Strong competition and regulatory constraints are putting more pressure on banks to know their customers better and leverage this knowledge to create improved customer experience and raise profitability. KYC (Know Your Customers) and AML (Anti-Money Laundering) initiatives require the implementation of systematic compliance/due diligence procedures to enhance the acquisition and management of client data. The management of client data emerges as a key enabler of both compliance/due diligence and marketing initiatives.
- Among the challenges in enforcing compliance are:
Documenting the advice rationale - Systematically gathering all required client information
- Efficiently managing and producing contractual documents
- Controlling the process of accepting new client relationships
- Automating the enforcement of constantly changing compliance rules
In most banks, these events involve a strict procedure that requires the collection of key information, the production and signing of contractual documents and the time-consuming circulation of paper files within the bank for approval by the different habilitated people.
The Client Data Management module is divided into three different components:
- Data gathering and management
- Contract and e-form management
- Client/Account opening and update procedures
Data gathering and management >>>
This component aims at systematically and consistently acquiring and managing all confidential and KYC client and prospect data in a single, secure, encrypted repository. The module allows relationship managers and similar profiles to create, store, maintain and protect all client-related data, including scanned identification documents. Data security management is designed specifically to meet the extremely high confidentiality constraints prevailing in Private Banking.
Comprehensive Client Data Model >
The Client Data Management module is delivered with a comprehensive client data model containing close to 250 standard client and prospect attributes. The standard attributes reflect input from several European Private Banks and represent a generally agreed view on the scope of the client-related data required in a private banking environment. The list of attributes covers formal, KYC, AML and Marketing aspects. Although the standard model is comprehensive, the module is designed to allow financial institutions to customize the data managed and add or remove attributes.
The data model encompasses details of the co-contracting parties (beneficiary owners, account holders, power of attorney, etc.) and allows banks to manage a comprehensive Client Profile with respect to KYC and AML requirements. The ability to segment clients is only as effective as the information held. Not only is information such as client name, address and statutory details stored, but also a variety of additional marketing data that can be used for many purposes, from recording personal preferences and hobbies for example, to information on the products and services used by the client.
The Client Data Management module also allows the construction of a relationship hierarchy in which the roles of contracting parties to client relationship and portfolios can be established, in addition to allocating clients to a relationship group. A relationship manager can easily view the account holders, beneficiary owners, power of attorney or signatories for a specific portfolio or client relationship. The model has been designed so that a physical person or corporation represents a single occurrence, whatever the number of Relationship/Accounts in which it is a co-contracting party.
Building on the vast amount of information held on the client, the relationship manager can begin to segment and profile customers using the multi-criteria query facility. In addition to building client views based on standard client data, relationship managers can create more powerful views by combining personal and portfolio data to build complex profiles incorporating a wide range of information. When this feature is combined with the sales and campaign management features, the bank and the relationship manager have a powerful tool at their disposal to proactively and creatively attract new business opportunities.
Management of prospects >
Relationship Managers can create prospect entries and progressively collect details, and profile data and associated co-contracting parties. Contacts with prospects and prospect-related tasks can be created using the Collaborative Engine. When a prospect becomes a client, the prospect data and the history of contacts and tasks are automatically transferred to the client.
Black list checks >
Directly on screen, users are able to check whether an individual or corporation appears on an existing sensitive name database (black list). A powerful name matching algorithm may optionally be implemented to further improve the search accuracy.
Client Risk Indicator/AML Rating >
Based on a series of attributes, the system can compute a client risk indicator. The indicator can be used as decision criteria in the client approval process.
Online storage of identification documents >
Contractual documents and identification documents (passport, ID card, signature, etc.) can be scanned and indexed per client relationship and co-contracting party. Scanned documents can be viewed directly from the Web User Interface.
Data security management >
The module stores highly confidential data about private individuals and corporations. Whether for banking secrecy restrictions or simply greater discretion with regard to clients’ identities, the module allows banks to manage client data access very strictly. User profile management allows a certified security officer of the bank to control access to the client data. Banks can enforce rules that govern not only which user has access to the data, but also which attributes can be viewed, modified or deleted. The module therefore allows banks to restrict access to the most confidential data (names, addresses, phone numbers, etc.) to specific users.
