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Why remote corporate onboarding is more than a nice to have
Claus Christensen, CEO & Co-Founder, Know Your Customer
According to research by McKinsey, we have covered a ‘decade in days’ when it comes to adoption of digital since the beginning of the pandemic. At the same time, the latest CMO Survey reveals that 84% of marketers report customers now place more value on digital experiences than before the pandemic. As purchasing and consumer activities have moved online also for previously untouched segments of the population, the type of digital experience that financial services providers are able to offer to their new corporate clients has become an important differentiator in a suddenly much busier digital market. 3. Encouragement from financial regulators Finally, the regulators’ shift from diffidence to encouragement regarding remote corporate onboarding has been one of the most important drivers of the current change. A key milestone was the release of official recommendations by the Financial Action Task Force (FATF) in April 2020, promoting the adoption of digital onboarding solutions during the pandemic. The document recognised that the “Use of digital/contactless payments and digital onboarding reduce the risk of spreading the virus”. Following in the FATF’s steps, some local regulators provided further guidance. For instance, the Hong Kong Monetary Authority issued an official letter in September 2020, clearly stating that financial institutions have the flexibility to onboard corporate customers remotely under AML legislation in Hong Kong, without the need for face-to-face interactions. All of these factors have contributed to a favourable environment for the implementation of digital corporate onboarding in financial services. The industry standard will soon be a seamless digital journey to be performed via clients’ preferred device, including elements of automation and AI-driven authentication to improve efficiency and strengthen overall process compliance. While building digital solutions in-house may seem like the appropriate option in certain cases, partnering with specialised third-party providers enables financial institutions to drastically accelerate the digital transformation of their corporate onboarding process and avoid being left behind during the current sector shift. If you are looking to equip your business against the challenges of today and tomorrow, we’d love to help. At Know Your Customer, we specialise in providing scalable, flexible and dynamic corporate onboarding solutions to financial institutions around the world. To discover how our technology reduces onboarding times for corporate clients from 26 days to just 1 day, visit https://knowyourcustomer.com/ or request a demo here.