How banks are using technology to keep pace with regulatory change, streamline onboarding processes, and improve customer service

Banks need technology that provides enough agility, scalability, and best practices to adapt and modify globally.

Today’s corporate and investment banks are facing major challenges. With extremely complex and ever-changing industry regulations, it can be cumbersome and complicated to onboard new clients and provide optimal customer service. This translates to highly involved and manual processes with multiple stakeholders, which can result in loss of revenue and impact competitive advantage.

The impact of regulation is not going to improve any time soon – after the financial crisis, global and regionally-specific regulations have only continued to evolve and become increasingly complex, which means more costly and time-consuming processes for banks. That’s why, as another SIBOS show quickly approaches, know your customer (KYC) and customer lifecycle management (CLM) will undoubtedly be prominent topics of discussion at the show. Attendees will be seeking the answer to an important question: how do you comply with ever-evolving regulations while minimizing the impact on the customer experience?

According to a recent Forrester Research report, complying with KYC regulations ranks as the biggest pain point for global corporate banking executives. This isn’t surprising, as the quick pace of regulatory change can make the typical 60-90 day onboarding process extraordinarily challenging. Once the onboarding process is complete, customers need to feel confident that their bank is fully compliant, but this too can come with unwelcome time delays as processes to comply with regulations become more complex. Banks struggle to find this balance, and it’s clear that the industry needs a more automated way to streamline end-to-end onboarding and client lifecycle processes while keeping pace with regulatory change.

There are a myriad of questions from large complex corporate and investment banks. Should certain regulatory requirements be centralized in a back office or business process outsourcing function (i.e. Anti-Money Laundering), and other rules (i.e. FATCA, Dodd-Frank, and EMIR) be part of the relationship manager interaction, or part of specialized rules and functions within a region? Where in the process and orchestration layer should CLM technology interface with KYC utilities? How do banks manage complex regulatory changes while minimizing impact on the customer and costs directly in their KYC and CLM technology? How can banks manage interdependencies between entities and underlying parties (majority shareholders, ultimate beneficial owners, and underlying entities)?

To solve some of these conundrums, banks are investing in CLM technology to gain a competitive advantage, offer transparency, and have fully unified orchestration and management of sales, onboarding, credit, KYC, and customer service. Banks are also moving toward multi-jurisdictional onboarding of clients, streamlined KYC, a global customer view, and a fully digital experience. They are trying to eliminate complexity and risk from the end-to-end onboarding process. The right technology allows banks to streamline the orchestration and adherence to regulations at the right time.

Approaches to managing the complexity of regulatory rule maintenance, complex entities, multi-jurisdictional onboarding, and end-to-end orchestration continue to evolve. Banks need technology that provides enough agility, scalability, and best practices to adapt and modify globally. The ideal solution can automatically integrate the latest regulatory updates and easily meet unique circumstances and risks using expertise from ex-regulators and policy advisors. This technology should scale across multiple functions including sales, compliance, and customer service, and fully transform the end-to-end orchestration of the client lifecycle.

Such tools can restore some of the love lost between sales, compliance, onboarding and the customer experience. Unified technology means banks can apply specific regulatory requirements at the right time in the customer lifecycle, while orchestrating front to back office functions which streamline the customer experience and time to transact. Monitoring and implementing regulatory changes in a constantly evolving environment is pricey, time-consuming and risky for financial institutions, but the right technology can drive business benefits and enhance the customer experience, while efficiently mitigating compliance risk.


Global KYC & CDD Regulations are Rapidly Evolving WebinarLearn how to evolve with global KYC and CDD regulations.

Watch the webinar