ING - Client Lifecycle Management by iThink Media

Client Lifecycle Management: Creating a seamless client experience and increased operational performance utilising KYC journeys and digitisation.

PROJECT PARTNERS

C OV E R STO RY

Client Lifecycle Management: Utilising digitisation and KYC journeys to drive for a seamless client experience and increased operational performance

IVAR LAMMERS, COO Daily Banking & Group Treasury at ING, shares how digitisation and KYC are playing a key role in integrating client lifecycle operations towards seamless customer experience with increased employee satisfaction.

var Lammers has been at the global financial institution ING for the last 13 years, having started in retail payments and then moving to wholesale. More recently, he has been tasked with changing the operationalisation of ING’s client servicing operating model, driving the increase of both client experience and employee satisfaction. Ivar says, “Having gone

through a journey at ING of taking on global transformations, Know Your Customer (KYC) and ING Hubs sourcing strategy, this brought me to the role of COO. Having undertaken the earlier challenge to rebuild existing locations for ING into its tech and operational target model, this allows for thorough end-to-end understanding of how the bank is wired, from a system, data, finance

and operations point of view, to service our clients. Afterwards, having taken on the KYC challenge, we have both boosted our ING Hubs sourcing strategy, and established the ability to have endto-end insights in how our clients identify themselves and whether that matches the products and activities they have with us. It is now paramount that we utilise

and integrate these experiences, solutions and the ING Hub strategy to roll out the increasingly seamless client experience.” The KYC element in the client’s lifecycle management in Daily Banking involves complete understanding of how the client identifies itself to ING, including, amongst others, ownership

“Financial institutions are expected to grow and stretch their KYC capabilities to understand not only their customer, but their customers’ customer” IVAR LAMMERS, COO Daily Banking & Group Treasury

structure, products/accounts used, and purpose and nature of the business, which all add up to create the client’s blueprint. But, in addition, there are the transaction and product flows, across jurisdictions and counterparties, summing up the client’s actual behaviour. Ivar explains, “It has been very challenging to engineer towards having all data in place, allowing for one regulatory holistic view. Having achieved that, the next step is to land this into a sustainable ecosystem that includes intensifying and rationalising market data procurement, but also utilise this market data to evolve to a regulatory client view that extends beyond our own system’s data into a social activity graph. 7

“The challenge of market data procurement is that it is always required to use a combination of local chamber of commerces and a global source(s), and multiple times a year across multiple functions like Credit Risk, Relationship Management, Market Research and KYC. This leads to a complex of redundant costs, and the legacy API’s to these sources prevent us from rationalising. Driving towards the

“When extending the client and behavioural data with market data and technology such as artificial intelligence, advanced functions like entity resolution and network graphs allow you to better identify which activities inside and outside actually complement into an end-to-end activity schema. Having that in place is a next-level foundation to validate risk controls against, allowing for automation and extension of manual controls and an increased

“The relationship that we have with our operations partners is key. BlackSwan Technologies is a company we work with in smart data gathering”

concept of a third party data hub, that disconnects our consuming systems from trusted sources, allows us to gradually move into a ‘Netflix’ type of subscription, which we can periodically tender for. And it allows you to automate the flow of that information into the single source within your own system. Architecture securing every internal consumer has the most accurate set of equal information on one client will lead to a significant reduction of the market data procurement costs. 8

risk-based view at potential red flags. Ivar continues, “Financial institutions are expected to grow and stretch their KYC capabilities to understand not only their customer, but their customers’ customer, and, where possible, also the counterparts of them, which can potentially circle back in relation to us. These circles need to come to the surface in order for us to see end-to-end schemas. Quantexa is a provider that we work with of the applied technologies,

Is Your Decision-Making Really Backed by Data? For most business leaders, the answer is no and that is costing their organisations a fortune.

