Why Onboarding is More Complex Than You Think


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Everyone thinks they know how to define “good onboarding” – a process that delivers a simple and seamless customer experience. But there’s another onboarding dimension where many banks are failing: risk assessment.

Every bank and financial institution must comply with federal and state regulations, particularly anti-money laundering (AML) guidelines. But if their risk lifecycle isn’t orchestrated properly, they’re squandering their money and staff hours, and making themselves vulnerable to a regulatory disaster.

Let’s quickly sketch the ideal risk lifecycle. The scenario looks something like this:

  • When a potential customer tries to open an account. the bank swiftly acquires and analyzes the prospect’s financial history and other background validation data.
  • After that assessment, they’re able to create a precise customer profile that helps them recommend  products, and make beneficial decisions.
  • The new customer experiences a smooth and personalized onboarding journey.
  • Internally, the organization’s risk processes meet compliance regulations without placing an onerous burden on their staff.

That’s the ideal. But how common is it?

KYC: Compliance and Complexity

Financial institutions of all sizes face risk management challenges. Compliance regulations are complex; banks must also navigate high data volumes and optimize their processes to avoid eating up staff hours with manual tasks.

Adding another layer of complexity is KYC data for business account due diligence.  Many institutions struggle with a lack of KYC data. Others have difficulty translating their KYC data into comprehensive insights that can identify relationships and attributes when assessing risk and searching UBOs. These pain points can hinder risk profiling and productivity, driving up costs and driving down profile accuracy.

After onboarding, financial institutions must monitor customers to spot any behavioral changes or suspicious activities. But static customer risk assessment and KYC systems typically can’t conduct ongoing evaluations or keep up with changes to regulatory requirements. The end result: decisions that may not withstand regulatory scrutiny, potentially leading to fines or other repercussions.

Rulesware Risk Takes Control of Complexity

Rulesware Risk automates the risk process lifecycle, providing a more accurate, secure, and frictionless onboarding experience. New customers undergo smarter assessments, integrated risk analysis and faster decisioning. The onboarding experience is faster and more convenient on the front end and more efficient and compliant on the back end.

By automating the risk lifecycle end-to-end, Rulesware Risk:

Makes data management much easier.

If your organization is collecting data from different sources and exchanging it between multiple systems and departments, Rulesware Risk can eliminate that chaos. Rules-based processes, document recognition tools and OCR parsing can dramatically reduce manual work while making it easier to expedite new account cycles.

Pairs flexibility with accuracy.

Rulesware Risk reduces compliance headaches with configurability that mirrors evolving regulations while still guiding objective, risk-based decisions.

Increases staff satisfaction and productivity.

Instead of working from a laborious Excel-based risk system, your team can automate the tedious tasks of the risk lifecycle. Your organization can scale more easily and your staff can focus on more important things, such as managing high-risk customers.

Provides rich, centralized CRM capabilities.

From complicated corporate risk profiles to customers with volatile financial histories, Rulesware Risk can handle a variety of networks, legal structures and jurisdictions. Centralized risk profiles offer a 360° view of risk data, risk history and compliance information in one place, so all your staff work from the same information.

Accelerates onboarding.

Rulesware Risk integrates with Launchpoint, offering a fully funded, “one and done” enrollment in 20 minutes or less. Your new customers can enroll on the channel of their choice while benefiting from personalized product and cross-sale recommendations.

Shares fresh and valuable insights.

Risk analysis and accurate compliance both depend on clear visibility –  from staff to auditors to third parties, financial institutions need full transparency into risk factors across their organization. Rulesware Risk offers comprehensive reports and analytics that provide precise insights.

Seamless Onboarding, Smarter Risk Management

Automating your risk lifecycle does more than unlock a better onboarding experience – it can improve account enrollment and retention, increase staff satisfaction, and spare you from a regulatory nightmare.

Interested in protecting your financial services organization while offering a frictionless customer experience? Click here to learn more.

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