The Financial services sector has become highly automated in recent years. Today, parties have access to a large amount of data, which they are increasingly using to offer new services and to optimise their business operations. New legislation and regulations and constant updates, such as the GDPR and anti-money laundering and terrorist financing laws, do not make it easy for companies in the sector. After all, they are obliged to keep their processes up-to-date and to carry out checks to prevent not only financial losses but reputational damage too.
Single source of truth
In 2021, almost all parties in the industry are busy streamlining their customer and risk acceptance processes. However, different elements from the great flow of data end up in different databases. All organisations therefore wish to control their internal procedures, in which data from customers or suppliers are processed, from one and the same database. The so-called single source of truth.
Only when a crisis arises, such as the coronavirus pandemic, do different players discover how little they actually know about their customers and suppliers. Are these parties suffering? How big is the impact on the business operations of customers and suppliers? This means that they will pay extra attention to the creditworthiness of their customers to avoid losses due to bankruptcy.
Database management and Company Ownership
A characteristic of companies in the Finance, Banking & Insurance sector is that the various parties want to significantly reduce the number of separate databases in order to arrive at one comprehensive database containing all the different data elements. This helps them to gain more insight into their customers, to find out at a glance in which business units a customer occurs and to manage data more efficiently.
In addition, correct handling of laws and regulations is an important motivation for investing in database management and customer due diligence solutions. Institutions that fail to conduct proper customer due diligence or are careless about it face huge fines and a significant risk of reputational damage.
Graydon supports various companies in this sector with marketing information solutions, the simplification and optimisation of onboarding processes and the implementation of ownership and compliance checks.
All these solutions can be easily incorporated into existing databases by using our APIs.