Know Your Customer (KYC) and customer due diligence continues to be a challenge for most financial service organisations. These challenges are fuelled by the ongoing changes in the regulatory landscape, which are subject to laws such as FATCA and FICA, as well as changes like income, address and identity in the customer profile. The Vantage Solution is a workflow-based solution designed to accelerate KYC assessment and automate remediation efforts in a standardised auditable process. This solution is aimed at the African market where in-country regulatory requirements and statutory documents differ, in certain cases they even expire. With the inclusion of a multi-language feature, the Vantage Solution also helps to make information and checklists clear for both the organisation and their customers.
The Challenges Of KYC Responsibility
Clients who have a KYC responsibility typically face a number of challenges:
- KYC is applied on a client rather than on product level; which requires an ongoing single customer view.
- At the core of the KYC problem are the data and supporting documents; which banks are required to maintain. These documents are often kept in physical files across different locations or at a product rather than a customer level.
- The KYC check is applied during the on-boarding or cross-sell process. This check often works against the customer experience objectives as they require additional effort, which results in delayed turn-around times.
- Remediation could require a significant investment, simply because contacting the client through face-to-face channels is expensive and time consuming.
The Digiata Vantage Solution is an integrated offering. It combines several of our existing solutions including an on-boarding eco-system; a digital repository, electronic forms and workflow as well as auto alerts and notifications.
THE ORIGIN OF THE VANTAGE SOLUTION
The Vantage Solution originates and builds upon the concept of a vantage to create a place where one can ‘see anything from anywhere’. This solution is applied in two different aspects of the KYC remediation challenge:
Fix the backlog – cleaning up the history or backlog, which typically requires significant manual effort to review the physical documentation and logging a customer’s KYC status.
Stop the bleed – whilst the history is being addressed, a customer’s information changes daily due to new on-boarding or cross-sell interactions.
THE VANTAGE PACKAGE
The Vantage Solution is designed to accelerate the manual effort and automate these processes on an entity-type single customer perspective. The specific components leveraged to leapfrog a client’s position are Auto Back Scan, KYC assessment, remediation automation and real-time reporting.
Auto Back Scan is a solution in which Vantage applies OCR technology in order to digitally recognise and index manual paper or electronic images. Documents are then stored in a digital library for KYC assessment. Besides auto-classification, the OCR capabilities also read and enrich personal data, such as ID numbers, ID expiry data and addresses from specific statutory documents required for assessment. These digital images are then either migrated to the client’s specific content management tool or maintained within the Vantage library on an ongoing basis.
KYC assessment and checklists are parameterised through the user friendly administration screens. These checklists are applied to the back-scanning effort, and ongoing in the-business-as-usual on-boarding and cross-sell effort processes. They are based on decision trees and setup within the following features:
- Entity type checklists
- Document types for each requirement including proof of income, proof of identity and proof of address.
- Information checklists such as ID expiry dates and next of kin.
- Watchlist checks like PEP screening, global watchlists and regulatory watchlists.
Remediation automation (automatically contacting the customer) is one of the most costly exercises in the KYC programme is. Based on the checklists above, Vantage will workflow the outstanding information through the most cost effective/automated channels possible:
- Text/SMS reminder and notification
- E-mail with customised letters and notifications
- Outbound call centres and queues based on business priority
- Branch and reception screens
Real-time reporting is essential when various reports are required to monitor the KYC progress and assess the daily state of compliance across the organisation. Every activity and user process in Vantage is time-stamped, which enable a transparent audit trail to track and monitor progress. Based on these real-time reports and dashboards, one is available to view:
- The back-scanning progress
- A back-scanning KYC assessment by client type or risk category.
- Daily on-boarding KYC assessment stats by branch, RM or client type.
- Remediation progress by age analysis, reminder type and channel.
Additional benefits to the Vantage Solution include not only the data clean-up and single client view assistance but also the ability to drive a better on-boarding experience. This can be achieved through leveraging existing information (ask once give once principle), as well as better cross-sells due to accurate data.