All entities of the data model are systematically audited. An audit evaluation console makes it possible to search for users’ previous log-ons and updates in a particular period.
Dedicated encrypted database >
In addition to user profile management, the module contains a sophisticated data encryption system that can protect confidential client data. Using a secure algorithm, data in the client database is encrypted and can only be decrypted by an authorised relationship manager or security officer. Sensitive data is also encrypted on the physical disk, making it impossible to bypass the application to access data.
Integration with back-office/host systems >
The module offers various integration mechanisms that allow to synchronise a subset of data with the back-office/host system.
Contract and e-form management >>>
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The contract and e-form management tool is used to automate the generation of contractual documents and internal forms. It supports the generation and printing of a full set of documents automatically, the generation of specific documents and the printing of empty documents. It loads data from the client data base and saves changes or additions back to the client data base so that no data is input more than once.
The module features an intuitive rule engine and allows to implement any kind of legal and regulatory rules (QI, US Person, EU Person, …). It also allows the definition of various use cases to cover the opening of various structures (trust, foundation, BVI, joint-account,…) and the subscription to distinct services offered by the bank (discretionary mandate, advisory mandate, options trading,...). The same system can be used to support different sets of documents and rules for different locations. The module is delivered with a document and rule designer tool that enables a business user of the bank to fully migrate all existing contracts and to easily maintain all forms in different languages and all associated rules.
When a Relationship Manager or assistant launches the preparation of contracts and internal forms from the web user interface, the system loads the information collected in the database and implements the various rules defined in order to automatically determine which contracts and internal forms must be generated. It then produces these for the relationship manager to present to the client. The complexity of the various rules is therefore fully hidden to the Relationship Managers.
Not only is the bank certain that all the necessary information has been collected before the client’s account is opened, it can be sure that the correct contracts have been completed and that all the requirements for opening an account have been fulfilled. The module also provides conformity checks for contractual documents and e-forms and notifies relationship managers of nonconformist events.
Client/Account Opening & Update Procedure >>>
Most banks have implemented a strict but costly procedure to approve the opening of new clients/ accounts. Those procedures generally imply the circulation of various printed documents between different actors in the bank, such as head relationship managers, compliance/due diligence, customer information file and the client opening committee.
The module supports the enforcement of compliance rules by automating due diligence procedures that are associated with the client relationship opening process (KYC, Anti-Money Laundering) and the mutation of specific client data. The module makes use of a workflow engine.
Role-based collaborative workflows >
The solution supports the implementation of two procedures:
- Opening of a new Client Relationship: once the initial information has been collected and a user requests to open a new client/account, a rolebased collaborative workflow allows pre-defined habilitated users (head of RMs, compliance/due dilligence, client information file…) to review and authorize the opening of a client relationship on screen.
- Update of Client data: This process aims at implementing 4-eye principle when an authorised user updates certain sensitive client-related data. Each bank on site defines the list of sensitive attributes and the users habilitated to update them.
The workflow engine enables banks to work on a collaborative mode and
to implement systematic control, validation (4-eye principle) and escalation
procedures. Through a workflow, the system assigns work items to other
professional users if control, validation or escalation is needed. All
decisions made through the process are systematically stored for documentation
purpose.
Odyssey delivers two standard role-based collaborative workflows. The
standard workflows and decision rules can be fully customised on site
to reflect the exact procedures that must be implemented.
Organisation modelling >
A role-based collaborative workflow can only be implemented if the organisational structure of the bank is adequately modelled. Odyssey ORGA module is used to define users and groups and their respective organisational roles (with regard to the hierarchical organisation) and commercial roles (with regard to the Clients). Users and groups may have several distinct roles. When trying to determine which user or group is in a charge of an activity, the workflow engine simply browses the organisation modelled stored in the system.