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The pressure on financial institutions to become more efficient, comply with new regulations, and compete with novel technologies and entrants is growing. Financial firms are looking at uncertain conditions due to COVID-19, as well as related increases in financial crime and fraud. The IBM Customer Lifecycle Management (IBM CLM) with Fenergo solution is designed to address these issues.
In a timely and relevant webinar for financial institutions, industry experts explore the key criteria that drive successful digital client lifecycle management (CLM) today. In “Powering digital compliant client lifecycle journeys with artificial intelligence,” financial industry professionals from IBM, Investor’s Bank, Fenergo, and Promontory talked about challenges and opportunities that make a holistic CLM and AI application relevant now. Five key issues brought up during the event are shown below. Sign up for the replay on demand here.
Top 5 takeaways
1. Digital data drives reduced false positives and frictionless onboarding
When we do a better job of identifying risk, we get faster onboarding and frictionless customer journeys. This is true at initial onboarding and throughout the customer life cycle.
Machine learning and AI-driven insights are applied in the IBM CLM with Fenergo solution to give us better digital data. This means we can apply a finer understanding about which customers are risky and require enhanced due diligence. More consistent AML and KYC compliance and enhanced customer experiences are complementary. Because we have a better way to reduce false positives, we can fast track the remaining customers.
2. AI, cloud delivery and machine learning can equal huge cost reductions
With digital customer lifecycle management technology, we expect cost reductions and an increased return on investment. This includes operational savings from reduced manual labor time, a key cost driver in compliance programs. It also involves savings in onboarding time costs and regulatory audit costs.
And it can mean reductions in global fines and penalties over non-compliance. Also, better digital data and speed allows people to quickly focus on high risk claims versus reviewing false alerts. They can save time on low risk or medium risk clients.
3. It’s essential to successfully manage sanctions compliance
Financial institutions want to be compliant with new regulations but they don’t want to negatively impact customer experience. It can be difficult to balance customer demands, risk reduction, and compliance. Regulatory compliance is built into the IBM Customer Lifecycle Management with Fenergo solution, based on deep industry expertise, machine learning and AI.
Insights for things like segmentation, networks, channel, and geographic risks can help focus time accurately spent on the right entities. It provides better data to defend risk-based decisions to regulators and stakeholders.
4. Automated and continuous data gathering improves the client experience
Clients ask why they need to be bothered supplying a lot of documentation. IBM CLM with Fenergo can enhance and accelerate the customer due diligence processes and ongoing screening requirements. It uses IBM Watson-powered intelligent automation to pre-populate key information and extract insights.
With continuous collection of broad data in context and perpetual KYC – instead of intermittent data gathering from clients – we can improve straight-through processing rates. And sales can focus on customer care.
5. Financial institutions have to show regulators that they understand how the AI works
Regulators today want to know that financial institutions understand and can explain how the AI works. The AI in the IBM CLM with Fenergo solution is designed to be explainable. This solution has the tools for users to show stakeholders, regulator operators, or customers what factors drive decisions.
The goal of AI is to assist people with decision-making and to augment their performance. Explainable AI means that users can explain and trust AI-driven results and decision-data.
About IBM Customer Lifecycle Management with Fenergo
The IBM Customer Lifecycle Management with Fenergo solution is designed for end-to-end customer lifecycle management across front office, compliance, credit, legal technology and operations while delivering best in class analytic insights. As part of the IBM RegTech risk and compliance solutions, it contains:
- Industry-specific rulesets for 70+ jurisdictions
- Global and local rules and regulations for AML and KYC
- Tax (FATCA, CRS, 871M), OTC Derivative Rules
- MIFID II rules and data privacy regulations such as GDPR
Watch the webinar replay: “Powering digital compliant client lifecycle journeys with artificial intelligence.”