Four in 10 UK businesses abandon banking services applications due to ‘slow due diligence processes’
The research asked businesses about the challenges they face in getting access to financial support, as well as attitudes towards cybersecurity and regulation.
In addition, the polling found that businesses plan to prioritise spending on cybersecurity over anti-financial crime compliance in 2020, with 44% putting plans in place. However, a large 81% of organisations agree that they are confident in their understanding of exposure to financial crime and that they already have the processes in place to address it.
According to the polling results, 44% of companies said they did not regularly put customers and suppliers through formal KYC processes. Additionally, 60% admitted that there has been no training for staff about how to be compliant with the Fifth Money Laundering Directive (5MLD).
Meanwhile, nearly one third of businesses (29%) said they now trust challenger brands and fintech providers more than traditional banks. Wayne Johnson, CEO and co-founder, Encompass comments:
It is disappointing that complex, expensive and overly-long due diligence processes are preventing British businesses from getting access to the finance and banking services they urgently need.
Everyone recognises that it’s vital to ensure correct background checks on new customers to prevent money laundering and criminal activity, but these checks should not act as a hindrance to legitimate companies gaining access to the credit and services they require.
It’s also worrying that so many companies admit to minimal KYC onboarding processes, as well as offering zero training on important directives such as 5MLD.
It’s time that banks and financial services organisations harnessed the power of analytics and automated solutions to swiftly and securely adhere to these important compliance processes. Doing so will unblock the logjam and get companies the access to necessary financial support during this challenging time, and without delay.
on demand webinar
Practical implications and anticipating future regulatory changes
Encompass' intelligent process automation platform for KYC dramatically improves the client experience, significantly speeding up KYC processes. Encompass automates gathering, processing and collation of primary and premium information and news discovery for KYC purposes - be that for new customer onboarding, event-driven refresh, or remediation.
Using their customers’ existing internal KYC policies and processes, Encompass constructs corporate ownership structures, discovers beneficial owners, and comprehensively screens entities and persons for risk - be that across structured watchlist data sets or unstructured adverse media sources.
Advanced intelligent process automation builds a comprehensive KYC profile from multiple sources, facilitating fast, confident decisions.