Ecuador’s Supplementary Severance Fund Goes Digital: CacaoTech and Regula Revolutionize Document Signing

CacaoTech is a technology consulting company in Ecuador. It helps businesses adopt strategies and services that improve their profitability, optimize processes, and accelerate digital transformation. Its mission is to turn technology into a key driver of business growth and success, providing support in key areas such as the adoption of new technologies, infrastructure improvement, and technological project management.

Challenge

CacaoTech was approached by a private severance fund—Fondo de Cesantía de la CTE—that was determined to fully switch to digital documentation and customer interaction.

As it is responsible for severance funds and loans, Fondo de Cesantía de la CTE must verify the identity of every customer. To streamline the process and make it more convenient for individuals, the fund provided a special mobile application, Fondo Fácil, via which users could upload all the necessary documents. However, it was impossible to sign papers remotely. Therefore, applicants had to visit Fondo de Cesantía de la CTE offices in person to sign documents physically.

The fund recognized the need to modernize its processes to provide a more efficient, secure, user-friendly, and fully digital experience. Key objectives included mitigating the risk of identity theft or fraud, ensuring non-repudiation, and enhancing overall efficiency and compliance through digital solutions.

Solution

CacaoTech recognized remote identity document verification and facial recognition as critical steps that could significantly improve the insurance fund's processes. With this foundation, CacaoTech developed a BioTech Validator solution, which was integrated into the Fondo Fácil app.

As a core technology for its solution, CacaoTech chose a complete identity verification (IDV) solution from Regula: Regula Document Reader SDK and Regula Face SDK. This allowed them to cover both document and biometric (facial) verification, making the process entirely digital, remote, and secure.

Now, when applying for Fondo de Cesantía de la CTE services, a person undergoes a quick and intuitively clear procedure.

First, they scan or capture an image of their Ecuadorian national identity card. Regula Document Reader SDK instantly recognizes it and identifies the zones that contain personal information. Then, the solution reads and validates the data, including the data encoded in the barcode. Via extensive data cross-comparison and authenticity checks, Regula’s solution verifies that the document is genuine and hasn’t been illegally altered (otherwise, it flags possible document fraud).

After that, the user is biometrically verified. Regula Face SDK compares the official document portraits with selfies provided by the person during onboarding. This check proves that the company is dealing with the rightful ID holder.

Ensuring non-repudiation and securing digital transaction signatures, the BioTech Validator solution is used in various operations, including:

• participant adhesion contracts;
• loan applications;
• electronic promissory note signatures;
• electronic signatures of loan guarantors;
• requests for additional contributions.

Result

The new solution was implemented within 8 weeks, thanks to the responsive and professional support from the Regula team. As a result, the severance fund immediately noted significant improvements across several key areas:

• Enhanced usability. The digital processes enabled quick and efficient validation of documents and identities, providing a seamless experience for both users and administrators.
• Increased security. By automating identity verification and document signing, the solution reduced the risk of identity theft and ensured the authenticity of transactions.
• Higher efficiency. The new system reduced the time required for participants to complete their procedures, allowing for faster processing of loans and other services.
• Time and cost savings. The organization reported a 43% reduction in time and operational costs, freeing up resources for higher-value tasks such as strategic analysis and new customer acquisition.

We are pleased to receive positive feedback from our participants who now use our Fondo Fácil application and attest to the improvement of our services and 100% digitalization from anywhere in Ecuador. We will continue working to implement cutting-edge technology.

—Emilio Legarda, Chief Executive Officer at Fondo de Cesantía de la CTE

We are extremely satisfied with the success of the BioTech Validator implementation. The project met all objectives and timeframes, significantly improving the fund’s operational efficiency and reducing errors through automation. Regula's solutions played a critical role in this achievement, providing robust document and biometric verification that enhanced the participant experience and ensured greater security.

—Douglas Quintero, Chief Executive Officer at CacaoTech