Today, there are many competing pressures on banks and financial services firms, including pressure from customers, and aligning potential customers with business strategy.
Enhanced offerings for banks and financial services firms, often through technology provided by FinTech or RegTech providers, has led to an associated rise in expectation levels from customers.
When procuring products or services from a bank, customers now expect a swift response and transparency in all aspects of the relationship.
As a result, banks need to review the sophistication and agility of their onboarding services to meet increased customer demand. At the same time however, there is a recognition that it has become more burdensome to onboard new customers. The rise in customer expectation has risen in tandem with the complexity of compliance regulations, which has added to the pressures falling onto banks.
Banks and financial services companies therefore need to integrate customer onboarding into their operations to make the process as smooth as possible.
One method that has been met with success by banks is having the ability to meet the needs of customers and regulatory requirements by automating workflows and managing data throughout the entire customer lifecycle. Automating workflows allows banks and financial services companies to not only increase satisfaction levels of customers, but also to mitigate costs.
There are myriad benefits to utilising a streamlined approach.
First and foremost, it allows banks to reduce the time spent on the onboarding process, and thus the time taken before they can start billing new customers. As we’ve written about elsewhere, manually onboarding a customer can be labour intensive, takes too much time, and can be subject to human error. Automating workflows removes these barriers completely.
What we are now seeing is that it is also critical for banks and financial services firms be able to illustrate an audit trail for each customer, should it be requested by a regulator. While this is extremely time consuming, and in most cases impossible to illustrate if done manually, by automating the process, is done automatically.
Cutting down on the number of interactions where a bank requests information from a potential customer is also good customer service, and will enhance reputation. Keeping a customer waiting before they can purchase products or services, is not only expensive for the bank, but will also work to the detriment of their reputation.
The dual pressures of increased expectation from customers allied with more complex regulatory requirements has the result that for banks and financial services companies, it is critical that they make their onboarding processes as sleek and agile as possible. This means doing away with manual onboarding and automating process. The benefits of a visible audit trail, cost-effectiveness, removing human error from the equation, reducing onboarding time and improving reputation and customer success make it imperative that this becomes a key priority for banks in 2017.
Pressures on firms include:-
Client onboarding should be simple, refined and innovative. Not only how the KYC process is designed, but also, how is it updated to meet future demand? How do individuals interact with the process?
Businesses can only be well positioned to meet the needs of clients and regulatory requirements by automating workflows and managing data throughout the entire relationship lifecycle. Having an integrated approach will mitigate costs and increase client satisfaction.
What we’ve illustrated here is that there are a number of different pressures weighing on banks, from internal factors, to external pressures such as customer expectation. Automating workflow is a unique and simple method for resolving these pressures, while offering benefits such as enhanced reputation, increase in revenue, ensuring compliance and utilising less manual labour.