Archive for February, 2018

Speaker Interview: Johannes Hennekeuser

Posted by

Johannes Hennekeuser, Head of Digitrans, IMTF

How close is the financial services industry to achieving standardisation in KYC and identity authentication processes?

  • In the area of ID authentication we see considerable progress towards standardisation. In many countries, the practice of video authentication is already accepted by the regulator and has been implemented by many banks
  • Initiatives towards a Digital Identification of every citizen have started in many countries and will ease the use of digital (self-) services; among first movers we see Aadhaar in India, and the SwissID in Switzerland.
  • Regarding KYC, requirements are getting more complex and laborious, making standardisation difficult due to differences among jurisdictions. The opportunities here are around automation. IMTF is able to automate processes and information searches successfully with the help of AI and semantic and linguistic technologies.
  • How can firms continue to deliver on their KYC and AML obligations within an increasingly demanding regulatory framework?

  • Only an agile setup that constantly and easily adapts to changes can cope with these requirements.
  • IMTF has built a modular and comprehensive platform that can easily be configured and deployed to increase the adaptability to changing regulations (IMTF RegTech Platform).
  • Banks are often using a variety of compliance systems that neither interact nor offer services (APIs). The IMTF RegTech Platform includes an integration layer that brings together vendor-specific APIs and file-based interfaces with rule logic and workflows.
  • What are the best ways firms can implement new technology to reduce KYC compliance costs while retaining customer loyalty?

    Banks are facing challenges here on all fronts, but a few new technologies can help to
    improve the end customer experience:

    Process Automation:

  • By automating manual work for screening and alert processing and replacing siloed solutions with an end2end vision regarding compliance and risk, your teams and systems can be aligned with your regulatory objectives.
  • Data remediation:

  • Create structured, usable data out of your existing low-quality, and unstructured information spread across multiple systems and documents based on an adequate Business Object model.
  • People:

  • Align, educate and equip staff to handle top-priority tasks where human expertise and decision-making is needed. Technologies such as collaboration tools and adaptive case managers help to ultimately improve the accuracy and efficiency of your people.
  • How can firms turn the compliance burden into competitive advantages?

  • While regulators force banks to increase documentation and background research, the additional data collected can also be used to enhance the customer experience and extend product sales.
  • In the IMTF RegTech Platform, we use advanced profiling to both improve fraud detection capabilities and allow a bank to learn more about its customers.
  • With ICOS/2 it’s possible to do segmentation and peer group comparisons, making it easy to target processes, actual customer requirements and identify opportunities for additional product offerings.
  • A fully digitalized onboarding process with self-service features ultimately improves the bank’s image and reputation.
  • How can firms most effectively limit client impact when complying with the KYC refresh process?

  • Banks are required to collect more data and do background checks, so theoretically this would require additional customer questions and documentation. But, by using certain automation technologies, many of these steps can intelligently be done in the background with little customer impact.
  • IMTF offers a Semantic Search feature that is initiated automatically once an enhanced due diligence is required. Seconds later, it delivers targeted content from commercial lists and the web with guaranteed accuracy and compliance, enabled for use anywhere.
  • Case Managers are extremely flexible and support both routine processes and ad-hoc activities. BPM systems don’t have the flexibility to break out of the pre-defined flows and need to run the customer through multiple loops, but our Case Manager allows you to adapt on the fly while also fulfilling regulatory requirements.
  • Why will you be speaking at Finance Edge’s KYC & AML Summit?


    We are excited to participate in lively discussions on what it takes to “reinvent and support” processes from identity authentication to KYC automation and enhanced due diligence. As a RegTech pioneer with 30 years in the market, we will be sharing our best practices for Client Lifecycle Management, KYC/EDD, and AML.

    Speaker Interview: Timothy Vincent

    Posted by

    Timothy Vincent, Solutions Engineer Manager EMEA, DataStax

    How will the increased use of open APIs shape the financial services market, and how will it impact different market players in both the short- and long-term?

    The increased use of open API’s will impact banking institutions of all sizes, opening up financial services and payments markets to new competitors and service providers. Open API’s will provide new opportunities to make use of banks’ internal data and external market information in real-time and at scale as part of delivering customer services.

    Which activities should banks be prioritising in the wake of open banking?

    To meet the requirements around open banking, consolidation of data should be a priority. By looking at how to manage data at scale, banking IT teams can implement new cloud applications that can meet new customer experience expectations. Without the ability to consolidate data effectively, understand the relationships between the data elements, and achieve all this in real time, banks will find it difficult to implement new services that customers will value and face a potential loss of those customers to competitors.

    What opportunities does Open Banking present, and which commercial strategies will thrive in the new environment?

    Opening bank systems to third party access is a huge risk unless banks organise themselves to leverage data as a differentiator; this is the opportunity. This goes beyond looking at current data sets that are held in individual silos and instead involves thinking about how to use external and internal data sets together. The alternative is to let competitors take this approach. The strategy is to hold the data in an operational data layer to have a 360 view of your customers to better deliver a fully personalized experience in the context of where they are on their journey with the bank right now.

