Automated Customer Due Diligence – How to Help Your Process with a Smart Back-office Solution

automated due diligence cdd

Automated customer due diligence (CDD) can be an immense boost for companies with a large number of clients and also organizations operating in heavily regulated sectors. But since this is a delicate phase of the customer onboarding process, that usually differs from one company to another, a fully reliable and highly customizable solution is inevitable for this process. We will show you how Consolidity’s automated customer due diligence checks all of these boxes and even more.

Since Customer Due Diligence (“CDD”) is the process where relevant information about the customer is collected and evaluated for any potential risk for the organization of money laundering/terrorist financing activities, it is something that needs to be done carefully and with the utmost efficiency.

Human errors, negligence may bear unforeseeable consequences for your business, so you need a well-trained staff or highly qualified and experienced seniors to oversee this process. Which means that you need to pay a lot of wages to maintain a group of employees that are equipped to perform this part of the process properly. But what if there would be a solution for automated Customer Due Diligence? Fortunately, there such are solutions.

And why exactly would automated Customer Due Diligence help your business a huge deal? Because that is a tool that is able to eliminate all possible manual errors and negligence, speeding up the whole process enormously at the same time and it even saves you a lot of money. To apply a tool for the salary of a junior colleague is way better deal than to employ a team of highly trained professionals, right?

But how does Consolidity’s automated Customer Due Diligence look like, what are the main features and how does it solve all your problems seamlessly?

automated customer due diligence

 

The Main Features of Automated Customer Due Diligence

Consolidity’s smart back-office is a revolutionary and complex solution that is able to automate and optimize all your processes that are subjects to standardization. CDD is a such process and Consolidity duly has a tool that does the trick. But it’s also important to mention that Consolidity’s automated CDD module is also an extremely flexible one that perfectly models your existing process and is able to follow up with changes virtually instantly.

The Utmost Flexibility Provided by:

  • Fully customized and adjustable elements
  • Custom timing and ongoing monitoring
  • Automatic inclusion of all data items
  • Auto generation of required documents

The Components of Automated Due Diligence

The metrics and checklists of the customer due diligence process may differ across jurisdictions, even from one organization to another and we don’t want you to get stuck with a method that is unfamiliar or uncomfortable for you. Therefore we set up the entire process according to your way of doing things: we optimize it, we automate it and we recreate your existing process way quicker.

And all this won’t be carved in stone either, as we are able to modify any features on the go if a new regulation comes into effect or the requirements change for some other reason. You only need to request these changes, we carry out the modifications – usually with no development time needed – and the updated version would be available for you to use within seconds after implementing them on our side. All this provides you flexibility – even in an area where flexibility is extremely hard to come by.

The Timing of Automated Due Diligence

Automated Customer Due Diligence, as performed within the system of Consolidity, can be triggered at stages of your choice. For example, it may be first carried out in the middle of the onboarding process and to be repeated at the end of the procedure.

You may also want to carry out scheduled monitoring of your clients regularly during the customer lifecycle. This automated CDD module is also perfectly able to do this for you, as recurring runnings in the background of this service contribute you the automated ongoing monitoring that you want to have for every one of your clients.

And by applying this automated, smart solution, you can solve the required monitoring with no additional work. No action is required from your side until the latest system report had been issued. Once the scheduled auto CDD had been performed, a notification is being triggered within the platform to inform you about the result of the process.

Automatic Inclusion of All Data

Automated Customer Due Diligence is being performed based on the customer’s entries during the onboarding process that Consolidity’s smart back-office solution also optimizes for you.
Irrespective of whether a particular input was made through a text field, a dropdown menu, a number or by a date selector, the system considers all of these items as subjects to Customer Due Diligence and takes all of them into account when performing the audit.

Auto Generation of Required Documents

Document requests are being created automatically through the Document Library of Consolidity’s system and can be signed electronically. Document generation is being performed once all required client data had been entered into the system (through the platform’s smart onboarding form).

data vault

Automated Risk Assessment Fits Seamlessly into the Process

The Risk Assessment module is also the part of Consolidity’s solution. The system automatically performs the RA check and generates a report in seconds based on customer entries during the onboarding. When reviewing the RA report, administrators and officers may adjust scores manually and are able to generate an updated RA report that includes the changes made by them.

An internal comment box provides the opportunity to add mitigating factors, explain and clarify particular scores. The Risk Assessment report can be signed electronically with log and timestamp in order to provide full compliance and security.

Similarly to how we set up CDD within the platform, the features of the automated RA module would be implemented according to your existing measures and risk appetite.

Auto-triggered EDD

Upon the emergence of a higher risk pattern throughout the automated Risk Assessment, Enhanced Due Diligence is automatically being triggered and the system audits the client according to your EDD measures.

automated risk assessment

Video Chat ID – Remote Identification Is the Way to Go

One of the most important benefits of applying optimized and compliant digital solutions for your business is that it opens up the possibility of performing official measures 100% remotely. In order to do that, Consolidity decided to include a video chat identification in their smart back-office system.

The video chat enables the offices to verify the ID of the subject persons following the FATF guideline and implementing procedures. During the process, the HD video displays a 4 digit code to be read out loud by the subject person. The subject persons’ ID shows clearly in HD and the conversation is also being recorded and saved in a non-editable format.

Hello Drag and Drop, Goodbye to Emails!

You can finally say goodbye to long and confusing email threads containing the customer’s essential documents. Using Consolidity’s smart back-office system there is simply no need to request, submit or receive documents via email. Everything is done through the Document Library by dragging and dropping documents to their corresponding slot.

When one-off docs need to be requested, the officers may, through a button, request a document by specifying the title and entering a description to guide the customer. From then on, let statuses and notifications do the rest!

Any document created throughout the process, Terms and Conditions, agreement or else can be electronically signed following a standard procedure (with predefined automated anchor points) or any custom order through DocuSign’s corresponding portal. Signed documents are then to be available from the Document Library.

 

Summary

Consolidity’s smart back-office is a complex system that automates complex processes. Such process is a fully compliant customer onboarding with the inclusion of customer due diligence and risk assessment. Automation and additional digital tools complemented with Consolidity’s process optimization enables a fully compliant customer onboarding to be conducted remotely together with Automated Customer Due Diligence and Automated Risk Assessment procedures. The Automated Customer Due Diligence solution Consolidity offers, by automation and optimization and also by eliminating the possibility of manual errors and negligence, saves you time and money. Take a look at our features page for more information. 

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