Framework Designing: Consultation for Customer Onboarding and Profiling Scheme
This case study was conducted with a foreign institution, primarily dealing with insurance policies. This institution is driving digital transformation internally and externally, changing the way they communicate internally, and how they will onboard new policy holders. As such, the following dilemma was raised and addressed.
Data Backlog
One of the dilemmas faced by financial institutions and other financial services providers are continuous customer data update. This is due to customer behavior, and some customers may ignore notification or instructions from the institution to update their residency or profile status. This results in data inconsistencies, between the current situation and the data recorded in the database of the institutions, causing a mismatch which leads to further barriers such as difficulties in risk monitoring, difficulties in determining the profiles of each individuals, and further digitalization barriers. To address this, we demonstrated our electronic know your customer (eKYC) solution to record and maintain a clean data for these individual customers. In addition to digital onboarding system, we compliment with a notification system that alerts the administrators for customer profile monitoring for easier monitoring, and once a message is sent from the administrative panel, an automatically generated message will be delivered to the digital account of the customer.
Onboarding of Business Entities
Current challenges may address the onboarding and understanding individual customers, but not the case for business clients. Business clients have a more complex method for verifying, and onboarding, which mainly requires the check and authentication of the company registration record. For this scheme, we performed an electronic know your business (eKYB) system, where our solution will extract the information provided in the uploaded PDF document of the corporate registration record. Depending on the availability of an open-source government database, an automatic pinpointing to these databases may be implemented and embedded within our system, but in the case where such open database does not exist, our system will extract the listed information from the provided corporate registration document, and autofills the information to the necessary onboarding forms provided by the financial institution.
Streamlining Internal Communication
In this specific scheme, a cross-department communication is necessary to determine the eligibility and the rates for each specific onboarded clients. The primary concern revolves around manual communication which results in lengthy and repetitive process. Thus, our proposed solution includes a framework and a communication tool to be used internally to cross-reference and approve the conditions presented at a more automated level.
Regulatory Compliance & Security
During the initation of this discussion, a specific regulatory indicators were not set in place. In response to this matter, our solution was to conduct a centralized database for citizens, where all data related to residents and non-residents will be stored. Upon a successful implementation of centralized database, an easier attempt to automate data fetching process, updating customer profile, and customer monitoring can be achieved in a simpler manner. This reference was taken from countries that have implemented centralized database system such as Japan and Indonesia.