Compliance is a hard taskmaster, and you've been its slave for too long. The time when your greatest risk in taking on a new customer lay in the customer itself are long gone. Now, non-compliance penalties can threaten your entire enterprise. You're forced to decline potentially profitable business, and that must hurt.
We're using technology to put the clock back. Back to the days when you could judge a new client company on its merits; back to the days when you could move from on-boarding to revenue in days - or even hours - rather than spending months building a case that might come to nothing.
If you'd like the opportunity to reduce risk, sustainably increase profits and enhance customer experience while improving your compliance processes, then read on...
Risk officers are expensive people. Given the level of training required, along with the gravity of a role that could make them personally liable for their decisons, that's hardly surprising. But how much of their time is spent actually making those decisions, and how much is spent searching for background information, consulting sanctions lists, checking statutory documents or all the other time-consuming actions that are needed to assemble a case? And if the prospect turns out to be a non-starter, all that time and effort was wasted.
That needs to change, and it can. Setting up a new customer on-boarding can be done in under two minutes. Then biz.Clarency shifts the workload to your new customer. They'll upload their full information and all the documents you require. Immediately, biz.Clarency validates documents like passports and company registrations. Export licences are collected and checked for authenticity and currency. Sanctions, politically exposed persons, prohibited companies lists and more are checked - in fact, biz.Clarency consults more than 200 authoritative sources, as well as performing exhaustive searches for adverse media. The non-starters are filtered out within minutes, leaving your risk officers with only those cases that are actually worthy of consideration.
They're presented with an interactive, one-screen overview, from which they can drill down to any level to investigate every detail. Items that could be potentially concerning are automatically highlighted, and the officer can set exclusions or request further information without clicking away. It's quick, intuitive and comprehensive, and every component and every decision are stored in your next-gen, private blockchain.
When your risk officers aren't overloaded, when they're not feeling under threat from prosecution, they make better decisions. And when they have the full picture to examine, they can safely accept more opportunities.
If compliance is a headache for you, it's a nightmare for your customers. They're eager to get on with business, but they're depending on you to facilitate the transactions. It's little consolation to them that the delays that are besetting you aren't of your making; they just want to complete the deal they worked so hard to win. Not that they'll tell you they're unhappy, 40% of them just give up and go elsewhere*. That's almost half of your customer acquisition - the result of all those marketing bucks - evaporating into the ether. Those that remain are doing so with a pretty negative view of your organisation, possibly because other banks are just as bad. Are you happy with being no worse than your competitors?
Give your customers a role to play and they'll be much happier, especially if it's going to speed them towards a good outcome.
You invite them into your on-boarding process by entering just a minimum of information; as long as you can uniquely identify their company - ideally with a registration number - and provide one contact's name and e-mail address, biz.Clarency will set about joining the dots for you.
Your customer receives a fully bank-branded e-mail, complete with all your anti-phishing features, inviting them to enter their information. They use their unique link to access the system - which can be a sub-domain of your main bank URL - and arrive at a friendly custom portal that's also branded to your bank's identity.
If your customer responds rapidly - and they usually do - a logically laid-out, fully interactive risk report can be in front of your MLRO the same day. Your customer feels engaged with the process, and can receive a decision in the shortest time possible.
* source: Deloitte
You already know that onboarding, involved and time-consuming as it is, isn't enough. Value thresholds won't do the job - your customers' businesses evolve, their customers change, they move to new marketplaces, or the company's ownership can change. Meanwhile, export licences expire, regulations change and a myriad other factors can come into play. All of them have the potential to trip you up.
That's where biz.Clarency's living diligence comes into play. Every transaction is automatically checked as if this were a new on-boarding; that includes all counterparties, licences and documentation. It even checks sales values against known market prices to ensure that realistic prices are being charged. Thanks to integration with popular accounting systems such as Sage, Xero and Quickbooks for SMEs, or ERP systems for your larger clients, biz.Clarency actually reconciles each transaction with accounts entries and payments. If anything moves outside your set criteria, your risk officers are automatically alerted.