It’s well understood that there’s a significant

ELEMENT™ weaves a Data Fabric across the organisation

correlation between decision effectiveness and

that points to all data sources across different business

financial performance – 95% according to Bain. And

units, ensuring a single point of visibility across the

many business leaders believe that they are already

enterprise. This leads to faster, more informed decision-

successfully using data to determine decisions.

making.

But they may be wrong; ineffective decision-making

ELEMENT™

is leading to the average Fortune 500 company

outcomes. First, ELEMENT’s award-winning Knowledge

wasting managers’ time equating to a staggering

Graphs present entities and all the relationships between

$250m in wages annually, according to a McKinsey

them in a conceptual map, providing the context to make

survey.

important decisions. Then, ELEMENT’s Composite AI

then links this data with decisions and

technologies generate reliable and useful insights, which Decision Intelligence (DI) - a Gartner top strategic

can determine a particular decision. Finally, a continuous

trend for 2022 - can help business leaders to make

feedback process evaluates a decision’s effectiveness

increasingly

and success, and allows the system to refine the decision

combines decision-making techniques - both old

process. Depending on the sensitivity of a decision, users

and new - through the fields of data engineering,

can alter the amount of automation involved in the

data

decision-making process, including the execution of a

complex

science,

decisions

analytics,

efficiently.

machine

learning,

diagnostics, business intelligence and rule-based

decision.

systems. These techniques combine to design, model, align, execute, track and refine decision

With intelligence-enabled decision making, firms are

models and processes.

able to avoid regulator fines, ensure business continuity, increase market share, and more.

By doing so, DI provides a complete overview of an entire organisation, optimising every department, rather than AI point solutions which only optimise individual departments. DI helps organisations to track the outcomes of the decisions made, with the right metrics, as well as evaluate whether they used the best knowledge available at the time of making a decision - even if the outcome turned out badly. Gartner expects over a third of large organisations will be practicing DI within two years. Globally renowned organisations are addressing their

decision-making

BlackSwan

Technologies’

platform ELEMENT™.

challenges Decision

using

Intelligence

How ING Modernised its KYC operations with Decision Intelligence

How a Top 30 International Bank Achieved a Single Customer View

ING, the leading multinational banking and financial

A Top 30 international bank with a clientele of

services corporation, sought to future-proof its KYC operations after commiting to regulators that it would

20 million+ had to meet the regulatory requirement for a Single Customer View.

meet KYC remediation deadlines between 20212023. The organisation initiated a KYC remediation programme using BlackSwan Technologies’ ELEMENT of Compliance™ application suite, that would ensure improved data completeness, reliability and quality, reduced processing time and

Inorganic growth at the bank meant customers had been interacting with different business units, with their own distinct operational systems, resulting in data relating to the customer being unsynchronised.

a reduction in overall costs. The programme involved collecting, enriching and aggregating KYC data for banking customers for multiple business units and multiple jurisdictions using a Data Fabric approach. BlackSwan also provided the functionality to retrieve related parties from intermediate parents of the focal entity with a single click. BlackSwan made informed regulation-directed decisions readily available to ING’s analysts to verify, and then swiftly propagated the analysed results

The bank opted to use BlackSwan’s ELEMENT of Customer 360 application’s Data Fabric capabilities, processes.

cater

for

multiple

decision

The bank was able to pull data on-demand from any internal or external source in its ecosystem, consolidate it without the need to replicate the data, and enrich it using structured and unstructured data.

in both human and machine readable formats for ingestion into the bank’s internal systems using Robotic Process Automation.

