If you think financial services compliance is already too costly, brace yourself. It’s going to get worse…much worse. Regulatory compliance, the demands of KYC (Know Your Customer) and EDD (Enhanced Due Diligence) all continue to be top of mind for every financial service executive, and for good reason. Learn more about how to meet these challenges while advancing your digital transformation efforts in this Executive Perspective: http://ap.pn/2ekWDnO

1. COMPLIANCE
The Digital Imperative in Financial Services

2. If you think Financial Services compliance is already too
costly, brace yourself. It’s going to get worse...
Much worse.
COMPLIANCE CHALLENGES
U.S. regulatory agencies have
only addressed 50% of legislative
changes enacted with Dodd-Frank.

3. KYC (Know Your Customer) and EDD (Enhanced Due
Diligence) requirements are getting more complex.
You’ll now need the full attention
of executives and staff to ensure
compliance with these regulations.

4. Technology Holds the Key
Surviving the cost of compliance will require three capabilities:
Fostering greater transparency while exposing new risks
Taking advantage of resources that can simplify processes
Constituting an all-in commitment to training and cultural
adjustment
1.
2.
3.

5. The Customer
The changes in customer relationships for Financial Service
providers present a number of questions.
Should service specializations
continue to fuel organic growth
and focused analysis?
Should scale contribute to
decisions about systems
integration and compatibility?
Should changing location or
legal identity overcome some
regulatory constraints?
Should product-centered
businesses create internal
competition across multiple lines?
?
?
?
?

6. Environment & Systems
Big Data only makes this problem worse.
78% of Financial Services executives
said the lack of integration across
software systems and applications
increases their compliance costs.
– Ben Dipietro of the Wall Street Journal
Only 46% of Financial Service
firms feel they possess complete
enough processes to manage
data quality.
– Cap Gemini

7. Successful automation requires a vision –
a bigger picture of your business environment.
Organizing Regulations
Most software solutions that promise to handle new customers
automatically can’t keep all your data matched up. They often can’t
connect multiple accounts or purchases to one customer, and will send
them messages that don’t make sense, or provide incomplete reporting.
EDD regulations require
two more types of proof.
KYC regulations require
4 types of information to
verify customer identity.

8. Meaningful Data Differentiators
To keep control of all your data and automate compliance,
you’ll need them organized under these three categories.
1.
2.
3.
DERIVED
KYC expects institutions
to score the relationship
and its risk levels, which
requires information
derived from facts or
observations.
FACTS
You will need evidence for:
A determination of the
legitimacy of an individual
The basis of their income
The names of the parties
with whom the bank
exchanges the funds
OBSERVATIONS
Improved compliance
depends on the ability
to identify suspicious
behavior proactively.

9. Systems Make a Difference
McKinsey found financial institutions can improve productivity
and customer service by more than 50% if they:
Integration begins with data
Data control (and compliance) improve with transparency
Automate and digitize their processes
Use software to manage the manual tasks
left over (such as resource planning)
1.
2.
Remember:

10. How to find the right approach
for your organization:
Get buy-in and input from those people the changes impact
Ensure leadership understands and communicates the objectives
– clearly, repeatedly and consistently
Align the objectives to strategic purposes, performance
expectations and measurements
1.
2.
3.

11. The BPM Advantage
A dynamic platform makes it far easier to consolidate all the bits
of information about your customers from all your sources.
BPM platforms are even better by unifying both data and process
into a single, foundational case record.
You’ll be able to see the entire history
of every customer relationship in one place.
BPM

12. Solve the Unpredictable
as Easily as the Routine
Intelligent business process makes it easier to communicate
and share the bigger picture of overall information flow, and
set up rules to solve problems before they occur.
Contact Appian Today
www.appian.com

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