DG Financial Technology Strengthens Efforts to Prevent Financial Crime as a Payment Service Provider Supporting Social Infrastructure

Digital Garage, Inc.
DG Financial Technology Strengthens Efforts to Prevent Financial Crime as a Payment Service Provider Supporting Social Infrastructure ~Building a risk-based approach merchant screening system using RegTech~
DG Financial Technology Co., Ltd. (Headquarters: Tokyo), a subsidiary of Digital Garage, Inc. (TSE Prime: 4819, Headquarters: Shibuya-ku, Tokyo, Representative Director, President and Group CEO: Kaoru Hayashi, DG) Shibuya Ward, President and Co-COO: Hiroshi Shino, hereinafter referred to as DGFT), as a payment service provider (hereinafter referred to as PSP) that provides a payment system that is a social infrastructure, to strengthen efforts to prevent financial crime, Regtech * 1 We built a merchant screening system based on a risk-based approach*2 that utilizes solutions.
■ Background
Against the backdrop of the promotion of cashless payments by the public and private sectors, the number of cashless merchants is rapidly increasing along with the growth of the face-to-face payment market. On the other hand, due to the rapid progress in digitalization of society as a whole triggered by the corona crisis, the number of companies entering the online business has increased, and the amount of damage caused by unauthorized use of credit card information in non-face-to-face transactions is expected to reach a record high in 2021. reached 33 billion yen*3. In order to prevent the provision of funds to terrorists and criminal organizations in the international community, countries are working together to promote countermeasures against financial crimes. We are trying to
Continuous customer management that detects and eliminates malicious merchants is important as a countermeasure against financial crimes in the payment industry, such as PSPs and credit card companies. This is an area where business is the main focus and there is a lot of room for improvement in terms of speed, accuracy, and cost. With the rapid increase in the number of member stores, DGFT has been promoting early screening and DX in order to optimize management resources and realize an efficient and risk-minimizing member store screening and management system. This time, DGFT will provide various services based on the regtech solution “SimpleCheck” * 4, which has high accuracy and completeness of corporate data and automatically and instantly collects and evaluates risk information on dozens of items. By additionally implementing DGFT’s own screening guidelines, we have built a speedy and highly accurate merchant screening system based on a risk-based approach.
■ Future development
The government aims to raise the cashless payment ratio to 40% by 2025 and to 80%*5 in the future, and the market entry of various business operators will continue to expand regardless of whether it is face-to-face or non-face-to-face. then predicted. As a PSP that supports credit card transactions, which is an important
infrastructure, DGFT will continue to pursue the construction of a more sophisticated and functional member store management system. In addition, the DG Group is promoting the Fintech financial business, including B2B payment services, under the group strategy “DG Fintech Shift” that fuses payment and data. In addition to expanding these new businesses across the Group, we will work with DGFT to strengthen our efforts to prevent financial crimes and our management system. [About DG Financial Technology] https://www.dgft.jp/
A payment provider that provides comprehensive payment services to online businesses such as EC and face-to-face businesses such as stores. Payments can be made at 880,000 non-face-to-face and face-to-face locations, and the annual transaction volume exceeds 4.8 trillion yen (as of the end of September 2022). Changed company name from VeriTrans Inc. to DG Financial Technology Inc. (DGFT) in April 2021. As a core company of the DG Group’s group strategy “DG Fintech Shift,” which integrates payment and data, we support the cashless and DX promotion of businesses in the fields of payment and finance. We will provide highly convenient functions and services to our member stores and end-users, consumers, and contribute to the development of a sustainable society as a useful infrastructure business by providing a safe, secure, and comfortable payment experience. will continue to contribute to
*1 Regtech: A coined word combining “regulation” and “technology,” referring to solutions that utilize the latest IT technology to respond to increasingly complex and sophisticated financial
*2 Risk-based approach: Efforts to identify and evaluate risks, and take appropriate countermeasures to effectively minimize risks. *3 Source: Japan Consumer Credit Association “Japan Credit Statistics
2021 (https://www.j-credit.or.jp/information/statistics/download/statistics_domestic_2021.pdf)” (July 6, 2022)
*4 SimpleCheck: A corporate verification process automation solution for financial institutions and platformers provided by SimpleForm Co., Ltd.
*5 Source: Ministry of Economy, Trade and Industry “Calculation of cashless payment ratio in 2021
(https://www.meti.go.jp/press/2022/06/20220601002/20220601002.html)” (June 2022) 1 day)
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