The bank was able to seamlessly resolve fragmented data from dispersed sources, to create a holistic view of its customers and activities across multiple accounts, booking centres and

ING has been able to significantly reduce the

divisions, and thereby improve multiple decisionbased processes, meet regulatory requirements

manual effort required by analysts, keep track of all backlogged cases, and dramatically improve data quality and decision accuracy, while reducing

and avoid monetary fines.

operational costs and meeting its deadlines. BlackSwan has a history of providing AI-based Compliance to leading financial services firms. Read more in this article prepared in association with Accenture. BlackSwan Technologies is reinventing enterprise software through a fusion of data, AI, and cloud technologies that generates billions of dollars in economic value for leading global brands. BlackSwan offers

the

only

end-to-end

platform

for data and digital transformation on the market, and we’re able to apply our intelligence to any domain.

blackswantechnologies.ai

such as AI and advanced analytics, that helps to solve this challenge.” The point Ivar further makes is: “It is now key to recognise that, although a lot of these developments are largely regulatory driven, it opens up large opportunities for a more integrated and seamless client lifecycle management, also within our sourcing strategy. This improves the client experience and also increases employee satisfaction.” ING has a strong network and presence, and its clients have certain expectations including having one single point of contact that services the client across that network. Ivar explains, “We have therefore our PanEuropean Desk in ING Hubs that services our clients through a single point of contact. This development has given us the ability to immediately see our client’s footprint and activity, allowing us to better and proactively anticipate on the service requests put forward. It also gives the option to identify the products with our clients, and whether 12

this surfaces cross-selling opportunities.” One such client expectation is for ING to digitise its processes, using all the information in its systems to ensure a seamless customer experience. Ivar adds, “Going the extra mile with client services is very important. A client expects us to proactively anticipate our KYC activities and to integrate these with our regular client service calls, evolving us to perpetual KYC. All this, as well as using all available information to minimise our eventual KYC client outreach requirements. Using the digitised environment in this way helps us to think ahead of the curve and be proactive.” And this is the evolution that ING started to roll out in its Hub strategy. Ivar enthuses, “With both our Pan-European Desk and our KYC activities sourced into one single location, combined with the data maturity, we’ve been able to really start offering that seamless client lifecycle management out of ING Hubs that our clients expect from us.” The further advantage of really knowing your customer relates 13

Helping you build value and reinvent the financial services value chain

You want to build value in your business. But you aspire to go further and reinvent the financial services value chain. Delta Capita are dedicated to helping you do this. We provide consulting, managed services and technology. We help top financial institutions around the globe comply with regulations, simplify operations, reduce costs, innovate business models, and get the best from leading fintechs. Delta Capita have a unique combination of financial services experience and technological innovation. We use our parent company Prytek’s substantial fintech portfolio to develop new services and tools. This supports our mission to help our clients build value to be the best that they can be and reinvent the financial services value chain. By providing a business operating platform-as-a-service (BOPaaS), we empower your business across the chain. Instead of selling software subscriptions, we deliver entire operation solutions. Our managed service propositions include client lifecycle management, structured retail products, post-trade, and pricing and risk. Our BOPaaS ecosystem combines innovative technology and powerful managed services in ways that help you boost growth and streamline business operations. Contact us through our website and speak to one of our experts

www.deltacapita.com

How financial firms can digitally transform to reinvent the value chain Digital transformation continues to have an extraordinary impact on financial services – and create fantastic opportunities for innovative companies.

further – and they can help you do it powerfully and efficiently by combining expertise with technological innovation.

The significance of transformation continues to increase, with 92% of executives saying its importance will rise in the next 12 months, according to 2022 research by Harvard Business Review.

Tom Kastelein, CEO Benelux at Delta Capita, said: “Transformation is and will continue to alter all parts of the value chain, including customer interface, back office, and infrastructure. It will also make the value chain more efficient, effective and secure.

But, too often, financial firms’ transformation projects fail especially those that rely on internal resources rather than using help from external expertise and technology. This is partly because finance firms find it hard to secure talent to support new digital initiatives.

“The ability to reconfigure the value chain will affect financial providers differently. But they all need the right industry expertise, operational resilience and exceptional technology to achieve it.”

By not finding the necessary talent or the right partners, they risk losing their ability to support fast evolving business priorities. Ultimately, they will lose competitive edge. HBR said one significant factor in those who succeed is that they have thought about what partners they need.

