corporate digital identity (CDI)

Know Your Customer (KYC) procedures stand as a cornerstone for establishing trust and compliance within the banking sector. Yet, traditional KYC processes pose significant challenges, from manual data collection to prolonged onboarding times. Enter corporate digital identity (CDI) – a game-changer in KYC onboarding.

By standardizing identity verification of their corporate clients, corporate, investment and commercial banks can streamline processes. In addition, they can also deliver superior customer experience and business growth opportunities. Our blog highlights six benefits of the transformative power of corporate digital identity:

1. Elevated customer experience with accelerated onboarding

CDI enhances the customer experience by simplifying and expediting the KYC process for corporate clients. Streamlined verification procedures and real-time data extraction and consolidation reduces the need for physical document submission. In turn, reducing client outreach, lengthy onboarding times and internal friction between teams.

This convenience contributes to a smoother, more user-friendly experience. Additionally, CDI enables personalized interactions and tailored services. Empowering banks to meet the unique needs of their corporate clients while fostering trust and loyalty in the relationship.

2. Greater efficiency from corporate digital identity

CDI delivers enhanced efficiency primarily by streamlining the KYC process for corporate clients by building a real-time golden source view of the customer. Therefore, significantly reducing the manual effort and paperwork associated with traditional manual onboarding procedures. Furthermore, reducing the reliance on increasing headcount to manage backlogs and solve the KYC burden.

Additionally, CDI minimizes the risk of human errors. Ensuring accuracy and consistency with automated data searching and the matching and merging of information collated, which further contributes to efficiency gains.

Overall, CDI optimizes operational workflows, reduces processing times, and increases Straight Through Processing (STP). Resulting in a more efficient onboarding experience for both corporate clients and banks alike.

3. Data as a valuable bank asset

The potential for data value transformation is immense with CDI, as it combines real-time data and documents from authoritative sources alongside customer-provided private information. This capability brings a new era in the KYC landscape, addressing longstanding challenges faced by banks in unprecedented ways.

Issues such as managing conflicting data are resolved by CDI, with normalization, primacy rules and entity resolution. Through this integrated approach, a singular, unified, and dependable source of truth emerges. Turning the resultant data into a valuable business asset that can be leveraged across teams within the bank in line with data security and privacy restrictions. This rich dataset enables better decision-making, personalized services, and targeted risk management strategies.

4. Consistency of corporate digital identity standard

Establishing consistent standards for corporate identity is a complex endeavor. Without standardized global guidelines, banks are compelled to construct their own understanding of an entity from client-submitted information and public data.

Leveraging authoritative data sources and private customer information, CDI ensures the creation of consistent and precise customer profiles, complete with corporate structure, audit trail, full data lineage and source documents. These profiles are meticulously tailored to meet specific regulatory requirements and risk appetites, thus enhancing the efficiency and accuracy of KYC procedures.

5. Compatibility with existing technology

A further benefit of a CDI platform is its compatibility with existing technology infrastructure. Whether it’s integrating with CLM or CRM systems, these identities can seamlessly weave into the fabric of a bank’s tech stack. This integration not only enhances operational efficiency but also lays the groundwork for future innovations in KYC processes such as perpetual KYC (pKYC).

6. Strengthened risk management

Navigating complex corporate structures across multiple jurisdictions can be daunting. CDI simplifies this process by providing a holistic view of corporate entities. With CDI, banks can unravel intricate structures and identify ultimate beneficial owners (UBOs) efficiently while demonstrating compliance and boosting risk mitigation.

CDI platforms are customizable to different jurisdictions, regulatory requirements, risk appetites and business strategies.

Corporate digital identity as a catalyst for transformation

Corporate digital identity (CDI) enables banks to amalgamate real-time public and private data, crafting comprehensive customer profiles that are seamlessly integrated into internal systems. This transformation yields manifold benefits for both banks and clients, including expedited onboarding, enhanced customer satisfaction, mitigated risks, and fortified regulatory compliance.

Corporate digital identity is not just a solution; it’s a catalyst for transformation. By embracing this innovative approach to KYC onboarding, banks can unlock growth opportunities and unprecedented levels of efficiency and compliance. The future of finance is digital, and corporate digital identity is leading the way forward.

Learn more about how Encompass delivers CDI.