Redeban Boosts its Leadership in Colombia with the Acquisition of SoyYo

In a strategic move aimed at strengthening its presence in the Colombian financial market, Redeban, recognized for its processing of monetary transactions, acquired the fintech company SoyYo.

Marking a significant milestone in the industry, as it expands Redeban’s digital authentication capabilities and reinforces its commitment to innovation and security in financial transactions.
What is Redeban’s vision with the acquisition of SoyYo?

Read more about the acquisition of the fintech company SoyYo by Redeban and find the most important financial news of the day with the Born2Invest mobile app.

Redeban processes more than 2 billion monetary transactions in a year

Thanks to this and SoyYo’s digital authentication capabilities, the company will enrich the transactions that Redeban processes, improving the user experience, eliminating existing frictions from obsolete processes and strengthening anti-fraud solutions. This acquisition is the result of the company’s commitment to innovating the nation-building payments industry.

Redeban will continue to strengthen its anti-fraud and authentication services for financial institutions. The goal is to establish a cost scheme that allows authentication to be carried out in the payment processes, enrollment processes and purchasing processes, to effectively mitigate the risks of fraud.

Additionally, the company want to turn authentication services for businesses and companies into a process as simple as subscribing to Netflix. Our goal is to offer simple, self-managed and automatic technological processes, but with all the technological and security robustness that Redeban provides. Thus, Redeban aspire to reach sectors such as retail, fintech companies, tourism, health, gaming and chance, telecommunications and education.

Why is the acquisition of SoyYo so important for Redeban?

This acquisition is a new complement that allows Redeban to reinforce its intention to consolidate ourselves as the technological arm for financial and non-financial entities. It will allow teh company to provide increasingly unified and cost-efficient services, democratizing digital authentication and, above all, strengthening our portfolio of anti-fraud solutions. Redeban will see significant improvements in card purchases and more secure transfers, as well as the development of digital banking correspondent and open data.

How does SoyYo today generate value for companies in their authentication and fraud mitigation processes?

SoyYo is a solution that seeks to enable companies to access technologies most advanced in the industry, achieving efficient identity validation mechanisms, lower acquisition costs and fraud mitigation. Many companies in the financial sector require identity validation mechanisms when providing their products or services. Traditional mechanisms vary from requesting a physical ID, sending keys, fingerprint scanning, sending tokens to emails or challenge questions, generating discomfort for users seeking to carry out their operation.

Soy-Yo’s value proposition uses several layers of security, including facial biometrics. The user completes the registration process only once and from there they will be able to access products and services from different entities in a simple and, above all, secure way with just a selfie.

Will new solutions come to the market with this acquisition?

Indeed, with this acquisition Redeban will complement the current offer, including new solutions. Some of those that will soon be on the market are:

• Authentication services that complement financial transactions, for example unlocking accounts and/or cards, as well as risk authentication in immediate account-to-account payments (Inter-Account).
• Validation of risk transactions in electronic commerce.
• Authentication of transactions that banks already have today such as 3DS in electronic commerce, eliminating challenge questions, calls and SMS.
• Authentication tools to be an enabler of open data as a second authentication factor.
• Complement to our digital banking correspondent offer.

With these new SoyYo tools, businesses, financial institutions and users themselves will be able to avoid the rejection of transactions when they are legitimate. Not only will we mitigate fraud, but entities will be able to reduce unjustified rejections, making a more efficient and reliable market for all actors in the ecosystem.

How is the functionality of SoyYo reflected in the daily life of a Colombian? What benefits does this purchase bring to Colombians?

Colombians will be able to access products and services without so many steps or clicks in identity validation. A selfie will be enough. Colombian and foreign users will be able to take advantage of the solutions offered by Open Finance to grant their consent more securely and obtain financial products such as microcredits through fintechs. These processes will become increasingly self-managed and immediate, reducing the risks of identity theft.

Although many registration processes are currently done thanks to a machine or even artificial intelligence, they usually end in SMS validations or challenge questions. The objective is that with the company’s solutions this process is 100% automated, with an agile, simple and reliable experience. Another benefit will be having a second authentication factor in ATMs to avoid theft and be able to make safer and faster withdrawals, eliminating the famous “card changes” that are very common to carry out fraud.

On the other hand, any company and from any economic sector will be able to connect the secure authentication service for remote access and automate their know-your-customer (KYC) processes. In the end the company wins, the user wins and the country wins. Redeban strengthens itself as an enabler of digital transactions and financial inclusion.

How with this acquisition does Redeban contribute to the efforts that entities are making to mitigate fraud?

Redeban is a strategic ally for financial entities, retailers and businesses. With SoyYo, Redeban aims to create a large anti-fraud consortium where, in a collaborative scheme, entities will be able to benefit from the alerts generated in transactions. Depending on the risk appetite of the entities, they may decide to generate a new challenge or reject the transaction.

In addition to alerts, SoyYo provides other reliability attributes through email, line and mobile device, and user session permanence. With these attributes and trust parameters, the entity can make decisions associated with the risk resulting from the interaction with citizens. Redeban’s purpose is to unite different industries, with different customer niches in a single ecosystem where fraud mitigation and user-centric experience are the main milestones.

Will SoyYo continue to operate as a separate brand or will it be integrated as a new Redeban product/service?

The SoyYo brand will be maintained and enters Redeban’s portfolio as one of its strategic units. SoyYo is, and will continue to be, a recognized brand in the market and its value proposition will be present in banks, pension and severance funds, fintech companies and other sectors.

Redeban aims to preserve the spirit of SoyYo as a fintech company, enhancing its attributes of agility, innovation and its technological development capabilities for the user.

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(Featured image by Ri_Ya via Pixabay)

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First published in W Radio. A third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

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