    How can firms overcome the security and privacy concerns associated with data sharing?

    This is a hot topic at the moment with the deadline of having a GDPR compliant strategy looming fast, especially when looking at hybrid cloud or multi cloud architectures. You need not only a data platform that comes with advanced security, encryption, access controls, audit trails, but also the ability to maintain data autonomy. For example, in a hybrid cloud architecture you need the ability to control which data resides on premise and which data resides in the cloud. DataStax has the ability the address this and other data autonomy requirements.

    What are the best strategies to encourage customer engagement?

    Having a customer-centric strategy where an organisation demonstrates that it has robust data privacy capabilities that are to the benefit of the consumer is a major USP that will drive customer engagement.

    Why will you be speaking at Finance Edge’s Open Banking Summit, and what do you hope to get out of the event?

    As a software vendor it is vital for us to be in regular contact with customers and potential prospects in order to better understand current market trends and emerging market requirements.

    Speaker Interview: Steve Boms

    Posted by

    Steve Boms, President, Allon Advocacy and Advisor to Envestnet | Yodlee

    How will the increased use of open APIs shape the financial services market, and how will it impact different market players in both the short- and long-term?

    Open Banking, powered through Open APIs, puts the consumer, who is now fully empowered to use their own financial data to take advantage of whatever products or services they choose, at the center of the financial services ecosystem. In this new, innovation-driven environment, those market players that provide solutions to consumers where they most demand them will flourish, whether they are traditional banks or fintech firms. Incumbency will no longer be a significant competitive advantage.

    Which activities should banks be prioritising in the wake of open banking?

    The first order of business remains ensuring that the APIs that power Open Banking are up and running and reliable so that consumers can fully benefit from the new ecosystem.

    What opportunities does Open Banking present, and which commercial strategies will thrive in the new environment?

    The beauty of Open Banking is that we don’t yet know its full potential; we only know that the benefit to consumers will increase in the long run. Over time, it will enable account information and payment use cases driven by consumer demand that we couldn’t envisage today. Who would have imagined just 10 years ago that we would be able to conduct almost all of our personal banking using a mobile phone? While we can’t know what the technology landscape will look like 10 years from now, the Open Banking ecosystem provides the consumer the right to use their financial data in whatever manner they choose, and ensures that banking services will be provided wherever they will want to use them.

    How can firms overcome the security and privacy concerns associated with data sharing?

    Open Banking is a triumph of collaboration among all of the stakeholders – banks, policymakers, consumers, and fintech firms – to create an ecosystem that addresses the security and liability issues associated with data sharing in the banking sector. Beyond Open Banking – a framework under which these issues have been painstakingly addressed – it is only through this type of determined, exhaustive, private/public sector collaboration that these types of concerns can be adequately addressed.

    What are the best strategies to encourage customer engagement?

    Financial management is an emotionally charged topic. While traditional PFM tools offer consumers the convenience of getting a consolidated view of their finances, they don’t provide personal guidance and recommendations on next steps. This lack of guidance is a key contributor to lack of engagement. Next generation tools that use data analytics and domain expertise to provide contextual education and personalised recommendations have a much higher likelihood of engaging consumers and empowering them to improve their financial outlook.

    Why will you be speaking at Finance Edge’s Open Banking Summit, and what do you hope to get out of the event?

    As Open Banking became a reality in the UK earlier this year, all of us with a stake in its success must ensure continued dialogue. Finance Edge’s Open Banking Summit is one of the best opportunities for such critically important stakeholder engagement.

     


    Open Banking Summit
    25 April 2018 London

    Steve Boms will be joining us for the Open Banking Summit. This high-level, interactive forum will bring together senior-level professionals from all corners of the open banking space.
    Contact us to secure your place

    Speaker Interview: Abe Smith

    Posted by

    Abe Smith, Founder & CEO, Dealflo

    What is Dealflo’s role in helping financial services companies with the KYC process?

    Dealflo’s cloud-based solution allows financial services companies to fully digitise the transaction of customer agreements that carry risk, such as finance agreements, loans, mortgages, and life and pensions agreements.

    Dealflo’s technology helps financial services companies move from manual or semi-manual onboarding processes to fully automated processes, where a customer’s identity is verified digitally, and agreements are signed electronically. Agreements which are signed electronically require stronger evidence to confirm a person’s identity than would be required if an agreement was signed face-to-face. We give our clients access to various KYC methods to help them balance the need to provide a great customer experience, with the need to mitigate risk.

    How can firms continue to deliver on their KYC and AML obligations within an increasingly demanding regulatory framework?

    Looking at KYC in the context of a completely digital onboarding process, there’s a delta between the minimum you need to be compliant with regulations and what is advisable as best practice. Dealflo help enable our clients to be on the right side of that delta, whilst offering a frictionless experience to their customers. Financial services companies should be looking for KYC processes that assist with compliance and mitigate risk robustly.

