Banking and Finance

Verifying customers is a necessary step that all businesses must take to protect themselves from fraud, reduce risk and abide by industry regulations.
With the right tools, this process can be streamlined efficiently which allows for quick and efficient customer verification. By utilising our extensive range of KYC solutions, you can elevate your due diligence practices, effectively protect your business from fraudulent activities, and establish a secure operational environment. Our software is specifically designed to cater to the distinct requirements of businesses, offering a comprehensive set of features and functionalities that enable you to streamline customer onboarding and seamlessly monitor ongoing activities.

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The Timing Of Customer Risk Rating Is Important

The finance sector encounters a greater frequency of fraudulent activities in comparison to other industries, witnessing a notable surge in data breaches and incidents of identity theft. In order to address these unlawful practices, banks ought to perform customer risk evaluations during the onboarding process by leveraging automated systems. This approach helps prevent biased assessments and generates ratings based on Know Your Customer (KYC) information. Automated systems provide dynamic ratings that can be consistently revised to accurately capture evolving circumstances. Moreover, these ratings can be seamlessly integrated into transaction monitoring systems to establish comprehensive risk management protocols encompassing various rules and scenarios. It is imperative for financial institutions to regularly monitor their customers throughout the entire duration of their association to ensure the safety of the financial ecosystem.

Customer Risk Rating

Financial Institutions Face A Growing Burden Of Compliance Cost

Although necessary, Know Your Customer (KYC) and Anti-Money Laundering (AML) procedures can be burdensome for financial institutions. Reports have emphasized the substantial expenses involved in maintaining compliance with these regulations. These costs encompass both direct and indirect expenses, posing concerns about the banks' ability to carry out their day-to-day operations. Nevertheless, integrating automated technologies can alleviate the existing burden on financial institutions and facilitate compliance with KYC and AML requirements.

  • The expenses related to compliance are consistently on the rise.
  • The expenses associated with complying with regulations are consistently increasing.
  • The costs of adhering to regulatory requirements are consistently escalating.
Financial Institutions

The global expenditure of financial institutions reached $500 million.

Financial institutions in the top 10% globally spent $100 million in total.

There was a 19% rise in the cost of customer onboarding.

Salespeople dedicate 1 ½ days each week to onboarding new clients.

Financial Institutions Use Three Methods To Screen Customers

Onboarding: During the onboarding process, financial institutions typically perform a risk assessment on new customers. This involves utilizing screening software that presents a series of questions to the customer. By analyzing the responses, the system determines whether the customer's account creation and transaction capabilities should be approved based on the outcome of the risk assessment.

Ongoing: When a customer makes changes to their account details or when updates are made to the watch list information, financial institutions adhere to regular and standardized screening procedures, referred to as systematic screening.

Real-Time: For specific types of transactions, such as wire transfers, financial institutions engage in transaction-based screening. Before exiting the internal system of the financial institution, wire transfers undergo screening against watch lists. Given the importance of wire transfers as a fundamental service offered by financial institutions and their potential occurrence at any time, this screening process is carried out on an as-needed basis with swift turnaround times.

The Financial Sector Relies On Partnerships With Fintech Companies

By leveraging digital identity verification solutions, it becomes possible to validate customer information by utilizing data from authorized sources such as credit bureaus and government databases. These systems effectively distinguish between customers with extensive credit histories and those with limited credit backgrounds.

The partnership between banks and Fintech providers presents a valuable opportunity to enhance infrastructure and elevate customer offerings. Drawing upon the expertise of Fintech companies, banks can collaboratively develop tools and services that empower them to deliver superior digital experiences to their customers. It is imperative for banks to promptly and efficiently implement these solutions in order to maintain competitiveness, combat financial fraud and identity theft, and alleviate the burden of adhering to outdated internal policies related to KYC and AML compliance.