Digital client onboarding
Key takeaways:
  • Risk assessment allows you to better understand who you are going into business with.
  • Make decisions based on risk-based analysis while onboarding your clients.
  • Build a custom risk assessment model based on the conditions most important to your company.

Risky business is risky business, so getting all the facts straight turns a gamble into a sure thing. When it comes to onboarding individual or corporate clients, risk assessment is part of the package. It is an integral part of KYC and AML regulation checks, providing further insights into your new clients and their dealings.

All these processes give you all new insights; however, having an internal risk assessment tool lets you tailor the information gathering process to your needs and gain risk assessment insights specific to your business. Trulioo's no-code platform connects the digital onboarding experience with a highly customizable risk assessment tool that is simple and effective.

The importance of risk assessment

You wouldn't go into business with just anyone, and nowadays, you don't have to rely on a hunch to decide who’s a little fishy and who’s a safe bet. By having a risk assessment system, you can better understand who your clients are and dictate the parameters in how you wish to serve them. This all helps to mitigate any potential risks that may harm your business in the future.

But just because a client is high-risk doesn't mean they're tainted goods, and you can't onboard them. It just means they may require a bit of special attention from your end. Having a system to help you actively manage risk assessment when onboarding can help you better comply with KYC, AML, general compliance regulations and improve your services.

Traditionally, customer risk levels are divided into four buckets that will determine the nature of your relationship with them and how you should manage them:

  • Low: A customer whose identity and information are easily verifiable. They pose a low amount of risk to unwanted or illegal activity.
  • Medium: A customer who may pose a higher risk than the average customer. This customer may require further due diligence and monitoring.
  • High: A customer that requires a considerable amount of due diligence and should be monitored closely.
  • Prohibited: A customer profile that strongly indicates suspicious behavior and risky transactions have occurred in the past. These customers should be avoided to prevent your bank or a financial institution from being implicated.

 

It is not a calculated risk if you haven't calculated it." ― Naved Abdali, Author of INVESTING — Hopes, Hypes, & Heartbreaks.

How the risk engine works

Trulioo allows you to start conducting your risk assessments during onboarding before any official AML checks even begin!

You can build and customize risk models that directly connect to your Trulioo digital onboarding process. By inputting rules, values, and thresholds, you'll then receive a client's risk score once they reach the end of the onboarding flow. This includes several risk categories to choose from, including a customer's place of residence, financial background, employment history, and services you may want to consider offering them. Naturally, there's also an 'others' category that can be personalized to any of your outstanding needs.

You can set rule conditions. If these conditions are triggered, your client will receive an extra point on their risk assessment score. For example, if your business considers onboarding clients from Yemen a higher risk than England, you can set the system to identify these data points when onboarding, automatically adding them to their risk score.

You can set up as many customized rule conditions as you want, allowing you to have a comprehensive risk assessment that provides a thorough summary of your clients' risk rating, so you know how to move forward with confidence. The rules can be adapted to assess clients across several branches and countries, catering to specific needs. It allows all data and risk variables to be accessible to all relevant stakeholders, meaning your teams can be more informed, efficient and paves the way for risk-based decisions to be made with greater assurance.