In a world full of crime, criminals have to devise creative ways to clean the money they get from illegal activities. To do so without raising direct suspicion, they target legal methods that handle cash daily.
That is why an effective know your customer solution for financial services must be in place to avoid potential risks. This applies too when a company is doing partnering with another business to conduct business. The process followed in verifying the legitimacy of the other company requires a good know your business software. Read on to find why this is important. Prevent Money Laundering Individuals involved in illegal activities are continually seeking for loopholes to exploit. They can join a financial institution in disguise by using fake details. If an institution does not have a sound know your customer solution for financial services, to conduct thorough customer due diligence, a very big risk looms. When in a partnership, a company should investigate to determine the nature of the other company's individuals. This will ensure that no hidden intentions get kept under the light. A good know your business software enables this to get done with ease. Maintain AML Compliance AML compliance has come to be a mandatory necessity for every business across the globe. For a business to run easily, clients are a big factor. These clients input funds into the businesses, and this is where a sound, know your customer solution for financial services needs put in place. A business should be able to assess the clients they have to avoid AML non-compliance risks. Verifying partner businesses comes in handy when enforcing this rule. This ensures that the chance for a business to engage in potential money laundering or terrorism funding gets reduced to zero. However, failure to adhere to the compliance regulations attracts hefty fines, thus needing to have a sound know your business software in place. Minimize Unnecessary Costs The advancements in technology are making it easy for finance departments to cut unnecessary expenditures. Procurement activities in the past got done manually, thus creating cost-consuming situations. This has seen a reduction with vendor onboarding solutions in place in companies. With a good know your business software, a business can partner with another and acquire goods efficiently. Conclusion An excellent know your customer solution for financial services carries a lot of importance to a business. With fraudulent cases on the rise across the globe, it's crucial to have a sound know your business software in place. Not only does it streamline operations, but it also keeps potential non-compliance risks away.
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Client onboarding is the process of accepting new customers into the business, answering their questions and complaints, and checking that they are aware of the resources given to them. Don't continue to believe that the new customer support framework can function as an automated client onboarding software. You may lose long-term clients who may show their disappointments by canceling their accounts.
Client onboarding is one of the most critical roles for any organization because it has a significant impact on the client's interactions with the product and impacts earnings. These roles are fully automated in GLOBAL RADAR's client onboarding solutions for financial services. Why Companies Need Client Onboarding The continuation of service from your customer is one of the most evident advantages of exemplary client onboarding software. When you lose a customer, all of the effort you invested in publicity, cultivating the partnership, writing plans, and meeting with them has been for naught. Most financial experts believe that 20% of a corporation's existing clients will account for 80% of potential earnings. However, many companies devote too little marketing money to keeping their existing clients. With repeat customers, you have a big chance for potential sales, so it's your responsibility to keep your new clients satisfied. Another advantage of keeping your new customers is the possibility of references. Customers who are satisfied with the support you offer are most likely to recommend you to others. Word-of-mouth marketing can be beneficial or detrimental to the business. Using client onboarding solutions for financial services, you will be able to position yourself for good word-of-mouth promotion. You don't have to do a manual onboarding of your new customers when all these functions can be automated. Generally, perfecting the consumer onboarding process will require considerable experimentation. Most companies find it challenging to get this right on the first try. Of course, most organizations keep improving the customer onboarding process by determining what works what doesn't. They also create a good attitude and continue trying new ideas before finding one that fits their business models. However, optimizing this phase for your consumers so that they understand you're putting their interests first can take more time than necessary. Finding an appropriate workflow to build each of the steps mentioned above is an integral part of creating a good customer onboarding process. GLOBAL RADAR's client onboarding solutions for financial services will assist you here. The software enables you to create workflows that are tailored to each stage of the customer onboarding process. Customer reviews can be used to customize workflow, and analytics can map and strengthen any blind points. In today’s business and regulatory climate, a business should not only be concerned with making profits — it should also attempt to know who it has business dealings with (banks especially).
