For organizations in BFSI Sector, complying with stringent statutory regulations on KYC/AML, comprehensive check on customer risk profile, ability to identity new customers to sell their products and service the existing customers better than the competitors is the need of the hour.
Many of the banks , non banking financial services companies and insurance companies have distinct business units each catering to a different product. Each of these units have multiple channels of customer acquisition and operate independently without knowing the overall customer exposure. As organizations are moving from product centric approach to customer centric focus, a single view of the customer relationship and product holdings across all the channels of the businesses is becoming critical as well as challenging owing to different ways the customer is represented across different business units.
As the financial business is becoming more and more demanding in terms of transaction speed and complex in terms of risk and underwriting, the stress is on the credit manager or the underwriter to verify the credentials of their customers by checking them across all the risky customer list / negative list / defaulters list to rule out boarding any risky customer. The KYC check is very exhaustive check against all the credentials submitted by the customer.
Is the due diligence required to be carried out by BFSI organizations particularly with regard to the cross border transactions. In this the customer data is verified against international list of criminals, PEP list, terrorist organizations etc.
Most of BFSI organizations use BI reports and Analytics and credit scoring extensively for streamlining business operations. However the efficiency and accuracy of the BI reports and the analytics depend upon the underlying quality of the master customer data particularly the presence of duplicate customer records.
Businesses and operations teams undertake customer profiling and identify cross/up selling opportunities by matching with different lists to increase the business and acquire new customers.