PSPs, InsureTechs & Fintechs

Business Case Description

For the Banking and Fintech, Consolidity streamline a fully digital onboarding process to automate and optimise customer verification, account management, compliance and reporting duties. Thanks to its flexibility, the smart back-office may share the customer data through API to any corresponding third party systems such as corresponding banks and competent authorities. Naturally, each of our client portal is entirely tailored to its existing process.

01.  The Challenge

Paper, emails, copy & paste.
  1. The customer onboarding process is slow and inefficient.
  2. Onboarding officers has to paste each customer data field into the database and after that into the corresponding bank digital system.
  3. Medium and small size enterprises have severe challenges with scaling up their activities.
  4. Customer typos and mistakes in the process of handling official documents were causing high unexpected costs.

02.  Previous Approach

What life was like before Consolidity

Without a smart back-office, onboarding officers are spending at least double the time to successfully onboard a customer; irrespective of being an individual or an organisation.

An enthusiastic lead can generally start the onboarding process with a couple of clicks on the client website. After making her decision, the lead was requested to fill on average 15 fields for an individual payment account and 22 for a corporate account. These fields are used by our clients to assess a first, though not preliminary profile screening. If deemed attractive, a designated officer would copy and paste the keyed-in fields into a preliminary form and send it out to the lead. The lead would complete and send it back. 

The onboarding officer officer would forward the preliminary form to the MLRO who performs the AML check; advanced Google search to seek adverse media news; screen the LinkedIn profile, and the customer risk assessment accordingly on an excel sheet. Based on the risk profile, the officer would copy and paste the preliminary data into the complete form and send it out to the lead for completion together with the fee schedule and the list of required documents. The lead completes and sends the form and document(s) attached to an email. The required documentation usually takes longer to be completed than the preliminary form, so customers will send out many more emails. It makes it very confusing for the officer to keep track of the document received and if there is at least one mistake in a document or the complete form, an extra email threads starts, while the officer never knows when it will end.

Once everything is duly completed and approved, the officer generates a document within DocuSign to be electronically signed by the customer and the PSP required competent individuals. Upon each signature, the application becomes binding, and the officer must now register the customer into the banking system. Now the officer must copy and paste the 30+ single fields for and individual account and 50+ for a corporate account. Once it is sorted, the officer sends out an email to the bank, attaching the supporting documents and KYC. An account gets created on the digital bank platform, and any change or request is now handled there.

03.  Solution

Usually, a model is created after conducting an interview

At Consolidity we approach each client case with the same objective: optimisation. We started by eliminating the first introductory stage, which was in our view contingent. When the lead makes her choice on our client website, she promptly jumps into its smart back-office view. There, the preliminary form questions are being asked, and when submitted by the lead, we display a static page featuring an alert message asking her to wait for the request to be reviewed. The lead cannot move forward by any means on her own.

The MLRO gets notified of the request and accesses a summary of the automated AML search displaying the number of successful hits found, and if any, the details of it together with the links of the adverse media news. Thus the MLRO may answer three essential questions: whether the individual(s) is a PEP; whether the individual has ever been sanctioned; was there any adverse media news related to her. When these questions have been answered, our risk management tool automatically generates the customer risk assessment whereby the MLRO must approve and comment for any mitigating factor(s). Accordingly, the MLRO can advise its colleague on the fee schedule, and the officer uploads it to the document library. According to the customer risk and profile, the MLRO or the officer may confirm the lead and unlock the onboarding process or reject it, together with a short message. In case of rejection, the smart back-office notifies the lead with an automated response and the causal.

When approved, the lead receives an email to jump back onto the onboarding process following a simple link. Now, for any repetitive group of questions (personal details, director/s, UBO/s…), the applicant may choose a previously entered group of data to fill the group automatically.

Once the complete application submitted, the customer accesses the document library, where she will see the KYC requests. At any time, she can drag and drop the documentation while the officer may approve or reject it with a simple click. Again, no emails required. Now the officer may also drag and drop the LinkedIn profile of the customer into an invisible document request slot which is visible to the officer only.

Upon approval of every supporting document, the application form is automatically pulled out by DocuSign API and sent to the officer, which then chooses the correct order of signature flow. When everyone signs, the application data flows into the digital bank system through the Consolidity API that may connect to any responsible receiving party.

This process does not need any email; everything runs intuitively through simple clicks and meaningful notifications.

04.  Why Consolidity

Usually, a model is created after conducting an interview
  1. Save a tremendous amount of time.
  2. Eliminate one stage.
  3. Reduce emails with customers by 70%.
  4. Eliminate copy & paste into forms, risk assessment and into the bank system.
  5. Automation for various tasks – AML check, risk assessment, KYC requests, transfer of data to the bank system and account management.
  6. Avoid confusion within long email threads.

05.  Implemented Software

The smart back-office holds the following modules and micro services
  1. Onboarding modules for both personal payment accounts and corporate payment and merchant accounts. Within the payment account application, a customer may also request an additional account.
  2. Admin dashboard for each
  3. Risk assessment tool.
  4. Integration of Lexisnexis to automate AML checks.
  5. Integration of DocuSign to automatically generate the draft within DocuSign and electronically sign the application forms.
  6. Consolidity API to connect to any digital banking system that the corresponding bank uses.