by steve haddawayChief Revenue Officer, Encompass Corporation
WAs the financial landscape rapidly evolves, banks must balance meeting stringent regulatory compliance demands with ensuring operational efficiency in order to achieve long-term success.
The global issue of financial crime and combating it continues to receive attention, with the UK Government introducing Economic Crime Plan 2 and other regulatory measures to bring about change. Therefore, while the threat of financial crime remains, it is imperative that financial institutions remain vigilant and proactively respond to changing regulatory frameworks, while prioritizing driving efficiencies that contribute to their growth trajectory. There is.
In financial services, there is continued focus on the benefits of digital transformation as banks seek to implement the best that technology has to offer to enhance processes and meet rising customer expectations.
For know-your-customer (KYC) processes, financial institutions have traditionally relied on manual approaches. While these may have been sufficient in the past, the case for technological solutions such as dynamic he KYC process automation has never been clearer.
To meet customer and regulatory expectations and remain competitive in an increasingly crowded market, financial institutions must trust the technology available to them. Doing so will not only significantly improve outcomes now, but will also deliver future benefits as your business's KYC operations are set up to foster and respond to continued acceleration and growth. To do.
Stay compliant with changing regulatory frameworks
For educational institutions to achieve this meaningful growth, it is important to stay ahead of the curve when it comes to compliance. Complying with regulatory obligations, particularly around anti-money laundering (AML), requires money, time and resources that cannot be underestimated.
While non-compliance can undoubtedly be costly, both in terms of fines and associated reputational damage, financial institutions also have an obligation to protect their customers and their data. This highlights the need to invest in technology that can provide peace of mind that compliance is assured, enhance your entire operation, and pave the way for success now and in the future.
Essentially, KYC is a critical process that allows institutions to verify the identity of their customers and flag potential risks. Although their relevance has increased in recent years, as mentioned earlier, the traditional manual processes are time-consuming and labor-intensive, with analysts spending more time searching for and analyzing relevant data.
These steps require analyzing documents and cross-referencing data with various databases and watchlists. This process is manual, prone to human error, and can take days or even weeks to complete.
This is just one point that highlights the fact that the benefits of moving to automation are huge, especially when it comes to time savings. Automation allows you to build a digital KYC profile in minutes. This eliminates the KYC bottleneck and relieves a huge burden on the analyst at the center of the activity, reducing his trading time by more than 40%. This results in a more rounded and smoother service, which increases staff morale, provides a sense of external satisfaction, and increases loyalty.
Additionally, as regulations change, compliance teams need to stay up to date with these changes, which can be a challenge when working with a manual approach. Automating KYC enables a consistent and streamlined process while freeing analysts to focus on the cases where their expertise and intervention is truly needed.
Importantly, automation provides access to critical data needed for investigations, while also assisting in monitoring regulatory changes and updating customer profiles in real time. This provides a rigorous and effective approach that fully automates her KYC searches in just 8 minutes.
Cost of inefficient KYC
Ensuring an effective KYC system in place has never been more important. Looking at the global impact, the total cost of financial crime compliance across financial institutions is projected to be $274.1 billion. Especially in Europe, banks had to contend with operating costs of 12 billion euros per year related to his KYC processes.
Recognizing what is required to meet compliance obligations for companies and companies with complex ownership structures further increases costs in both money and time, with banks spending up to 47 hours performing the required tasks. It will be. For each multinational or foreign company customer.
Drive long-term growth
For banks and financial institutions that have begun to transform their KYC processes, the costs of inefficiency are clear, making it important to spend on technology that can have an immediate and measurable impact.
Within today's banks, Chief Operating Officers (COOs) in particular have much to consider and significant responsibilities in this regard. Ultimately, you decide how to allocate your budget and invest in new technology. This means these personnel focus on balancing high operating costs with the ability to quickly onboard and monitor clients. And while the UK's economic outlook is certainly brighter than it was at the end of last year, agencies still need to be careful when allocating their budgets. As spending comes under increasing scrutiny, institutions need to focus on investments that will demonstrate positive change across the business both immediately and long into the future. Automation allows you to do just that.
One way to maximize success and growth is to focus on improving customer experience and long-term satisfaction.
Manual KYC approaches require extensive documentation and verification during onboarding and regular updates, often leading to long and tedious processes that can lead to customer dissatisfaction. Additionally, staff members involved in these processes are often overwhelmed by the amount of checks and work required, which can lead to decreased productivity and overall engagement.
In contrast, automating the manual due diligence process performed by KYC analysts reduces onboarding times from 12 days to just 2 days, providing customers with a faster, easier, and more satisfying experience, and increasing This will have a direct impact on your bottom line.
Meanwhile, real-time access to the data needed for investigations also reduces the need for customer interaction, which simplifies onboarding and increases customer engagement and retention.
In what is undoubtedly a highly competitive sector, accelerating the digital transformation of processes such as KYC and the innovative solutions available are central to helping banks achieve their goals and achieve long-term, sustainable growth. .
Forward-thinking educational institutions can leverage automation to stay ahead of the competition, leveraging technology to provide the most valuable tools for any business. It is up to organizations to unlock this potential in all business areas to reap the benefits.
Ultimately, trusting these solutions means that, amidst all the changes around you, you'll be able to maintain compliance while delivering customer-satisfying service and improving operational efficiency in ways that drive long-term acceleration and growth. It means that institutions can move forward with confidence that they can maintain their