Impact goes further Digital innovations have enabled financial firms to address longstanding challenges in financial services - for example, cutting out intermediaries; fixing inefficient information channels; cutting costs; and vastly improving user experience. This is all to the huge benefit of consumers and the most innovative providers. Digital innovation has now gone further by starting to alter the financial services value chain, according to a 2022 World Bank report. The forces driving these changes, and potential outcomes for industry structure, will help providers further harness the benefits of fintech and reduce or mitigate risks.

Solving the challenges Partners are available to help you drive transformational outcomes

Kastelein said providers also need to move away from existing proprietary models toward mutualised managed services to enable healthier, betterperforming transformations. A partner with the right experience in digital transformation can also provide a mutualised supply chain that will help firms boost return on equity. “Such a partner can help them use digital transformation to improve compliance, simplify operations, reduce costs, innovate business models, and get the best out of leading fintechs,” he said.

Reinventing the value chain Delta Capita is a leading global consulting, managed services and technology provider. We offer a unique combination of financial services experience and technological innovation. Our parent company Prytek’s substantial fintech portfolio helps us develop new services and tools. This supports our mission to help our clients build value to be the best that they can be and reinvent the financial services value chain. By providing a business operating platform-as-a-service (BOPaaS), a trusted mutualised service for financial services, we can help empower your business across the value chain.

“Transformation is and will continue to alter all parts of the value chain” Tom Kastelein, CEO Benelux at Delta Capita

Instead of selling software subscriptions, we deliver entire operation solutions through proprietary technology and expertise to top financial services companies worldwide. We offer managed service propositions that enhance delivery capabilities and reduce fixed costs. These include in client lifecycle management, structured retail products, post-trade, pricing and risk. Delta Capita’s solutions include tools to support structured product manufacturing processes; digital enablement featuring live collaboration, visual IVR, digital forms and e-sign; and a client lifecycle management platform that automates processes and generates business intelligence. Delta Capita also offers an open innovation platform that accelerates the innovation adoption cycle. Plus, we have a team of data experts who can analyse your data assets using up-to-date, advanced methods to unleash your potential.

to the now data-driven connection between Client Due Diligence and Client Activity Monitoring. It allows for that data-driven instant view on whether the client behaves as it had previously identified itself. Ivar explains, “Bringing the data points together in one place means you can capture the transactional behaviour of your client and compare the purpose and nature of their business, allowing a more 16

automated and data-driven identification of anomalies, without having to go to the front office or the client. As part of our client outreach, we need to ask clients questions to identify them, but clients are increasingly expecting us to utilise digitised processes.” So, what does the organisation of ING look like? Ivar answers,

“Delta Capita helped to drive this within a nearshore/offshore combined setup, focusing specifically on overdue KYC statuses and remediations” the global end-to-end value chain to a product, utilising ING Hubs for our operations. The regions are the consumers to their local markets for these global value chains, with local operations footprints to comply with local regulatory uplifts that are not covered by the global value chain operation.”

“If you consider the Wholesale COO column, it is essentially a matrix of products and regions. We have three product COOs; Daily Banking & Treasury, Trade Finance, and Lending & Financial Markets. In geographies, we have the Americas, EMEA, and Asia & Pacific. They all have a regional COO, with a local country COO below. If you look at product operations, we set up

ING is following a sourcing strategy where the back office is largely organised in centralised operations hubs. Ivar says, “So far, we have been very successful. We have harmonised all local flavours of our operational activities, and sourced these to ING Hubs. Building on that success, we are now in the phase where leadership profiles are starting to land in ING Hubs, bringing the design of the activity close to its execution, to ensure we maintain our efficiency. It is important for us to offer a framework that allows people to grow and acknowledges their competencies, by providing a job 17

perspective across the full value chain.” Given the challenge of matching everything in terms of demand and capacity in a specific location, ING also works with selected partners for its operational activities. Ivar says, “The maturity model that we follow is to start on a times and material basis, but to move after the initial

offshore combined setup, focusing specifically on overdue KYC statuses and remediations.” Ivar continues, “The relationship that we have with our operations partners is key. BlackSwan Technologies is a company we work with in smart data gathering. Their solution allows us to enter a user interface into a platform that is connected to all (trusted) public

