Taking the Complexity out of Compliance: Robotic Process Automation in KYC & AML
Estimated Reading Time: 4 minutes
On Thursday June 29th, Marcus Evans Webinars will be partnering with Excelian Luxoft Financial Services to bring together leading industry experts on Robotic Process Automation from Barclaycard, Hendaia Services and SunTrust Bank to discuss its application within onboarding compliance processes within the financial services industry.
The Status Quo: Manual Processes and Customer Dissatisfaction
The initial interactions that a financial institution will have with its customers are the most crucial in the customer experience journey. Of course, every company in operation wants to ensure that their customers are given the smoothest onboarding experience as possible in order to better guarantee overall customer satisfaction and retention, from which growth and profitability will follow.
Yet the onboarding process within the financial services industry is often an exceptionally fraught one, as the requirement to determine the trustworthiness and legitimacy of every potential customer requires a whole swathe of manual identity checks to be made against numerous external public record databases, and for the corresponding results to then be accurately uploaded to the institution’s internal systems.
These processes, known as Know Your Customer (KYC) are vital in combating identity theft, financial fraud and criminal financing and they are intrinsically linked to the Anti-Money Laundering (AML) objectives and practices of financial institutions. However they are consistently undermined by human input errors and customers are left frustrated by constant requests for more documentation, including bank statements and other personal information.
This status quo is increasingly being seen by financial institutions as an unsustainable way forward. Customers today expect a frictionless interaction with businesses, and the onboarding experience with a financial institution is often anything but frictionless. The reliance on manually-driven processes invariably makes errors more likely, which in turn considerably raises the risk of non-compliance that ultimately leads to hefty fines, delays in the customer onboarding process and the loss of sales.
“The average financial firm spends $60 million per year on KYC and $58 million per year on client onboarding. Some firms spend more than $500 million on these activities. But although the costs of compliance are high, the costs of non-compliance are greater. Since 2010, banks have paid more than $300 billion in fines for non-compliance” (Kofax, ‘KYC Sparks and Automation Revolution’).
The Future: Intelligent Enterprise Automation
Financial institutions are keenly aware of how the manual status quo is becoming unsustainable with the current pace of regulatory demands when it comes to KYC processes. The need to allocate resources to oversee these complex, non-cash generating activities is becoming ever-more costly and takes time away from working on other strategic priorities.
One tool that is being looked at with increasing interest by financial institutions considering ways to streamline their customer onboarding experiences is Robotic Process Automation, or RPA.
Put simply, RPA represents software that transforms an organisation’s manual processes in to automated activities. The “robots” at use in RPA mimic the actions that a human processor would take whilst performing tasks across a number of software applications. In a KYC context, RPA can ensure a 100% accuracy rate during those crucial initial interactions with new customers. Thus considerably reducing the risk of non-compliance and meeting the expectations of customers for a smooth onboarding experience.
Bringing Together Industry Leaders to Discuss the Opportunities Ahead
To discuss the opportunities presented by RPA integration, we have assembled a panel of the foremost voices in the field of RPA. Our panelists are actively involved in the implementation of RPA within compliance procedures at major financial institutions. As such, they are perfectly positioned to provide expert analysis on the RPA future, drawing upon first-hand experience in the real world and bringing you valuable insights that cannot be found anywhere else.
- Challenges in KYC and AML: We begin with examining the evolution of regulations and the impact it’s had on onboarding.
- Identifying processes which are suitable for BPM & RPA implementation: We ask the panel to share examples of key drivers in establishing BPM and RPA processes.
- Developing a blueprint for successful deployment: The panel examine KPI’s, change management and the impact of RPA & BPM on operations.
- Establishing a Center of Excellence (COE): We close the discussion by reflecting on the experiences of our panel in setting up their COE, and discuss what remains to be accomplished.
To register your interest for this exclusive webinar, follow the link below where you can quickly secure your spot. Attendees will be able to submit questions for our panel ahead of the live event, as well as participate in a live Q&A with the panelists. A full recording will be made available via download to those unable to make the live event.
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