> ## Documentation Index
> Fetch the complete documentation index at: https://sigma-docs.pastelhq.ai/llms.txt
> Use this file to discover all available pages before exploring further.

# Use Case

> Banking Customer Onboarding & Risk Management

### The Challenge

<div className="bg-white dark:bg-gray-800 p-6 rounded-lg shadow border-l-4 border-red-500 mb-8">
  <p className="text-gray-700 dark:text-gray-300">
    Financial institutions must onboard{" "}
    <span className="font-bold">thousands of customers monthly</span> while
    maintaining strict regulatory compliance and risk management standards. With
    increasing regulatory scrutiny from AML/CFT authorities, banks need a
    comprehensive solution to verify customer identity, assess risk levels, and
    screen for high-risk individuals such as PEPs and sanctioned persons.
  </p>

  <p className="text-gray-700 dark:text-gray-300 mt-2">
    Failure to implement effective Enhanced Due Diligence processes can result
    in substantial regulatory penalties, facilitating financial crime,
    reputational damage, and loss of correspondent banking relationships.
  </p>
</div>

### Our Solution

<div className="bg-blue-50 dark:bg-gray-900 p-6 rounded-lg shadow-md mb-8">
  <p className="dark:text-gray-200">
    Sigma Enhanced Due Diligence integrates seamlessly into the financial institution's onboarding and compliance framework, providing comprehensive risk assessment and verification capabilities such as:
  </p>

  {" "}

  <div className="mt-4 space-y-2">
    <li className="flex items-start">
      <span className="text-blue-600 mr-2">→</span>
      <span>Multi-document identity verification using government databases</span>
    </li>

    <li className="flex items-start">
      <span className="text-blue-600 mr-2">→</span>
      <span>Automated risk scoring based on multiple risk factors</span>
    </li>

    <li className="flex items-start">
      <span className="text-blue-600 mr-2">→</span>
      <span>PEP and sanctions screening against global databases</span>
    </li>

    <li className="flex items-start">
      <span className="text-blue-600 mr-2">→</span>
      <span>AI-powered document processing and fraud detection</span>
    </li>
  </div>

  <p className="mt-4">
    Sigma acts as a comprehensive compliance and risk management platform for financial institutions, ensuring that all customers are properly verified, risk-assessed, and monitored throughout their relationship lifecycle.
  </p>
</div>

### How It Works

<div className="relative bg-white dark:bg-gray-800 p-6 rounded-lg shadow-md mb-8">
  <div className="absolute top-0 right-0 w-24 h-24 bg-blue-100 rounded-bl-full -z-10" />

  <div className="flex flex-col space-y-6">
    <div className="flex items-center">
      <div className="bg-blue-600 text-white rounded-full w-8 h-8 flex items-center justify-center font-bold mr-4">
        1
      </div>

      <p>Institution submits customer information and documents via API</p>
    </div>

    <div className="flex items-center">
      <div className="bg-blue-600 text-white rounded-full w-8 h-8 flex items-center justify-center font-bold mr-4">
        2
      </div>

      <p>Sigma verifies identity using government databases and processes documents with OCR</p>
    </div>

    <div className="flex items-center">
      <div className="bg-blue-600 text-white rounded-full w-8 h-8 flex items-center justify-center font-bold mr-4">
        3
      </div>

      <p>System calculates risk score and screens against PEP and sanctions lists</p>
    </div>

    <div className="flex items-center">
      <div className="bg-blue-600 text-white rounded-full w-8 h-8 flex items-center justify-center font-bold mr-4">
        4
      </div>

      <p>Institution receives comprehensive risk assessment with recommendations</p>
    </div>
  </div>
</div>

### Risk Level Outcomes

<div className="grid grid-cols-1 md:grid-cols-2 lg:grid-cols-3 gap-6 mb-8">
  <div className="!bg-green-50 dark:!bg-green-800 p-6 rounded-lg border-t-4 border-green-500 shadow-md">
    <h3 className="text-green-700 dark:text-green-100 font-bold text-lg mb-2">
      Low Risk
    </h3>

