When thinking about onboarding a user, it’s important to understand the entire user experience. The process described below focuses on the recommended User Experience including KYC, node creation, and any necessary subnets.
Add Additional Documents to Verify the User if required
Notes:
Nodes and subnets can be created while the user is still "Unverified"
Users must be verified to open a LOAN-US node
User onboarding is the culmination of your marketing campaign and the beginning of your relationship with the user. It's important to provide a smooth onboarding experience in order to maximize your conversion rate.
Long onboarding times drastically increase abandonment
Users are more likely to provide additional KYC information in order to activate their account rather than create their account
Consumers are very sensitive to KYC friction
Business users are familiar and tolerant of KYB friction
Display the TOS and Privacy Agreements
Required Language: "Synapse is our backend software provider, and partners with financial institutions to provide FDIC insurance. Synapse’s API, and their relationship with financial institutions, enables us to offer banking services and products. By agreeing to <insert platform name>’s TOS and Privacy Policy, you also agree to Synapse’s terms and policies below: Links"
Collect basic user information
Phone
Address
Name
Collect the minimum documentation required from users. This is described in your Spec Sheet
US Residents: SSN
International Users: Physical Documents
Display a W-9 Certification (required for consumer programs for US residents)
Display the TOS and Privacy Agreements
Required Language: "Synapse is our backend software provider, and partners with financial institutions to provide FDIC insurance. Synapse’s API, and their relationship with financial institutions, enables us to offer banking services and products. By agreeing to <insert platform name>’s TOS and Privacy Policy, you also agree to Synapse’s terms and policies below: Links"
Collect Login and Base Business Details
Name
Phone
Incorporation Date
Address
Collect Business Documents
Incorporation Documents
Relevant Licenses
Owners/UBOs/Executives (Same as Consumer Documents)
Collect Executives & UBO Information
Default:
Phone
Role
Ownership Percentage
Address
Name
US Users:
SSN
International Users:
Physical Documents
Video Authorization
Notes:
Onboarding as a business user is a time commitment. In order to minimize dropoff during the onboarding process, we recommend giving users access to the application before they have finished supplying all of the required KYC & KYB.
Users must be aware that their account is not active and that they must be verified before they can start transacting.
Business Onboarding can take time in order to verify all of the required information
Notes:
After User creation, all API calls will require an oauth token
Protecting fingerprints, or marking them as “protected”, not only prevents their eventual expiration, it also ensures the fingerprint is not popped off the list in the event that the user has exceeded the overall limit.
If protecting an existing fingerprint, ensure that is inactive (is_active=false)
If the fingerprint is active, deactivate it by performing the OAuth call with is_active=false in the payload
POST /v3.1/oauth/{{user_id}}
POST /v3.1/oauth/{{user_id}} with the following payload parameters
is_active = true
is_protected = true
refresh_token
scope
preview_only=true
Display Account Disclosure
Display the Agreement PDF to User
Collect Affirmative Consent from the user
Display Node Details
Wait for the user to be approved SEND-AND-RECEIVE
preview_only=true
Display Account Disclosure
Display the Agreement PDF to User
Collect Affirmative Consent from the user
Run Credit Decisioning
Create the Node with Credit Decision (required for Approved and Rejected Loans)
Display Node Details
Display Cash Advance terms
Create the Repayment Node
Create the Disbursement Node
Display the Promise to Repay Disclosure
Required Language: “The bank services are provided by Synapse's partner banks, Members FDIC. By accepting the terms of this account on <Insert Platform Name>, you agree to <Platform>'s Promise to Pay Agreement.”
Display the agreement PDF
Display the Cash Advance Details:
Amount
Repayment Account
Disbursement Account
Repayment Date
Collect Affirmative Consent from the user
Notes:
Platforms can charge a fee for cash advance
Platforms cannot charge APR for Cash Advance
Cash Advance products are heavily scrutinized by regulators
The following must be disclosed within TOS and on user's application screen:
"All loans are made by Synapse Credit LLC, NMLS 1971454, a licensed U.S. lender in designated States. Loans are [unsecured and/or secured], fully amortized personal loans. Eligibility for a loan is not guaranteed."
Display Loan Summary
Create a preview of the LOAN-RESERVE-US agreement
preview_only=true
Display the LOAN-RESERVE-US agreement to user
Display Disclosure to User:
Required Language: “The bank services are provided by Synapse's partner banks, Members FDIC. By accepting the terms of this loan on <Insert Platform Name>, you agree to Synapse’s Consumer Loan Agreement.”
Display loan Agreement
Collect Affirmative Consent from the User
Run Credit Decisioning
Create a ONE-TIME LOAN-US Node
Set disbursement node as the LOAN-RESERVE-US node
The following must be disclosed within TOS and on user's application screen:
"All loans are made by Synapse Credit LLC, NMLS 1971454, a licensed U.S. lender in designated States. Loans are [unsecured and/or secured], fully amortized personal loans. Eligibility for a loan is not guaranteed."
Create the Disbursement Node
Create the Repayment Node
Display Disclosure to User:
Required Language: “The bank services are provided by Synapse's partner banks, Members FDIC. By accepting the terms of this loan on <Insert Platform Name>, you agree to Synapse’s Consumer Loan Agreement.”