What is Enhanced Due Diligence? Enhanced due diligence (EDD) is a KYC process that provides a greater level of scrutiny of potential business partnerships and highlights risk that cannot be detected by customer due diligence. EDD goes beyond CDD and looks to establish a higher level of identity assurance by obtaining the customer’s identity and address, and evaluating the risk category of the customer. Enhanced due diligence is specifically designed for dealing with high-risk or high-net worth customers and large transactions; banks are a good example. Because these customers and transactions pose greater risks to the financial sector, they are heavily regulated and monitored in order to ensure that everything is on the up and up. There are several characteristics that distinguish EDD from regular KYC policies: 1. Rigorous and Robust: EDD policies must be “rigorous and robust” which requires significantly more evidence and detailed information. 2. Detailed Documentation: The entire EDD process must be documented in detail, and regulators should be able to have immediate access to enhanced due diligence reports through modern software. This demands more scrutiny when it comes to how data is captured and validating the reliability of those information sources. 3. Special Attention for PEPs: Special attention must be paid to politically exposed persons (PEPs) — they’re viewed as being a higher risk because they are in positions that can be potentially abused for money laundering. EDD: Beyond Regulatory Scrutiny So, what’s in it for the bank or financial institution beyond avoiding painful fines and unwanted regulatory scrutiny? 1. Better Serve Your Customers The EDD and identity verification processes yield a bunch of useful information about your customers, including employment status, age and purchasing power which can be repurposed to offer bespoke solutions to better serve their needs. 2. Deter Financial Crime The idea is that knowing your customers — verifying identities, making sure they’re real, confirming they’re not on any prohibited lists and assessing their risk factors — can keep money laundering, terrorism financing and more run-of-the-mill fraud schemes at bay. The ounce of prevention lets you focus more on business growth because more business is carried out within a positive legal climate. 3. Build Trust Sadly, trust is evaporating quickly. As cybercrime headlines continue to break, banks need to focus not only on halting the flow of money laundering and corruption, but also on being seen as scrupulous custodians of their customers’ data and cash. Adopting Know your business and enhanced due diligence processes also telegraphs to your customers, and prospective customers, that your focus is on lawful business. Thanks to emerging identity verification and from Globalradar, banking customers can now identify themselves from anywhere in the world; this way, banks can rely on quality know your business software. But, if banks are to be sure the process of remote verification is failsafe so that funds — and sensitive data — are protected, they need to be a step ahead of every technological development and every hack. As a provider of financial services, paperwork is very important to your business. Whether you are processing credit card applications, loan requests or refinancing inquiries, your team of data employees have to rely on effective document management software for effective dispensation of financial services. You need to know that too much paper documentation can impact the productivity of your business and the overall profits of your business. This is why Globalradar brings Enterprise Content Management (ECM) as an effective software for the document management of financial services.
Globalradar offers top-quality ECM software solutions for financial services to take the next step. As a part of our ECM solutions for financial services, we offer an online registry of database system. This also comes into use for document signage work and member services, such as card signature collection. Instead of a new set of homeowners being required to come into your physical location to sign the finalized paperwork for their mortgage, they can do so over their phone, computer or tablet, which is immensely convenient for both your customers and your team. For less intensive documentation, you can use this document management software for financial service as well. As an example, someone opening their first checking account could complete the entire process from their home versus visiting one of your branch locations. Their completed application would upload to your ECM, removing the time and effort of assisting someone with becoming a member of your bank. Plus, it ensures the fulfilment of every required response on bank documentation. With the documentation management systems at Globalradar, you can: Track and Organize Paperwork and Financial ReportsWhether you’re a bank, mutual fund, mortgage company or another financial entity, you must maintain and manage your backend financials as well as any other pertinent paperwork. Our document management solutions for financial services can help your team organize and streamline access to paperwork, as well as designate user access levels to guard sensitive information. Boost Employee Productivity and Customer Satisfaction By eliminating many of the drawbacks of paper filing systems and paper documentation, you can optimize the time of your staff. Now, they can redirect their time away from organizational efforts and to more productive ones that benefit the company’s overall goals for growth. By removing some or all paper from your operations, you can also save when it comes to your overhead expenses. Our document management software for financial services benefits not only your company but also your clientele. When you offer your clients conveniences, such as online forms for opening a checking account, credit line or loan, they’re sure to notice it and mark it as an advantage of doing business with you versus another entity in the area. That recognition boosts your organization’s competitive edge. Vendor management solution or vendor onboarding management solution helps in gathering documents and data from a company or individual, verify the details and set it as an approved vendor.
It enables the management to efficiently run the business, purchase goods and services, and make payments on time. It mitigates the risks of fraudulent vendors by providing compliance and validations in an automated manner. Risk rating of vendors is based upon a company’s specific risk tolerance. The vendor onboarding process involves industry-specific vetting and validation, and a good vendor management system is efficient enough to meet these industry-specific requirements. What are the functions of a vendor management solution? A vendor management system is responsible for mainly the following three functions. Vendor engagement It is an effective and globally accessible channel that enables easy communications between the company and the associated vendors. This system ends the need for the physical presence of communication between the parties. The solution will help to ensure ongoing risk management and compliance by providing an audit trail and record-keeping of all activities and related data or documentation. Project management It is a very convenient tool and can perform the following task related to project management.
Payment management You can easily make payments to the vendors or contractors based on the material received or work completion. There is no chance of paying for material never received or service that is yet to complete as you have all the associated records with you. What are the features of a good vendor onboarding management solution? A good vendor management solution should have the following qualities. Easy to use The management solution should provide an easy Graphical User Interface (GUI) so that end users can work on it easily without requiring special training. Compatibility and integration Several other systems are running with a vendor onboarding system. So it must be compatible with them and support integration if required. Facilitate payroll and work hours logging The vendor management solution should have the facility to track your contractor’s working hours so that you don’t need to fill it manually at the end of the week or month. Based on the working time, it needs to automatically calculate the payment to end the need for a separate payment system. Compliance and regulations A vendor onboarding management solution must meet the industry-specific compliance and regulation validation facility. Provide training to the existing vendors and staff The software company should provide training to the existing staff and vendors to work easily and efficiently on the system. Project management If you need to assign different tasks to the vendors according to their skills and abilities, the software solution must handle and track all the activities and their workflow. Security and reliability The vendor management system needs to provide a safe and secure environment to the business processes and be reliable. It must not collapse during peak hours. |
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April 2021
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