    What are the best ways firms can implement new technology to reduce KYC compliance costs while retaining customer loyalty?

    There are a multiplicity of KYC and AML vendors out there, with fantastic technology that can help financial services companies reduce KYC compliance costs and retain customer loyalty. However, the problem many financial services face, is that they do not have the bandwidth or desire to do multiple integrations with multiple providers of KYC services. My advice to financial services companies would be to look for a flexible solution that offers access to multiple KYC methods, so that they can pick and choose KYC methods which are most appropriate for particular processes or products. This will enable them to optimise not just for cost, but risk and customer experience factors too.

    Dealflo has sourced leading technology to address the wide-ranging needs of financial services providers. This enables us to give clients access to the widest array of global identity and verification checks available, all through a single integration, single contract and single API. Dealflo’s clients can pick and choose the best identity checks for them – such as credit reference agency checks, or innovative new KYC methods such as automated document verification, biometrics, facial recognition, IP geolocation or mobile device identity.

    How close is the financial services industry to achieving standardisation in KYC and identity authentication processes?

    The industry is nowhere near a standardisation, nor should it be. Each financial transaction is different and carries a different amount of risk. When you consider factors such as the value of an agreement, the profile of the customer, the method by which the agreement is signed, the extent to which the product/service is regulated, and many more, you soon realise that there is no appropriate ‘one size fits all’ KYC method.

    The goal shouldn’t be a standardisation – it should be to create a flexible and configurable service that can accommodate all these variations and deliver the most appropriate KYC method for each. A ‘platform as a service’ approach allows financial services companies to achieve this.

    Why will you be speaking at Finance Edge’s KYC & AML Summit, and what are you most looking forward to at the event?

    KYC & AML have historically been considered as isolated compliance requirements to ‘get done’, instead of integral steps in a financial transaction. We want attendees to view KYC and AML as steps which produce evidence which is essential to establishing the veracity of an agreement. If identity evidence is integrated into a tamper-proof signed agreement, then that agreement is much stronger if challenged.

    We are attending the KYC & AML Summit to discuss these processes in the broader context of digital onboarding and to help spark new discussion to think about KYC and AML differently. I’m looking forward to discussing and establishing the role of KYC & AML in customer onboarding and seeing where the industry is headed next.


    KYC & AML Summit
    7 March 2018 London

    Abe Smith will be join us during the KYC & AML Summit. This high-level and interactive forum, will bring together senior-level professionals from all corners of the kyc & aml space.
    Contact us to secure your place

    Webinar: Digitising Customer Onboarding

    Posted by

    REGISTER FOR FREE – CLICK HERE

    27 February 2018
    12:00 pm GMT or after on demand
    60 mins

    Improve the customer experience without compromising on compliance and risk

    Today’s consumers, accustomed to receiving smart and convenient digital services from companies such as Uber, Apple and Amazon, and are beginning to demand personalised, interactive and immediate services from their banks.
    A recent report revealed 42% of UK consumers have adopted FinTech services (EY 2017 FinTech Adoption Survey), so it’s no surprise banks want to adapt to the fast-moving digital marketplace where new and disruptive competitors are already circling. What’s stopping them though, is risk.
    Creating an environment that drives the productivity, speed and compliance essential to sell financial services via digital channels is paramount to survival.
    This webinar will explore how banks can digitise the customer onboarding process without compromising on risk, satisfying customers, regulators and shareholders alike.
    And all this before even looking at the wider business issues. What are the best opportunities for banks and fintechs to collaborate – and to compete? How will customers – who in the UK, at least, seem largely ignorant or sceptical about the promise of open banking – react? Will one or more of tech big five make a decisive move into the sector?

    REGISTER FOR FREE – CLICK HERE

    Unable to attend? Register here to watch it later.
    Brought to you by
                       
    In collaboration with

    Latest News

    Speaker Interview: Kevin Russel

    Speaker Interview: Kevin RusselRead More

    Interview: Nick Rugg

    Interview: Nick RuggRead More

    Speaker Interview: Patrick Hunger

    Speaker Interview: Patrick HungerRead More

    “The Digital Technology in Asset Management conference brought together some of the brightest minds currently thinking about how to use technology to improve the sale and management of investments to businesses and consumers. I particularly enjoyed the Robo Advice session with four of the key pioneers detailing their successes and challenges, Ed Smith clarified how the regulator wants to support the use of technology to provide access for more consumers to get help with their finances, and the workshop run by Market Gravity demonstrated how to take a propositional idea to proof of concept in only 60 minutes, breath-taking. A great event, some key learnings and an opportunity to network with many specialists in their fields.”

    AXA Wealth

    Event Updates

    Receive notifications of upcoming events and access to exclusive content.

    Receive Updates
     

    Finance Edge on Twitter

    How Japan's #OpenAPI adoption could change financial institutions in the region by @ichiroyanagawa of @Celent_Research brinknews.com/asia/how-japan…

    Yesterday from Finance Edge's Twitter via Twitter Web Client