“ING works with vendors that collaborate with ING in together driving the maturity, quality and efficiency of the delivered services, of which we share the benefit. Genpact has, for instance, helped us to drive this setup for Client Due Diligence”

learning curve to a price-per-ticket basis. This allows to share the entrepreneurial and performance risk across ING and vendor. ING works with vendors that collaborate with ING in together driving the maturity, quality and efficiency of the delivered services, of which we share the benefit. Genpact has, for instance, helped us to drive this set-up for Client Due Diligence. Delta Capita helped to drive this within a nearshore/ 18

sources, which are automatically loaded into our systems. With BlackSwan Technologies, we are able to identify all that is required across sources at once and understand which source we should prioritise over another. We historically put information into our client system manually, which is a huge amount of work. By automating and robotising this process, the client due diligence analyst saves hours of work

Wasted moments

Moments that count Genpact is transforming financial services through the power of digital operations, data, technology, and artificial intelligence. Our innovation and industry knowledge allows financial institutions to anticipate customer needs, reduce fraud, and deliver seamless experiences, enabling people to focus on what matters most.

Discover how we can make a difference together. 19

Quantexa’s Contextual Decision Intelligence Platform

Data Fusion

Entity Resolution

Network Generation

Advanced Analytics

Data Visualization

Ingest large volumes of data across internal and external sources

Connect and match data with accuracy never before possible

Create a dynamic graph based view of the bigger picture

Build analytics models using AI, based on real-world expertise

Visualize and explore your data

Internal Data

External Data

Trusted by the world’s leading financial institutions to power Risk & Compliance, Data Management, & Customer Intelligence operations

Find out how to put Quantexa's Contextual Decision Intelligence platform to work.

per client, and gains more job satisfaction. We are currently in the final test phases and are aiming to roll this relief out.”

perspective now together allows us to see how it presents itself in terms of data, cost, and revenue.”

Ivar highlights the importance of understanding the value of connecting the data, as well as connecting the business and the people behind it. He continues, “Where larger enterprises tend to build silos, we need to break them down and connect the

As far as the challenges are concerned, Ivar says that dealing with regulators and global data privacy can be challenging. He explains, “On the one hand, we have our operations model, but on the other hand, we also have a global client coverage view.

“Quantexa is a provider that we work with of the applied technologies, such as AI and advanced analytics” people into a collective brain, opening up opportunities for a more seamless client experience. That’s where the 1 + 1 = 3 comes in. We are eliminating handovers between front and back office, allowing the front office to focus on sales activities, while keeping data to the back office. Also, we have commenced our pilots to start performing client outreach out of the back office, to drive the customer experience by leveraging all the information we have and reducing the burden on the client and front office. Having the end-to-end client lifecycle management from an operations

For a client operating across a jurisdiction with multiple products, you need a full global view, but the countries need to agree that the data in their local systems can be released to contribute to this global view. This is what is known as data liberation process. With the increasing evolution of technology, it becomes more abstract for functions to understand what their data aggregates into, and what views out of this are going on record. This needs to be navigated very carefully. Having said that, failure to digitise does not seem to be an option.” 21

Looking ahead to the future, Ivar mentions sustainability and points to two angles pertaining to the topic. He concludes, “Using low-cost countries for operations handling, for instance, obviously requires us to also give back to society. ING is evolving to, next to donations, also drive Environmental and Social Responsibility as an integral and repetitive part of our partnerships. An example is the Udayan Care program in India that is an integral part of our partnership with Genpact, which provides end-to-end education to local girls and support for their families. ING has, as part of this initiative, also built a network of colleagues offering coaching, workshops and interview training sessions to these girls, so they can contribute back to their local environment. “Furthermore, with sustainability now being translated into regulations, it might become a new KYC angle. And we have the opportunity to be ahead of the curve here.” For further information, visit www.ing.com 22