Industries
Solution
Cognitive Business Operations
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Highlights
- In today’s fast paced world, customers demand swift, streamlined, transparent and effortless process that provides them with access to products and services instantly
- Poor management of client data in KYC process often leads to repeat customer contacts resulting in bad customer experience
- Financial institutions need to leverage technology to provide better customer experience which is friction-free, faster, automated, digital, and contactless
On this Page
Introduction
Customer experience management involves implementing strategies and leveraging technology to continually enhance customer interactions and their overall experience with a bank.
Client onboarding is a vital aspect of customer experience management, as it serves as the customer’s first interaction with the bank. This initial encounter leaves a lasting impression, making it crucial for banks to execute the process effectively and ensure a seamless experience.
In today’s fast paced environment, customers expect a streamlined, transparent, and easy process that provides them with access to products and services instantly; therefore, banks must be efficient and effective in managing their KYC processes without impacting customer experience.
KYC process
There are multiple touchpoints throughout the Customer Lifecycle Management process in a bank.
As part of the onboarding process, customers are frequently contacted during processes such as initial due diligence, customer screening and profile completion stages. The reasons for contact may vary from KYC documentation to KYC information gathering requirements and regulatory documentation. Customer interactions are typically facilitated through relationship managers. There are some banks that allow KYC analysts to directly get in touch with the customer for documentation. These interactions or touchpoints can be direct, or indirect depending upon the advancement of technology used in each bank.
Subsequently, customer contacts are also made for KYC purposes during risk management activities such as periodic reviews, event driven reviews as well as policy or regulator driven remediation programs to name a few.
Challenge
Below mentioned aspects indicate clear mismanagement of client data leading to repeat customer contacts resulting in bad customer experience:
- Lack of multi-channel client contact options
- No proper management of the documentation sourced through the contact made
- Improper document management tools and cross divisional document exchange which do not enable reuse of existing KYC documents
- Disparate systems and applications – Industry benchmark survey suggests that around 40% of banks had more than 80% of their customer data stored across separate systems within the organization (core banking systems, KYC applications, document management, workflow tools, transaction monitoring tools, MIS etc.)
- Lack of uniformity in data – banks have multiple business divisions, products and services which they offer to clients. Each division/product/services have their own set of data requirements
- Lack of configurability – Many banks still use dated or legacy technology platforms which lack configurability to meet rising customer and regulatory expectations
Solution
Leveraging technology can help in enhancing customer journeys in multiple ways
Data and Document Procurement – Data procurement can be automated using advanced web crawlers which can obtain information from external sources and keep the data populated on a real–time basis. This limits the requirement to reach out to customers.
Data Management - KYC process inculcates massive amounts of data which are both structured and unstructured. There are a lot of partial/duplicate records created for related party profiles for different entity types due to lack of ID&V document. Additionally, there are documents that feed data to core banking system with expiry dates. Artificial Intelligence can bring in cognitive solutions that can analyze and manage this data as part of document management. This minimizes the need to repeatedly reach out to customers for documents requirement across segments/divisions of financial institution.
Risk Assessment – Real-time risk assessment automation can be built into a system that can track corporate actions, real-time changes and populate data and document requirements using a rules engine. The results can be triaged through an RPA to identify risk relevant and non-risk relevant changes, thereby reducing the need to contact clients.
Workflow Management – End-to-end Client Lifecycle Management process flow can be automated using workflow management tool from front office, onboarding team, business relationship managers, compliance and end customers. Workflow tools can enable customers to populate information and documents required to review/onboard an entity. Email chasers and tracking can be drastically reduced with workflow management tool.
Self-help portal and Chatbots – Self-help portal and chatbots can help customers connect with KYC analyst and exchange information/documents seamlessly without the need for emails, thereby playing a massive role in improving customer experience when applying for new products or services.
Conclusion
Client experiences management is evolving rapidly and the future belongs to those financial institutions that can provide friction-free, faster, automated, digital and contactless customer experience. Is your financial institution on the right track?
