Note from the CEO: Ah yes, the old “Know Your Customer” (KYC) rule has been drilled into every financial professionals head for…….well, forever. If you haven’t heard, in today’s digital remote world actually meeting (and speaking) to another person is rare. Very rare, even in a Starbucks line. So, how financial institutions KYC (here I thought that was Kentucky chicken) with their onboarding process?
New rules, changing regulations and mounds of paper make onboarding new customers a headache for banks and a very slow process as well. Replacing existing ways of opening new accounts with new digital technology can speed up the whole process and make the customer’s onboarding experience a whole lot better. With the new technology even the compliance department can get a much better. “Know Your Customer” comfort factor. Very good insight.
"Constant changing legislation is an every day challenge for financial institutions. Nowadays, banks have to implement stringent and robust Know Your Customer (KYC) programs to prevent fraud, identity theft, money laundering, and financing of illegal activities if they want to comply with government regulations and reduce their risk. The only difference between the financial institutions who can adapt fast and the ones who can’t is their customer onboarding process. Many BPM leaders in banks still relie on paper forms and manual compliance checks and I hope this article will give you the opportunity to understand why leading banks are now switching to rapid customer onboarding to enhance compliance (and why you should do so also).
At each new regulation introduced when an old one is replaced, financial institutions scramble to meet the new compliance standard. New forms are issued, and previous ones recalled. Application forms have to be kept up-to-date. Sales agents have to relearn which fields are mandatory for clients to fill in. It can require many months to roll out a new compliance program. For a global financial institution, these changes are complicated because different regions have different compliance rules. Even after implementation, compliance can be a source of frustration. Many applications are not accepted and need to be resubmitted due to missing mandatory fields. Sales experience delay in closing; salespeople are embarrassed; but most importantly, clients are frustrated. Obviously, this is not the idealistic situation, but this is the daily lifetpalyed out every day with a paper and manual-based onboarding process...."
Source: Linkedin Pulse