How Technology Can Help Banks Remain Compliant and Meet Customer Expectations

Banks face the challenge of operating within a complex regulatory landscape while also meeting the increasingly digitalized needs of their customers. Fines and reputational damage are constant threats for banks found to be non-compliant. On the other hand, customers expect seamless digital experiences when interacting with their bank.

One major regulatory requirement that poses challenges for banks is performing Know Your Customer (KYC) checks, particularly for companies. Obtaining the necessary information to fulfill regulatory requirements can be a time-consuming process, with some businesses waiting up to 12 weeks.

Fortunately, technology offers a solution in the form of digital KYC profiles. These profiles are generated automatically from authoritative data sources and can be seamlessly integrated into banks’ internal systems. They provide a consistent view of each customer, improving operational efficiencies and enhancing the overall customer experience.

Moreover, technology-driven approaches ensure compliance generating real-time digital KYC profiles with source documents, data attribute lineage, and a comprehensive audit trail. This gives banks confidence that they are following policies accurately and can demonstrate compliance when necessary.

Leveraging Technology and KYC Profiles to Build Customer Trust and Improve Customer Experience

Banks have been hindered legacy technology and lack of interoperability between systems, leading to inefficiencies and increased risk in processes. This has a negative impact on both customers and banks.

However, digital KYC profiles can integrate with any existing technology, driving interoperability and eliminating manual processes. For example, outdated, manual KYC processes often result in extended onboarding times, which can create friction and decrease customer satisfaction. Digital KYC profiles generated on demand from multiple sources streamline the process, minimizing outreach for additional information and delivering a more efficient and seamless journey for every customer.

By prioritizing customer experience and building trust through efficient KYC processes, banks can save time and build long-lasting relationships with corporate customers.

Remaining Competitive Through Technology and Digital KYC Profiles

In today’s competitive market, banks risk losing customers if they cannot onboard them quickly enough. The speed and efficiency of the onboarding process can often determine a business’s choice of banking provider.

To remain competitive, banks must reassess their systems and implement technology-powered processes that deliver fast, seamless, and positive customer experiences while driving operational gains for the bank. Digital KYC profiles enable swift and confident identity verification and validation for corporate customers, addressing a key pain point for banks.

Not only does this ensure regulatory compliance, but it also enhances customer trust and improves the bank’s reputation. Additionally, robust KYC processes and accurate data lead to operational efficiency gains and provide opportunities for identifying business growth.

Maximizing the Value of Data through Automation Technology

Performing KYC requires handling a large volume of data, which can be challenging to monitor and maintain. Fragmented data from various sources hinders the development of a single customer view.

Digital KYC profiles consolidate the data banks rely on, eliminating the need for multiple integrations and reducing the burden on internal IT teams. By standardizing the sourcing, retrieval, and collation of data, banks can develop and maintain a single view of each customer, facilitating a more effective KYC process.

Sources:
– Encompass CEO and Co-founder Wayne Johnson