residency permits
• Verify official government stamps and security features
• Ensure all pages are clear and readable.

Driver's License Validation

• Agents should ensure the license is valid and not expired
• Check for hologram/security features
• Verify the license number, comparing the photo with the submitted selfie
• Printed details of the document must be clear and untampered

Temporary ID Validation

• Ensure it is issued by Home Affairs and not handwritten
• Check that the expiry date is valid at the time of submission
• The document should be stamped and signed by the issuing authority
• Confirms that customer details match the application

Manual Verification Portal (MVP)

• MVP (Manual Identity Verification Portal) is the primary system used for customer verification, it ensures South African NCR compliance
• It provides a secure and auditable process for manual customer identity verification, allowing efficient approval or rejection based on submitted documents

Why MVP Is Essential

• Manual verification is required for all registrations in South Africa
• Ensures regulatory compliance with NCR guidelines
• Ensures accuracy of identity verification, reducing fraud risks
• It is a centralized and auditable approval process linked to Freshdesk
• Maintains verification efficiency and ensures compliance with verification standards for all customer registrations

Process - Freshdesk

• A Freshdesk ticket is raised for every verification request needing manual review
• CC agent clicks "See details on verification portal" within Freshdesk ticket
• The FreshDesk ticket is named Activation – Customer Verification
• Agents acknowledge the ticket by adding a note
• Accounts are searched by entering the customer's ID in Freshdesk
• The agent is redirected to the Identity Verification Portal to review the verification request

Process – Identity Review Page

• Agents are redirected to the identity review page for review
• The status of the ticket should be "New"
• The page details the customer and their document submission
• The aim is to assist and guide the CC agent in what to look out for in approving or rejecting submissions

Actions on Identity Review Page

• CC agents must select a reason for rejection if documents are insufficient, e.g Image is not clear, selfie not matching details etc
• The agent selects a rejection reason and clicks "save button"

Confirmation Screen

• A confirmation box appears to confirm either approve, or reject
• "Yes" is selected if correct and you are sure of your choice, No if you are not

Actions After Confirmation

• The CC agent selects "save"
• A notification confirms that the review has been saved
• A CC agent can not go back and make changes after the current selection is saved
• The Sales App is updated with the agents selection
• If rejected, an SMS is sent from Freshdesk with the rejection reason

Selection Status

• The selection status changes from "New" to either "Approved", or "Rejected"
• If rejected, a drop down indicates the reason why
• Once again, a CC agent will not be able to go back, and change a selection once a decision as been made

XDS (Xpert Decision Systems)

• A tool in manual verification, offers financial and identity insights for informed decisions
• As a credit bureau and analytics platform, verifies customer details and ensures regulatory compliance.

Why Use XDS?

• It allows Agents to access reports, confirming a customer's financial standing and identity
• Reports include;Debt review status, fraud alerts, and affordability indicators
• This ensures only eligible customers go through the verification process

XDS Reports

• Microloans Snapshot: Provides an overview of existing credit obligations
• Cross-checks ID details against the Home Affairs database

Agent Use of XDS

• Agents log into the XDS portal and access reports
• Cross-reference data with submitted documents
• Upload reports to Freshdesk for record-keeping

Microloans Snapshot

• Provides an overview of existing credit obligations

FaceView Plus

• Is a tool to view and check customer details

Freshdesk Ticket Process

• Agents navigate back to the customers ticket and select "Add Note"
• The "attach" button is clicked in order to upload XDS documentation
• Agents must re-name customer documents

Note Template to Provide Verification

1. Agents should use standard templates, here are examples
2. Fraud Status(Yes/No)
3. Debt Review Status(Yes/No)
4. Customer Income(ex.. R2000)
5. Loan Obligations(ex...R2000 too)

Ticket Outcomes in Freshdesk

• Agents should update the ticket based on the verification outcome
• A message stating "Verification successful" should be add if the customer checks out.
• Inversely, provide a reason for declining in the notes

Post-action Steps

• All documentation must be attached as reference
• Send an SMS to the DSR(Direct Sales Representative) of why the application was declined
• Categorize the ticket correctly to the Freshdesk Dispositions
• A CC agent may need to resubmit an registration

List of Canned Responses

1. Indecent photo
2. Underage
3. ID is an unofficial document
4. ID is obscured by glare
5. Customer photo obscured by glare
6. Mismatch between ID photo
7. Photo of a photo 8 Tapmered/Forged document
8. Customer photo not within the frame
9. Customer flagged for Fraud
10. Customer is under debt review

Learning Outcomes

• This course will ensure workers are able to understand to importance of customers
• Accurately identify customer documents using MVP, Freshdesk and XDS
• The team will also identify and document failures clearly
• You will be able to properly disposition and close verification tickets effectively
• Use best measures to keep processes secured
• All the aim of maintaing a secured, efficient and compliant verification in the long run