Achieving Compliance and Efficiency: A Case Study in Customer Due Diligence and Lifecycle Management
Enhancing Efficiency, Compliance, and Integration in a Multi-Brand Banking Environment
Reduced onboarding time by
80%
New customers onboarded in March 2023
6,319
Single account opening NPS
89%
The Background
Our client, a leading provider of financial services across the Netherlands, are a multi-brand bank serving 3.3 million corporate and retail customers globally. To satisfy client needs in an increasingly disruptive and competitive market, we recognised the importance of simplifying access to the bank while remaining compliant.
The Challenge
The bank recognised that it needed to unify the onboarding process across its brands to simplify its technological architecture. CLM processes typically involved numerous manual tasks performed in swivel chair scenarios, leading to inefficiencies and a lack of standardisation. This resulted was a suboptimal customer experience and increased operational complexities.
CDD & KYC
Implementing Customer Due Diligence (CDD) procedures across various business sectors, such as corporate, retail, and investment banking, posed a considerable challenge. Previously, the Know Your Customer (KYC) prerequisites were documented using an Excel questionnaire that was not seamlessly integrated into the onboarding process. This lack of integration resulted in inconsistencies and exposed the bank to compliance risks, impeding its capacity to fulfill regulatory obligations efficiently.
Data Lifecycle Management
Customer data was not efficiently reused throughout its lifecycle, resulting in repeated requests for information. This not only added to the workload of both customers and employees but also led to delays in decision-making processes and hindered the ability to provide personalised services.
Legacy CLM System
A legacy CLM system caused difficulties in implementing new business functionality and lacked the ability to integrate with other systems. Without a more up to date system there was a lack of agility and the ability to evolve to market demands.
Disparate Onboarding Processes
Each brand within had its own unique onboarding process, resulting in a lack of standardisation and consistency. These processes were predominantly manual, heavily reliant on advisors, and primarily communicated through telephone channels. To meet the minimum expectations of customers and establish a consistent experience across all brands, an update to the onboarding process was necessary.
Our solution
We built one process for onboarding and CLM allowing changes to be made unilaterally and easily applied to all.
Initially, the minimum viable product (MVP) aimed at providing customers with the ability to open a single bank account through the retail website. Recognizing the demand for expanded functionality, we later extended the solution to accommodate joint accounts, non-compliant customers, savings, and investment banking options. Once the core features were developed, our focus shifted towards ensuring the availability of the solution across multiple channels. This involved enabling access through in-branch advisors, internet banking platforms, and the dedicated banking app.
To enhance the onboarding process and meet regulatory requirements, we undertook further enhancements and integrated the Customer Due Diligence (CDD) process. By incorporating CDD into the Know Your Customer (KYC) requirements, we created a unified onboarding process that streamlined compliance procedures. This integration facilitated a comprehensive understanding of customer backgrounds, risk profiles, and regulatory compliance, allowing us to efficiently onboard customers across various account types and banking segments.
Through iterative, agile development and integration efforts, we successfully transformed the initial MVP into a comprehensive and flexible onboarding solution that caters to diverse customer needs.
Accelerated onboarding time
By reducing onboarding time by up to 80% - the time to revenue is drastically increased. Onboarding a new customer via the retail website or banking app removes human intervention and reduces the risks of input errors. Which not only accelerates onboarding time but also reduces the need for as many advisers.
Gain customer loyalty and reduced abandonment
Enhanced customer experience by providing real-time application status updates and seamless channel transitions, eliminating the need for service calls and reducing the likelihood of application abandonment.
Rapidly adapt to market changes and regulatory measures
By unifying the processes, geographical changes to due diligence and regulatory measures can be made centrally. This reduces the number of manual processes across each brand and guarantees that each brand is up to date with any changes, staying in line with customer due diligence. It also massively reduces the risk of data siloing and fractured data.
Ensure reuse and KYC streamlined
Our solution guarantees the re=use of customer data, to avoid fragmented data or siloing. Using a whats required, when required' approach guarantees the streamlining of KYC and keeping up with due diligence requirements.