In the evolving banking sector, improving customer experience is pivotal. According to industry insights, 85% of financial crime compliance executives are now prioritising customer experience.
According to Encompass, to this end, banks are compelled to embrace innovative Know Your Customer (KYC) technologies that not only adhere to stringent regulatory demands but also elevate client interactions considerably.
The implementation of Corporate Digital Identity (CDI) stands as a groundbreaking advancement in this area. By integrating intelligent data sourcing with automation, CDI transforms the KYC landscape.
The approach begins with a meticulous assessment of publicly available data, which significantly reduces redundant client interactions, thus lessening the administrative load on clients and smoothing the customer journey from the outset.
The innovation extends with platforms like CoorpID by Encompass, a robust document management tool and digital vault. This platform empowers clients to manage their documentation efficiently in one centralised location, granting banks unprecedented visibility over the process and minimising repetitive document requests.
Such automation of outreach activities means that clients are contacted only as necessary, through standardised communication protocols, thereby reducing delays and enhancing the transparency of the onboarding process.
Further refining KYC procedures, Intelligent Document Processing (IDP) automates the sorting and analysis of both structured and unstructured data. IDP utilises pre-populated forms to streamline client communications, cutting back on the need for clients to supply information multiple times and thus accelerating the onboarding sequence.
The effective management of data is critical in maintaining the integrity and utility of a CDI. Through the standardisation and normalisation of data, banks can ensure consistency and accuracy. Advanced techniques in hierarchical rules and entity resolution contribute to a clear, unified corporate client profile.
This coherent organisation of data helps in maintaining a consistent risk profile for customers, allowing banks to make swift and precise decisions, thereby enhancing their risk management capabilities.
The strategic deployment of CDI can significantly boost the customer experience. By curbing the frequency of client outreach, CDI minimises customer disruptions, facilitating a smoother and faster onboarding experience. Such efficiencies not only enhance customer satisfaction but also positively affect the bank’s Net Promoter Scores (NPS).
With potential reductions in client abandonment by as much as 40%, and faster service delivery, banks see a marked increase in client trust and loyalty.
Corporate Digital Identity marks a significant shift in how banks manage customer data and interact with clients. By harmonising intelligent data sourcing with strategic data management, banks are equipped to forge not only comprehensive and accurate customer profiles but also an improved regulatory compliance framework.
The reduced need for KYC outreach underpins a superior onboarding process that boosts customer insights and overall satisfaction, underlining the profound impact of CDI on modern banking practices.
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