Optimizing Customer Onboarding and Know Your Customer (KYC)
Reduced Turnaround time and cost with an enhanced Customer KYC process
Process
The Client is a leading financial institution which was looking at optimising their customer onboarding process. The Client has sales team spread across the geo who were responsible for acquiring new Current Account and Savings Account (CASA) customers, the application process for account opening was through a paper form with supporting documents. These were then scanned and sent to a central operations team to complete the onboarding process. The process was manual in nature and had a high Turnaround Time (TAT) of about 10 days for completing the onboarding formalities. The inflow of forms was variable and unpredictable depending on new campaigns and offer which resulted staffing challenges to meet demand.
Solution
AI/ML based solution was developed for the bank to automate approximately 90% of the onboarding process. The first step was to digitize account opening form at the source, scanned forms were read using computer vision and Intelligent Data Capture (ICR) technology. The data extracted was then auto completed in the Core Banking System (CBS) with applicable limits and facilities being applied. The TAT was reduced to less than one hour for onboarding customers which included the time to scan the documents. Extra validation was added at the local scanning facilities to identify supporting documents validity, this ensured less to and fro between the operations team and sales representatives.
Challenges Addressed
High Turnaround Time (TAT)
High TAT results in challenges in growth for the financial institution.
Seasonality and variable inflow of new forms
This caused peaks and troughs for staffing requirements and caused low/over utilization of resources.
Issues in Know Your Customer (KYC)
Document verification was done by the operations team which caused to and fro between sales reps and operations.
Weak customer experience
Additional document requests caused customer dissatisfaction and manual intensive process caused dissatisfaction in new customers.
Manually intensive onboarding process
The process was low on automation and required manual intervention in most stages hence growth in business was depended on hiring more resources.
Outcome
- Reduced Turnaround Time (TAT) from 10 days to less than 1 hour for customer onboarding.
- Cost reduction by close to 60% for the process.
- 23% increase in First Time Resolution (FTR) for Customer KYC.