These movements are immutably stored in your interlocked blockchain, allowing you to generate SARs with a couple of mouse-clicks. The regulator receives a superbly detailed information pack, containing a chronological record of every transaction and its associated documentation and payments. And there, immediately evident, is the fact that you responded instantly and appropriately. A potential incident has been prevented without any business interruption or distraction.
Of course, not all business changes are negative. Your most successful customers will evolve, and you can stay abreast of that evolution and support them with positive offers of new terms or products. You'll be more involved in their business, helping it to grow, and raising your own revenues and customer retention.
Onboarding your new customers in a fraction of the time is good news, but there's more to it than that. Yes, they'll appreciate not being left hanging for weeks or even months before transactions can begin; yes, they'll feel more involved with the process, but they'll love the fact that you're pro-actively helping them with their business. You're in a position to flag potentially perilous deals before they lose money. And, because you're in touch with their transactions, you can respond with value-added services as their business evolves.
Say goodbye to suspense accounts, and forget the complications of reconciling them through Profit & Loss. Now payments can flow freely, thanks to detailed screening of every transaction.
It's simply not possible to gain a full picture of a transaction from 140 characters. SWIFT is a superb system, and we wouldn't claim that biz.Clarency replaces its fundamental role in global banking. But its 140 character field can never give you a truly effective view. With biz.Clarency working alongside SWIFT, you have the full story.
The Living Picture
Conventional onboarding gives a snapshot of your customer when you first began to interact. Thereafter, as long as things stay within a few set limits, it's really a case of hoping for the best. Spiralling compliance penalties prove that this isn't enough. The blockchain-enabled ledger behind biz.clarency captures every transaction, every decision, and every piece of supporting documentation in real time. Not only that, but it alerts you if anything strays - including a shift in marketplace, non-commercial pricing or a host of other subtle factors. If an SAR is required, it's ready for submission in a coule pf clicks.
Built For Banks
This is a system that was designed for banks by bankers. A cross-border transaction can include many parties, some of whom will need to perform their own due diligence. This adds still more delays and cost, and seems superfluous when much of it is just a repetition of what's already been assembled. That's why we built secure sharing into the platform right from the start.
The next-gen blockchain ledger uses the latest standard ISO 20022 XML format for maximum compatibility with your systems. It stores each stage of your on-boarding in a separate, multiple-locked block. Each can be accessed in read-only mode via a high-security hash key. One folder of related information could contain many blocks, and therefore multiple keys, but biz.Clarency's flexible project structure allows you to quickly select the items you want to share. Their combined key can then be shared with counterparties, either through the platform itself or via SWIFT messaging with banking correspondents. And by making your bank easier to deal with, you gain yet more competitive advantage.
If you wish, you can make the data you hold available for other suitably authorised biz.Clarency users. You set the cost and availability and, every time your data is accessed, your account is credited. You can also speed up your onboarding by purchasing information held by other users. If you add a company or individual who already exists on the system as a share-authorised entity, you'll see an offer to use the existing data in your onboarding process. The system automatically deals with GDPR permissions for personal data, making the whole process even simpler.
You're fully in control of the decision to share your data or to consume information held by others. It's a facility that's always there for you to enable or disable whenever it suits your plans.
There are huge repercussions to failing to defend adequately against unsafe transactions. In 2018, five major banks shared more than $2 billion in penalties*, and there's no sign of the situation improving - 2019 saw the highest levies ever, with BNP Paribas alone paying $10 billion in fines.
These figures don't imply fault; they simply illustrate that current compliance tools aren't adequate. It's therefore no surprise that many banks have felt forced to withdraw payment services from regions they regardas high risk.
When due diligence on a $250,000 transaction could easily cost $85,000, the risk:reward ratio is untenable. We work to rebalance the equation by providing an unparalleled level of Know-your-Customer diligence at a fraction of that cost.
* Source PWC