Analytics Tools Flag Suspicious Changes in Customer Onboarding Process
In today’s fast-paced financial services industry, customer onboarding is a critical step that sets the tone for all future interactions with the end-to-end Know Your Customer (KYC) process. However, managing this complex process can be challenging due to fragmented systems and manual processes bridging the gaps.
The Importance of Advanced Analytics
To stay ahead of the curve, leading banking and financial services organizations rely on advanced analytics tools to flag suspicious changes in the customer onboarding process. These tools automatically detect unusual patterns and anomalies, bringing them to the attention of analysts, risk managers, and senior managers for review.
Three Keys to Success
Successful KYC processes share three key characteristics:
- Fast Access to Data: A data fabric approach provides a virtualized data layer that sits on top of all systems, enabling employees to access any data source in real-time. This enables banks to solve the data silos problem without replacing legacy systems.
- Reliance on Automation: Intelligent automation technologies such as intelligent document processing and machine learning can help analyze AML alerts faster than compliance teams alone can. Automation also improves visibility into decision-making processes, helping organizations reach informed decisions faster.
- Flexible, Reusable Workflows: Banks that prioritize reusable workflows can speed up the KYC process by reusing vetted, proven components at every stage of the workflow. This creates a large speed advantage and improves quality.
KYC and AML/BSA: Key Facts
The Bank Secrecy Act (BSA) - also known as the anti-money laundering law - requires banks to help detect and prevent money laundering and terrorism financing. BSA/AML incorporates provisions of the 2001 USA Patriot Act, which requires every bank to adopt a customer identification program.
What’s Next in KYC?
The KYC environment is constantly evolving due to criminal methods, regulations, technologies, and internal reorganizations. To stay ahead, banks and financial institutions will need to adjust KYC processes to keep up with these factors and fast-moving technology trends.
In 2023 and beyond, look for:
- Added regulations
- Wider ESG reporting demands
- Increased use of machine learning and AI
- KYC as a competitive advantage
Leading banks will strive to differentiate themselves through intelligent automation, improving the customer experience and turning the KYC process into a profit center.
By leveraging advanced analytics tools that automatically flag suspicious changes in the customer onboarding process, organizations can stay ahead of the curve and ensure compliance with ever-changing regulations while providing a seamless customer experience.