Introducing KYC 2.0: The holistic approach

Tuesday, Jun 28th 2022
Hands on a computer, files, data, documents all interconnected and holistic linked

Today I stumbled upon an article about the hardship financial services worldwide are going through. As they prepare for their digital transformation (which rests on multiple technologies), understanding and integrating customer behaviors is more important than ever. It helps financial services to be more proactive and build trust. No surprise there: every bank and every mortgage provider faces the challenge of making the digital transformation with on the one hand an ever more demanding customer (omnichannel service, the best deals) and on the other hand seemingly limiting factors like Customer Due Diligence (CDD) and Privacy legislation.

 

Everybody needs a soul

At Human Inference, we approach this digital transformation in financial services from a holistic point of view. No, we haven’t gone soft on you all of a sudden. We’re still a business. But we do believe we should be looking at financial organizations as if they were a person. Or in data quality terms: you can never run a successful business if your knowledge is corrupted. But beware: even if you do take care of your data in every department of your company, that doesn’t mean you’ve solved the problem. This is where the holistic approach comes in. You can have a to-die-for body, but it will be useless without a soul…You can try to create a successful company, but it won’t come together unless there is sound data management at the heart…You need KYC 2.0!

 

Power to the weakest link

KYC 2.0 is more than just cleansing and deduplicating your data, and working your way through all source systems until you’ve covered every bit of data you could find. KYC 2.0 for financial services involves privacy, enrichment, CDD, and at the heart of all of that: a Single Customer View (SCV). Each of these elements has an independent role to play, yet each element also has the power to enhance the other and thus the organization as a whole.

One weak link may damage the organization as a whole, but having only strong departments with reliable data doesn’t necessarily mean that together they will make the business flourish. What they need is to come together and start powering each other in order for the business to reach its full potential. How? Let’s dive a little deeper into KYC 2.0 next time.