Onboarding, KYC, remediation and ongoing compliance and customer due diligence processes all require gathering large amounts of in-depth information about a potential or existing financial services customer. But why do digital-age financial services companies still approach these processes the same way they have for decades? Our experts discuss this conundrum – and the solution. Introducing: the Financial Passport™.
The last handful of years has seen the emergence of powerful digital tools for ever-more-effective security, data exchange and collaboration. But as an industry founded on tradition, reputation and long-standing trust, financial services has been slower than most to adopt these new technologies.
The result? Heavy manual onboarding and compliance workloads, duplicated efforts by the front and back office, slower processes, poor customer experiences and high risk of human error – especially in the face of rapid growth and dynamic regulations. When digital tools are embraced to ease workloads and smooth client interaction, they are often done so on an ad hoc basis, often leading to ballooning IT costs, a lack of cross-departmental alignment and redundancy.
The Financial Passport™ by Harmoney is a secure, continuously updated, centralized customer vault. As such, it paves the way for scalability, automated digital onboarding, compliance and due diligence workflows and rich customer interactions – all via a single platform.
True to its name, the Financial Passport is a clear, validated and up-to-date 360-degree overview of a customer’s identity, affiliations, activities and much more that can be accessed according to a clear governance model.
“The Financial Passport serves as the missing link between every stakeholder at a financial services firm, from back-office personnel to relationship managers,” explains Thomas Van Maele, CEO and co-founder of Harmoney. “This includes a full audit trail containing validation and expiration dates from previous KYC and compliance approval processes.”
Processes and workflows differ enormously across these different roles, with front-office employees focusing on building trust and promoting new products, and compliance professionals concerned with risk management, for example. Thomas: “With the Financial Passport, they all access a ‘single source of truth’ via the same, intuitive interface.”
As a result, IT costs and administrative workloads decrease, efficiency rises and risks can be effectively managed, all while ensuring excellent user experiences.
Each customer’s Financial Passport is automatically enriched using information from public and subscription databases, and continuously updated by bank personnel as well as the end users themselves.
“The Harmoney platform takes the latest compliance regulations into account and can be configured to notify end users that additional KYC information is needed – during onboarding, ongoing compliance or remediation,” Thomas continues. “The user can electronically sign documents, submit scans and update their Financial Passports without any intervention from your team, and the system will cross-check it against the lists and databases of your choice.”
The richer and more complete the data, the more robust KYC and compliance workflows and risk scoring processes are. “Even more, relationship managers can rely on this data to cross- and upsell tailored services,” adds Thomas. “It also facilitates cross-departmental upselling after the merger or acquisition of two or more financial services firms.”
“We envision the Financial Passport concept as something ecosystem-wide and available to all financial services firms and institutions,” Thomas concludes. “Harmoney can support this broad vision via our own platform. However if a financial institution prefers to restrict the Financial Passport concept only to itself, we can implement the full solution within a single institution as well.”
The Harmoney Financial Passport™:
Are you interested in seeing the Financial Passport in action? Do you want to learn more about how to implement the Financial Passport via Harmoney’s APIs? Don’t hesitate to schedule a personalized demo by getting in touch with our team.