By 2025, corporate clients might account for almost 9% of revenue generated by banks.
But are we well equipped to leverage that?
The answer might not be that simple. As most of the commercial customers’ onboarding in banks today continues to be not streamlined enough for a seamless experience for the customers.
Banks typically face numerous challenges in the onboarding process of commercial customers. Interviews with corporate clients have consistently highlighted issues such as ambiguous requirements, underutilization of available data, fragmented documentation demands, and considerable delays in granting account access post-application.
This inefficient process not only frustrates clients but also places a significant burden on bank employees, with a notable portion of onboarding attempts failing to culminate in account opening. These inefficiencies underscore an opportunity for enhancing profitability through process optimization.
Fortunately, for all of us there are proven steps to be successful in onboarding. Our experience with leading major banks has yielded the following five initiatives for substantial onboarding improvements.
This model allows for a unified process across different regions, leading to cost savings through offshoring and more effective compliance management due to centralized governance and easier implementation of process changes.
Coforge helps its client in achieving these above steps in their transformation journey by following its proven process consulting framework known as ProcessGymTM
The engagement begins with a “Day-in-the-Life” workshop validating the high-level As-Is process & producing a prioritized execution plan whereafter our ProcessGym™ takes-on the core process design work. It leverages its methodology to create a portfolio of recommendations & an implementation roadmap for standardizing, streamlining & automating the operations processes.
Our Program Manager and ProcessGym™ SME anchor the “Day-in-the-Life” facilitated workshop for confirming the high-level As-Is state and prioritizing the processes into an execution plan for the engagement.
After agreement of scope of assessment, definition of done and success criteria, ProcessGym™ team will:
This engagement is led by Coforge business consulting - a cross-industry advisory practice enabled with methodology, frameworks, partnerships and tools.
Interestingly, what we do is also supported by a study from Bain & Company that highlights that up to 40% cost reduction and 50% efficiency gain can be achieved by redesigning the client onboarding journey using above steps.
Additionally, alongside bringing cost optimization through process efficiencies, banks also need to focus on automating their KYC processes to reap further optimization benefits.
We have studied the value stream map of Commercial KYC process and identified automation opportunities using our IDP, RPA, Data and AI capabilities as described below.
Specific automation opportunities in commercial KYC for US banks include identity verification, regulatory compliance, and risk mitigation. Automation software can integrate with legacy systems to make them more powerful, transforming outdated manual processes into efficient, digital workflows.
Let’s look at the process map of New Corporate Account Onboarding & Remediation process with automation opportunity at each step.
Case Study: How Coforge is helping clients reimagine Commercial Client Onboarding with Advanced QC & Compliance Technology
As part of the evolving landscape of commercial client onboarding within U.S. banking institutions, a case study of proprietary technology, dubbed 'CopasysTM,' presents a compelling narrative of innovation and efficiency.
The Existing Paradigm:
Traditional Know Your Customer (KYC) procedures for individuals within commercial onboarding have been reliant on manual processes. These include thorough documentation review and data validation, which are not only time-consuming but are also prone to inaccuracies, leading to potential regulatory sanctions and client dissatisfaction.
Limitations Identified:
Challenges Encountered:
Innovative Solution with CopasysTM:
The introduction of 'CopasysTM,' an automated QC platform, has redefined the KYC process. The platform incorporates a preventative QC mechanism, thereby streamlining the validation process.
Strategic Implementation:
Value Proposition:
The image below depicts As-Is and To-Be state of Coforge’s CopasysTM implementation in the KYC flow.
Note:
The platform's efficacy is contingent upon the integration with the bank's existing data systems to ensure a seamless flow of client information.
To know more, connect with us at coforgeBPS@coforge.com
About Coforge
Coforge is a global digital services and solutions provider, that leverages emerging technologies and deep domain expertise to deliver real-world business impact for its clients. A focus on very select industries, a detailed understanding of the underlying processes of those industries, and partnerships with leading platforms provide us with a distinct perspective. Coforge leads with its product engineering approach and leverages Cloud, Data, Integration, and Automation technologies to transform client businesses into intelligent, high-growth enterprises. Coforge’s proprietary platforms power critical business processes across its core verticals. The firm has a presence in 21 countries with 26 delivery centers across nine countries.
For more information on Coforge, please visit www.coforge.com