Many industries have used automation technology and digital systems to gradually shift their efforts to providing customer-focused service.
That being said, a large motivation behind why financial institutions are automating their processes is to expand what they can offer to their clients.
At the same time, this technology can be used to ascertain the identity of their new clients and prove that they are who they claim to be. This capability is needed now more than ever, as people are using digital avenues to remotely apply for financial services. Some even switch to a different bank if they find that their current one’s service is less than satisfactory.
Indeed, utilizing future-proof customer due diligence solutions allows financial companies to remain compliant with regulators, ensure that their services are accessible to legitimate clients, and prevent their establishment from being used by financial criminals. If you’re interested in the specifics of what such software can do for your company, read on.
Prioritize your customers’ safety above all
When shifting to automated processes, protecting your customers’ data is of utmost importance. In addition to hassle-free transactions, they expect their vital information to be safeguarded from hackers and other cyber-criminals. This is especially true in a world where many shady individuals and groups take advantage of banks with lax security checks to carry out nefarious activities.
To combat this, your anti-money-laundering (AML) software should have the ability to carry out extensive customer due diligence checks. This verifies the identity of all new customers, conducting a background check from the very moment someone tries to open an account with your institution. A comprehensive AML should also roll out regular updates to keep up with malicious individuals, as they are quick to come up with new ways of circumventing existing security systems.
By enforcing a tight and exhaustive verification process, your business will have higher chances of weeding out suspicious accounts. Moreover, because these vetting processes lock cybercriminals out, you’ll keep them from getting their hands on your customers’ data and assets not just now but also in the foreseeable future.
Create a better customer experience via streamlined processes
More often than not, customers pick financial institutions based on how accessible and convenient their platform is. As previously mentioned, some may even switch companies entirely if they’re unsatisfied with the services offered. Hence, consistently meeting and exceeding their expectations is crucial to successfully attract and retain customers.
Fortunately, a solid customer due diligence solution will ensure a smooth and frictionless experience from start to finish. The right workflows can decrease the number of customer touchpoints, streamlining the onboarding process. At the same time, such software can immediately gather third-party information to help your team get a clearer and more complete picture of each customer in a snap. With all these, your system will have better odds of de-risking low-risk customers while only flagging those that require manual investigation by an investigator.
Spend less time on system development and maintenance
Creating your own in-house solutions from scratch can bring certain benefits to your operations, such as ensuring that it accommodates your existing ecosystem. However, this does come with setbacks, as the development process can be time-consuming and expensive.
Worse, the costs don’t end after the initial version of the software is completed, as it will require regular maintenance and constant updates to stay compliant with regulatory laws. And should your software go down or malfunction, your team will have to take away time from more important tasks just to troubleshoot any issues. That’s not to mention the added stress of addressing a deluge of complaints from frustrated customers.
To spare your company from all these, the best course of action may be to invest in an existing customer due diligence solution by a trustworthy fintech software provider. Said provider can also help you customize your system according to your business’s specific or changing needs. Additionally, they can take care of any issues that may pop up along the way. By leaving the nitty-gritty of upgrading your operations to the digitization experts, your employees can focus on higher-priority tasks.
Implement systems that can grow with your company
As your company grows and evolves, so, too, should your customer due diligence software of choice. Otherwise, a solution that imposes too many limitations on what your customers or team can do will stifle your growth.
That said, you’ll want to pick a solution with the digital infrastructure to keep up with the expansion of your financial institution. At the same time, it should be able to scale down should you find yourself in such a position that requires downsizing or cost-cutting. By investing in a scalable solution, you won’t have to worry about paying too much or too little each month, as most software-as-a-service vendors allow you to adjust your plan as you go. You also won’t need to waste precious time looking for and switching to another provider.
It can be challenging to ensure the longevity of your financial institution, especially in ever-changing and unpredictable markets. That’s why picking a comprehensive customer due diligence solution is key to fending off suspicious individuals. The sooner you invest in one, the more quickly you can reap the benefits of these kinds of software.