IN A DIGITAL WORLD
An extract from Perspective: The understanding your customer issue Essential insights into the issues facing your industry today
Customer experience in a digital world
John Marsden, Identity and Fraud Consultant at Equifax, explores the balancing act between compliance and customer experience in a digital world. Today, a lot of the interaction between
Ensuring these checks are done as
is a balancing act. On the one hand,
seamlessly as possible is imperative for
you want to give your customers a quick
a good digital experience.
and smooth experience; on the other hand, you need to make sure that you ‘know’ the
An onerous process to comply with
customer you’re taking on and complete the
Anti-Money Laundering (AML) regulation
necessary checks. The key is to know when
can make the customer journey less
there are good reasons for manual checks,
efficient, thereby causing frustration and
such as in the cases of suspected fraud or
increasing the likelihood of a customer
a ‘Sanctioned Entity’.
businesses and their customers, both
It’s critical to ensure your organisation
consumers and businesses, takes place
Boarding a customer in an environment that
has the right processes in place to meet
online. Increasingly savvy customers expect
requires compliance with AML regulation
a safe, instant and efficient service.
can be complex. Keeping abreast of evolving EU directives, Money Laundering
regulations, sanctions regimes and
One of the reasons the UK financial sector is
If a digital customer journey has too
expanded Politically Exposed Persons (PEP)
more exposed to criminality than the same
many perceived barriers for customers
definitions may seem burdensome when
sector in many other countries is its size
to get what they want, it can hinder
balanced with the day-to-day challenges
and complexity. This has led to an increased
the delivery of its products or services,
of running the wider organisation.
focus from the government to address
and it’s likely to lose valued customers.
the issue of anti-money laundering in the
However, many organisations have a
Finding the balance
past decade, with increased and more
responsibility to make sure certain checks
Making the decision to move a potential
stringent regulations being put into practice.
are carried out before a customer can
customer from a digital, automated
be accepted or a purchase finalised.
boarding process on to a manual one
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Customer experience in a digital world
This has put more pressure on organisations
With the introduction of the 4th Money
to implement robust processes in order to
Laundering Directive (MLD4), there is a
comply with the new rules.
requirement for a more robust, effective and efficient screening service against sanction
Let’s look at some of the challenges that
files and the identification of PEPs.
organisations in the UK currently face: Solutions such as Equifax Watchlist Check •C ustomers want instant access to products and services
can help you maintain a smooth online experience and minimise your false positive rates, whilst also letting you assess the AML
• Interlacing various processes and systems
risk associated with an individual or entity.
to fulfil instant acceptance is expensive and complicated
Of course, businesses will still need to (and choose to) deploy an offline process
•F alse positives can cost customer
where there is a need for additional
drop-offs and take a lot of human
verification, but the trick is to minimise this
resource to review
costly, manual intervention, board more customers instantly, in a compliant way and
•R egulatory requirements are high and
satisfy more end customers in the process.
non-compliance costly, both in terms of fines and brand reputation
Idea in brief THE SITUATION Boarding a customer in an environment that requires compliance with AML regulation can be complex. THE CHALLENGE Making the decision to move a potential customer from a digital, automated boarding process onto a manual one is a balancing act. THE TAKE AWAY Solutions such as Equifax Watchlist Check can help you maintain a smooth online experience and minimise your false positive rates, whilst letting you assess the AML risk associated with an individual or entity.
For more information on Equifax Watchlist Check and the work we do to help
•M anaging multiple suppliers and
organisations comply with regulations,
relationships to help achieve compliance
please get in touch with John by emailing
CLICK HERE FOR MORE ARTICLES
07789 996 557.
Electronic verification and customer screening Advancements in electronic verification and customer screening provide a range of tools designed to support compliance in the digital age.
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