It’s no secret that manual processes make it hard to keep up with changing compliance regulations and customer demands for fast, frictionless onboarding. New regulations are seemingly added every day—from Customer Due Diligence (CDD), including Know Your Customer (KYC) and Anti-Money Laundering (AML) checks, to newer General Data Protection Regulation (GDPR) and Financial Crimes Enforcement Network (FinCEN) regulations (just to name a few).
And on-the-go customers have their own rules, which can be just as tricky. You’re now competing with the user experience of Amazon and Netflix. Your customers expect to be met on their terms, whether that is the ability to snap a photo of their ID with their smartphone to open an account or get status updates 24/7.
Although neither the regulators nor your customers are likely to be enthusiastic about giving your bank a second chance to get it right, financial institutions shouldn’t rush into a patchwork fix that isn’t built on a solid foundation; the strength of the compliance workflow will have far-reaching consequences, so it’s critical to plan ahead.
So what’s the secret sauce for banks looking to bring their onboarding and compliance processes up to par the right way?
Drawing on research from a 2018 survey of more than 100 financial institutions, a new Digital Banking Trends report sheds light on this question. The report reveals what banks see as their toughest compliance hurdles, as well as their top priorities for modernizing their infrastructure, over the next 12-18 months. The report gives an inside look into banks’ evaluation and planning process for addressing customer and compliance demands, as well as best practice recommendations, including:
- Embracing mobile capture technology, including ID verification and facial recognition, to drive engaging customer onboarding experiences
- Harnessing the power of robotic process automation (RPA) to eliminate manual human errors that increase noncompliance risk and customer defection rates
- Leveraging a unified digital transformation platform with an expandable architecture that easily adapts to fast-changing compliance regulations
- Bridging new and existing infrastructure seamlessly
- Prioritizing high-quality data and management with full audit trails