BANKING TECHNOLOGY
ONBOARDING AND KYC TRENDS IN 2021
Digital transformation is no longer an option Client engagement should allow for both internal collaboration across a financial institution’s departments while enabling seamless interaction with clients says Valérie Bauloye Head of Channels & Partner Management, Appway
H
ow did COVID-19 impact the innovation agenda of the financial services industry?
Innovation dominated strategic priorities before COVID-19, though with shifting emphasis. Although more hybrid interaction models were emerging, the physical interplay was “Plan A”, while digital engagement, “Plan B”. • In 2020 financial businesses had to revise and revamp digital strategies, along with the tools and technology to adapt to the shift in circumstances. • Digitally empowered human interaction is now “Plan A”. • The focus goes beyond ‘innovation’ and is now fixed on ‘transformation’. Digital transformation is no longer an option; it is an imperative.
What have been the most significant impacts of COVID-19 on financial institutions’ approach to the digitization of onboarding and KYC matters? We saw three things, calling them The ABC. The first, to remain agile and adaptive to the compliance process. Due to increased digital use, more fraud occurred, and they had to manage that risk. Then back to front
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and the connection to disconnect were more needed to optimize the digital impact on the front end, up to the back end of the bank. Finally, client engagement. Banks must find the right balance between digital and physical services for the client.
The A-B-C
Agile and adaptive compliance processes: • New risks emerged as criminal activities proliferated, crossing from the physical to the online world, with schemes and patterns that fraud detection tools were not prepared or equipped to red-flag. • Difficulty keeping up with unprecedented amounts of amendments to legislation and rules made due to the global emergency, and consequent obstacles in granting compliance. • Initially, a lack of seamless remote access the systems that compliance officers need to screen customers for AML and EDD, ongoing activities like transaction monitoring, SAR, etc. or to perform recurring regulatory reviews like KYC & KYB suitability, FATCA, CRS, and more. This sudden shift caused backlogs and workload peaks, exposing firms to security issues. A huge burden on compliance and risk management functions. • Companies must turn risk management
Banking and Finance news in the MEA market
Valérie Bauloye Head of Channels & Partner Management, Appway
into adaptive due diligence to support customers and employees more flexibly, rather than to interact in a pre-defined way. • Adaptive and outcome-based regulatory compliance is going to be a theme for quite a while. Back-to-front operational resilience • From initial interactions with a client, to all the next actions and decisions that happen internally in the financial business. Digitally enabled CLM connects clients, financial institutions employees, data and systems beyond the firm’s boundaries, making crucial workflows resilient to business disruptions. • Connect the disconnected. • Technology should swing seamlessly between automation and collaboration and offer the possibility to dynamically adapt to the right working pattern, depending on the specific client and workflow. Client engagement • The ‘new normal’ must include remote channels and digital products to engage with investors, allowing for business continuity and resilience, while addressing all the varied client needs from the simple to the complex. • N eed to allow for both internal collaboration across a firm’s departments and seamless interaction with clients from within the tool itself, enabling advisors to identify critical moments in the customers’ lives and automatically trigger the necessary supporting workflows. • The extensive use of digital and real-
