AML, KYC, OMG: How to manage compliance with a smaller team and a better UX
For someone working in compliance, there never seems to be enough hours in a day. How could there be when regulatory compliance requirements continue to grow?
According to the recent Cost of Compliance 2017 Report by Thompson Reuters, there are over 200 regulatory alerts, such as notices and warnings from various regulatory agencies, a day occurring. While not all the alerts are necessarily applicable, it demonstrates the ongoing requirement to monitor developments and stay on top of the ever-changing situation.
In addition, regulated businesses are planning and implementing strategies to comply with a variety of new laws coming soon. With GDPR, MiFID II and PSD2 coming next year, plus the recent AMLD 4, those dealing with EU customers seem especially stressed.
“One clear and present danger is that of regulatory fatigue, which is enhanced by the evolving regulatory expectations around culture and conduct risk,” according to Stacey English and Susannah Hammond, authors of Cost of Compliance 2017 Report.
Compliance is tough enough for large organizations to manage. Fortunately for them, they have the resources to hire teams or create custom technology to help alleviate the issues. However, dedicating staff to perform costly, manual compliance process may not be the best use of resources. Allocating 90 percent of an employee’s time on data collection, entry and organization — when it’s better to use automation — is inefficient and negatively impacts the bottom line.
What about small companies that are up against the wall both in terms of budget and human resources? How can a regulated startup manage AML (Anti-Money Laundering), KYC (Know Your Customer), and KYB (Know Your Business) compliance without breaking the bank – or the team?
UX for Compliance
For all compliance teams, especially smaller ones, the solution is to create proper workflows that take into account the situation and properly funnel the process along. Or, as they say in the tech industry, the user experience (UX).
When someone mentions design or UX, the first thought oftentimes leads to graphics, however UX is actually much deeper than that. It encompasses the whole experience, all the interactions between the user and the software. As compliance is increasingly going digital, an effective UX implies a positive experience for compliance personnel, a way to handle the workload efficiently and seamlessly.
How is information entered? How is the information checked? What happens if an account is flagged? How easy is it to find specific details? How are reports accessible? Who has access and control to various levels of information? How to report on information for audits?
Creating an effective UX is not easy. There are many questions to ask and the answers vary on the individual, the task, the company’s preferences and numerous other scenarios. There’s trade-offs between usability and control; UX designers need to make things simple, but they also need to empower the user with various controls to maximize performance.
Compliance needs systems that are robust enough to catch fakes, frauds and other risks, but yet not get bogged down to slow the whole process down. They need to collect as much information as possible to ensure they have the data they need, but not burden the customer with unnecessary questions.
UX for Customers
Consumers now expect a seamless UX for most digital transactions. People no longer have to reach for their wallet to pay for a ride, they simply press a button on their mobile device to hail a ride, and get off at their final destination without ever exchanging any form of payment. Today’s consumer demands speed, convenience and simplicity and will retreat from experiences — such as face-to-face identity verification — that are time-consuming and inconvenient.
Companies that deliver good experiences create trust in the company, trust that pays off in more customers, more business and more referrals. Consider the success of Google; there were many search engines around the time, with much more complicated interfaces but Google, with the simplest interface won the day.
Or, MySpace (remember them?) vs Facebook. MySpace had a kitchen-sink feel to it, with each user creating their own interface, as opposed to the streamlined experience of Facebook. Facebook is now an internet giant, and MySpace is almost never heard of.
UX for Identity Verification
So, in terms of identity verification, what is the best UX for your needs? Of course, you’ll have to check each one out to determine what’s best for your needs but keep in mind that here at Trulioo we’ve put a special emphasis on building a seamless, quick UX on our GlobalGateway platform:
GlobalGateway verifications return comprehensive match information, providing results on each individual attribute including: first name, last name, national ID, address, date of birth and telephone number from multiple data sources simultaneously.
Not simply a match score. The Verification Results Matrix in the GlobalGateway portal delivers a unique visualization of a verification result; displaying the match results for each individual attribute from each individual data source. This provides you with an enhanced understanding and greater clarity of why a customer was verified or not.
Customize your rules to maximize your matches and minimize your risk
Regulations vary depending on industry, region, and transaction amount, GlobalGateway allows complete customization of the verification rule set providing you with the best verification rules for your risk mitigation process. Refined rules enable you to increase the amount of online matches you can make during onboarding of users, reducing the number of manual verifications required saving resources and time. Apply custom rules per country enabling you to comply with regional and international AML and CTF regulations.
Flexible Integration Options
Trulioo provides three options for integrating GlobalGateway into your eIDV business processes.
GlobalGateway Portal: A web based interface used by customer facing personnel to quickly verify a customer’s identification.
XML Direct: A flexible API that allows you to fully customize the integration of GlobalGateway into your automated business processes or website.
Normalized API: A normalized API, which is country agnostic, provides a consistent and normalized set of data fields for client service integration. The Trulioo Normalized API allows you to customize the integration of GlobalGateway into your automated business processes or website.
Simplified management and reporting
GlobalGateway’s Administration interface enables you to quickly and easily manage your eIDV service.
User Management: Manage users and their access roles.
Reports and Metrics: Monitor service performance and gain valuable insight and understanding of the overall performance of your eIDV service though in-depth metrics and reporting.
Access Historical Transactions: GlobalGateway keeps track of every identity verification transaction that you run. When you need to run an audit or produce detailed reports of your verifications, you can access all of the information quickly and easily via the GlobalGateway portal.
GlobalGateway delivers a faster and more cost-effective solution for identity verification thanks to its RESTful API. Cut out manual and labor intensive identity checks and get real-time verification results for a frictionless customer onboarding experience.
UX as Differentiator
As you can see, here at Trulioo we are very focused on creating a UX that works for compliance teams, both large and small. Integration is quick; generally we can get you going in a matter of days. Onboarding is seamless; we have a dedicated team to get — and keep — you going. We listen to our customers and continue to make improvements to GlobalGateway based on feedback.
UX is a crucial element to your ongoing compliance success. How easy and how powerful your compliance workflows are, and how empowered and stress-free your compliance team is, depends on an effective UX. When you’re considering your next digital, automated compliance tool or platform, think UX first; you’ll be happy you did!