Wallet limit breaches and data duplications are crucial problems for prepaid card issuers. They hold the risk of consumers overriding the loading and spending limit.
That’s why RBI mandated that all prepaid programs deploy a centralized System of Records (SOR) in October’17. All prepaid program partners must mandatorily connect to the issuer’s SOR system.
What is a System of Record?
A System Of Record (SOR) or Source System of Record (SSoR) is a single source of truth or data source that stores important information about a system or process within the organization. It serves as a shared reference point that protects prepaid card issuers against data repetitions that arise when individual data is created, handled, and processed by multiple individuals or business units. As a result, SOR provides a single source of truth for operations.
The System of Records monitors the consolidated prepaid balance of all wallets issued to the end customer by the same issuer, independent of the prepaid program partner. It is a central ledger that tracks every registered customer’s overall balance in real-time based on their KYC status. In addition to holding centralized data on the consolidated balance of a customer’s prepaid wallet, it also carries issuer-specific information. This is in cases where the balance of multiple partner wallets is integrated under a single PPI issuer.
How SOR works for prepaid cards?
Say an individual holds two prepaid wallets with the same issuer. His personal information is captured in the issuer database for profile creation and KYC verification. Issuers who partner with Token Service Providers for SOR will have all data automatically transferred to a centralized database. Then KYC-based wallet limit, dedupe check, and customer profile creation will need to be managed.
Why SOR is critical?
SOR is critical for prepaid issuers who deal with huge volumes of data from multiple source systems. This system of truth helps secure the integrity and validity of any data set as it remains the only source of truth. If there is any other agreed system of record, the data element must be either linked to or extracted from it. In other situations, the provenance and estimated data quality should be documented. Here are some key benefits SOR offers to users.
- Provides the most complete, accurate, and timely data
- Best structural conformance to the data model
- Nearest to the point of operational entry
- Can be used to feed other systems
How can M2P facilitate SOR implementation?
We help banks and prepaid card issuers build a SOR, which will serve as a final source of truth for all customer data. Our robust API-led infrastructure offers a centralized database to track and monitor the data in real-time. The built-in checks and balances comprise AML, negative listing, and real-time watch listing capabilities to ensure compliance and zero limit breaches across programs.
Looking to implement SOR for prepaid cards?
We would like to help. Write to us at [email protected].
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Why System Of Records (SOR) is critical for Prepaid Card Issuers? was originally published in M2P Fintech on Medium, where people are continuing the conversation by highlighting and responding to this story.