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Digital Experience for Enterprise Level Banks

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The Importance of Customer Experience for Banks

The COVID-19 pandemic has accelerated digital transformation. As a result, digital customer experience plays an increasingly important role in the competitive landscape. This is no less true in the banking and financial services industry.

Customers expect a digital experience that is straight-forward, simple and seamlessly integrates functions across departments and channels. Whether their expectations are met or not, directly influences future buying decisions, brand loyalty, and whether they recommend you to their friends and family. Which is why banks who are looking for a competitive edge, need to implement technologies that can help them deliver. 

Onboard customers quickly

Enterprise banks have built their business on brand loyalty, but in today’s environment, consumers want more than a brand they know and trust. Many banks have already been investing in innovative technologies, not only due to regulatory pressures but also the competition of newer, more tech-savvy Fintech banking options disrupting the market. 

The first and arguably, most important customer touchpoint is onboarding. It’s the initial piece of communication which sets the tone of the business, the relationship with the customer and makes a lasting impression. According to a Deloitte survey in 2020, 38% of customers see user experience as the most important factor when choosing a bank.  However, Anti-Money Laundering and Know Your Customer (AML/KYC) processes are often inefficient, using time consuming and labour intensive methods of collecting client documentation and manually searching for adverse media events. 

Fortunately, adverse media data and technology can help banks achieve better efficiencies in the screening and monitoring process to improve customer experience. For example, Santander UK cut their customer onboarding cycle time by 80% after implementing use of ComplyAdvantage’s AIM Insight adverse media technology which has a 14 point FATF-aligned taxonomy to surface only true adverse results to analysts quickly and efficiently.  

Regulatory expectations

Just as fast as new technologies are helping banks improve their customer experience, so too are global regulatory requirements growing and changing. 

In the EU, the 6th Anti Money Laundering Directive (6AMLD), which comes into force from June 3, 2021, compels firms to perform enhanced due diligence processes for high-risk customers. This includes “carrying out open source or adverse media searches” and encourages the use of automated adverse media screening to do so.

Adverse Media Screening & Ongoing Monitoring

Manual adverse media screening is time-consuming and ineffective; it’s all too easy to miss important, relevant information and fall short of regulatory requirements due to the inherent limitations. 

Automated systems on the other hand, such as those powered by now established (but still rapidly improving) technology like artificial intelligence (AI) and machine learning (ML), optimise the screening process. In addition to saving time and cutting costs, ML-driven automated screening helps financial institutions mitigate risk and conduct thorough, diligent investigations into potential clients. Through natural language processing, they are also able to ignore irrelevant news and flag results that may require additional scrutiny from a human analyst. 

Systems can easily be configured to carry out thorough searches and conduct daily ongoing monitoring of both potential and current clients, and any information discovered will automatically be categorised according to its context in order to help drive relevant & timely alerts. 

At ComplyAdvantage we have incorporated the FATF guidelines into the design of our own categorisation taxonomy for Adverse Media Screening. Machine-Learning backed categorisation like this can take your customer experience to the next level and give you full coverage and the confidence that comes with reduced risk exposure. 

Originally published May 18, 2021, updated November 18, 2021

Disclaimer: This is for general information only. The information presented does not constitute legal advice. ComplyAdvantage accepts no responsibility for any information contained herein and disclaims and excludes any liability in respect of the contents or for action taken based on this information.

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