Display loan Agreement
Collect Affirmative Consent from the User
Run Credit Decisioning
Notes:
Do not set the reserve_node_id when creating the node
The following must be disclosed within TOS and on user's application screen:
"All loans are made by Synapse Credit LLC, NMLS 1971454, a licensed U.S. lender in designated States. Loans are [unsecured and/or secured], fully amortized personal loans. Eligibility for a loan is not guaranteed."
Display Loan Summary
Create a preview of the LOAN-RESERVE-US agreement
preview_only=true
Display the LOAN-RESERVE-US agreement to user
Display Disclosure to User:
Required Language: “The bank services are provided by Synapse's partner banks, Members FDIC. By accepting the terms of this loan on <Insert Platform Name>, you agree to Synapse’s Consumer Loan Agreement.”
Display loan Agreement
Collect Affirmative Consent from the User
Run Credit Decisioning
The following must be disclosed within TOS and on user's application screen:
"All loans are made by Synapse Credit LLC, NMLS 1971454, a licensed U.S. lender in designated States. Loans are [unsecured and/or secured], fully amortized personal loans. Eligibility for a loan is not guaranteed."
Display Loan Summary
Create a preview of the LOAN-RESERVE-US agreement
preview_only=true
Display the LOAN-RESERVE-US agreement to user
Wait for transaction to settle in the reserve node
Receive TRANS|PATCH Webhook with settled status
Display Disclosure to User:
Required Language: “The bank services are provided by Synapse's partner banks, Members FDIC. By accepting the terms of this loan on <Insert Platform Name>, you agree to Synapse’s Consumer Loan Agreement.”
Display loan Agreement
Collect Affirmative Consent from the User
Run Credit Decisioning
Display Loan Summary
Link Reserve Funding Node
Display the LOAN-RESERVE-US agreement to user
Display Disclosure to User:
Required Language: “The bank services are provided by Synapse's partner banks, Members FDIC. By accepting the terms of this loan on <Insert Platform Name>, you agree to Synapse’s Consumer Loan Agreement.”
Display loan Agreement
Collect Affirmative Consent from the User
Run Credit Decisioning
Wait for transaction to settle in the reserve node
Receive TRANS|PATCH Webhook with settled status
Wait for transaction to settle in the platform node
Receive TRANS|PATCH Webhook with settled status
Enable transactions out of the loan node
Notes:
The credit limit for a revolving loan is linked to the amount kept in the loan reserve.
In order to facilitate a fast onboarding experience, platforms can front the reserve amount in order to allow users to complete the onboarding process while waiting for the transaction to clear from the 3rd party account.
We recommend having enough funds to cover 3 days of user onboarding in your clearing account to cover loan reserves
The following must be disclosed within TOS and on user's application screen:
"All loans are made by Synapse Credit LLC, NMLS 1971454, a licensed U.S. lender in designated States. Loans are [unsecured and/or secured], fully amortized personal loans. Eligibility for a loan is not guaranteed."
Display Loan Summary
Create the Repayment Node
Display Disclosure to User:
Required Language: “The bank services are provided by Synapse's partner banks, Members FDIC. By accepting the terms of this loan on <Insert Platform Name>, you agree to Synapse’s Consumer Loan Agreement.”
Display loan Agreement
Collect Affirmative Consent from the User
Run Credit Decisioning
Notes:
Do not set the reserve_node_id when creating and previewing the node
Display the Account and Routing number
preview_only: True
Display Card Disclosure
Required Language: “The bank services are provided by Synapse Financial Technologies, Inc.’s program bank partners, a list of which can be found at www.synapsefi.com/legal, Members FDIC. By opening a debit card on <Insert Platform Name>, you agree to Synapse's Consumer Cardholder Agreement.” “Consumer Cardholder Agreement" shall be a hyperlink to the Platform’s custom agreement, provided by Synapse.
Display the Agreement PDF to User
Collect Affirmative Consent from the user
Collect card nickname
Display Subnet Details
Collect Account and Routing Number
Wait for the user to be approved SEND-AND-RECEIVE
Notify the User of Incoming Micro Deposits
Collect Micro Deposit Numbers
Notes:
Linking accounts via micro deposits is subject to fees in order to support the cost of sending the transactions
Fraud rings have started farming micro deposits using automation which can lead to huge losses if not managed properly.
Display account aggregator window
Collect username/password via aggregator
Collect Account details from aggregator
Notes:
Prerequisite: Integrate with an account aggregator like Plaid or MX
Include account details and 3 months of account history when creating the node
Collect Card details from User
Card Number
Expiration
CVV
Payment Address
Encrypt Card on the user’s device details with Synapse public key
Notes:
Platforms will be required to maintain PCI Compliance and pay for regular audits if unencrypted card details hit their servers at any time
Invalid Card Details will result in a 400 response code
In order to reduce fraud, platforms can elect to enforce restrictive AVS requirements when creating the node
Receive USER|PATCH webhook
Identify unverified base documents
Notify User of Need for additional documents
Get required KYC details for CIP tag and trust level
GET /v3.1/client/controls
Display required KYC options to user
Collect additional KYC from user