    <p className="text-gray-700 dark:text-gray-200">
      Standard onboarding process with basic monitoring and annual reviews.
    </p>
  </div>

  <div className="!bg-yellow-50 dark:!bg-yellow-700 p-6 rounded-lg border-t-4 border-yellow-500 shadow-md">
    <h3 className="text-yellow-700 dark:text-yellow-100 font-bold text-lg mb-2">
      Medium Risk
    </h3>

    <p className="text-gray-700 dark:text-gray-100">
      Enhanced documentation required with quarterly reviews and additional
      verification.
    </p>
  </div>

  <div className="!bg-orange-50 dark:!bg-orange-800 p-6 rounded-lg border-t-4 border-orange-500 shadow-md">
    <h3 className="text-orange-700 dark:text-orange-100 font-bold text-lg mb-2">
      High Risk
    </h3>

    <p className="text-gray-700 dark:text-gray-200">
      Senior management approval required with monthly monitoring and enhanced
      due diligence.
    </p>
  </div>
</div>

<div className="bg-white p-6 rounded-lg shadow-sm">
  <div className="grid grid-cols-1 md:grid-cols-2 gap-5">
    {[
            {
              title: "Multi-Document Identity Verification",
              description:
                "Verifies customer identity using BVN, NIN, passport, and other government-issued documents.",
              icon: (
                <path
                  fillRule="evenodd"
                  d="M10 18a8 8 0 100-16 8 8 0 000 16zm3.707-9.293a1 1 0 00-1.414-1.414L9 10.586 7.707 9.293a1 1 0 00-1.414 1.414l2 2a1 1 0 001.414 0l4-4z"
                  clipRule="evenodd"
                />
              ),
            },
            {
              title: "AI-Powered Risk Assessment",
              description:
                "Uses machine learning to calculate risk scores based on multiple factors and customer profiles.",
              icon: (
                <path
                  fillRule="evenodd"
                  d="M11.3 1.046A1 1 0 0112 2v5h4a1 1 0 01.82 1.573l-7 10A1 1 0 018 18v-5H4a1 1 0 01-.82-1.573l7-10a1 1 0 011.12-.38z"
                  clipRule="evenodd"
                />
              ),
            },
            {
              title: "PEP & Sanctions Screening",
              description:
                "Screens against global PEP and sanctions databases with fuzzy matching for name variations.",
              icon: (
                <path d="M9 6a3 3 0 11-6 0 3 3 0 016 0zM17 6a3 3 0 11-6 0 3 3 0 016 0zM12.93 17c.046-.327.07-.66.07-1a6.97 6.97 0 00-1.5-4.33A5 5 0 0119 16v1h-6.07zM6 11a5 5 0 015 5v1H1v-1a5 5 0 015-5z"></path>
              ),
            },
            {
              title: "Compliance Reporting & Analytics",
              description:
                "Generates comprehensive compliance reports and analytics for regulatory requirements and audit purposes.",
              icon: (
                <path
                  fillRule="evenodd"
                  d="M2.166 4.999A11.954 11.954 0 0010 1.944 11.954 11.954 0 0017.834 5c.11.65.166 1.32.166 2.001 0 5.225-3.34 9.67-8 11.317C5.34 16.67 2 12.225 2 7c0-.682.057-1.35.166-2.001zm11.541 3.708a1 1 0 00-1.414-1.414L9 10.586 7.707 9.293a1 1 0 00-1.414 1.414l2 2a1 1 0 001.414 0l4-4z"
                  clipRule="evenodd"
                />
              ),
            },
          ].map((item, idx) => (
            <div key={idx} className="flex items-start space-x-3">
              <div className="bg-blue-100 p-2 rounded-full">
                <svg
                  className="w-5 h-5 text-blue-600"
                  fill="currentColor"
                  viewBox="0 0 20 20"
                >
                  {item.icon}
                </svg>
              </div>
              <div>
                <h4 className="text-sm font-semibold">{item.title}</h4>
                <p className="text-xs text-gray-600">{item.description}</p>
              </div>
            </div>
          ))}
  </div>
</div>