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Digital Banking Compliance

How Does Compliancely Help Banks With Digital Banking Compliance?

Convenience. Everyone loves it. Customers love it even more.


Compliance is a regulatory obligation for businesses but it’s a tiring and sometimes an exhaustive experience for your customers. The paperwork, the waiting, and the verification steps – although necessary from a compliance perspective, these factors can take away the very thing that brought your customers to your products and services – intent.


This experience underwent a great uplift during the pandemic where businesses, especially banking institutions focused on digitizing their services to make their services more accessible to customers.


Account opening was something that used to be an extensive process of submitting paperwork and waiting for hours and even days for the account to be handed over to the customer.

And now it only takes a few minutes. It was made possible due to the digital ecosystem.


Pandemic & Digitization of Banks: An Overview


Banks have leveraged the digitization wave the most. And it’s not just the regular private banking sector that took advantage of this but the neo banking sector – one of the fastest emerging markets of the 21st century.


The point is that the banking sector in general was able to swiftly move all its operations to the intangible yet tangible world of digital banking. And now, opening an account merely takes a handful of minutes before the account has been allotted to the customer. Both the bank and the customer are happy.
Although it might seem like an easy shift – it really wasn’t.


Digitization came with its challenges.


Banks had to adapt to the changing behavior of their customers, the sudden restrictions on the movement of the banks from in-person interactions to virtuality, and the overall impact of the pandemic on the financial ecosystem.


Banks had to adapt to a lot in a very short time.


Despite the ease that digitization brings, there is still one layer of experience that has scope for improvement – compliance.


KYC verification and AML compliance are still huge barriers to a smoother customer experience. And now that customers expect banking services to be responsive, the cards stack up higher.


You’re looking at completely transforming the way compliance protocols functioned prior to the pandemic with a digital infrastructure that simplifies, accelerates, and delivers effectively. And the best part is that it’s a time-efficient solution.

This is where Compliancely steps in. Right from speeding up the digital identity validation, enabling swift KYC verification, streamlining AML compliance ops to ascertaining due diligence, and helping you adapt to change, Compliance can do it all with ease.


The following will discuss in detail the various ways Compliancely has and continues to enhance the digital account opening experiences for banks and how it improves CX with ease.


Ease Of Digital Identity Verification


Compliancely enables your bank to simplify the Digital ID verification experience with ease. With 17+ federal compliant identity verification checks, your digital identity verification experiences can be scaled and accelerated simultaneously.


What makes this easy is that you already have the identity details and proof of information submitted by the customers. Now, all you need to do is to validate these details to verify the credibility of the claims and assess the risk of your customer profiles.


Compliancely enables you to import your customer data securely and helps you choose from a variety of checks to execute bulk data validation. This way, you can approve/reject customer profiles in batches, reduce the turnaround time, and improve CX.


Digitizing KYC Verification


KYC verification is an important part of the regulatory compliance program. It enables banks to assess risk, prevent onboarding politically exposed persons and other parties that have a history of engaging in non-compliant and illegal monetary transactions.


The KYC verification procedure essentially helps you with identifying the demographic details of the customer with proof of identity along with other documents as required for each case.


Compliancely enables you to verify the identity information quickly and easily with 17+ real-time identity checks as follows.


  1. IRS TIN & Name Match
  2. OFAC Watch List
  3. European Sanctions List
  4. Death Master File
  5. Specially Designated Nationals
  6. Politically Exposed People
  7. IRS Tax-Exempt Org. Search
  8. Foreign Account Tax Compliance Act (FATCA) List
  9. Address Validation
  10. Denied Persons List
  11. SOS Business Entity Search
  12. Consolidated Sanctions
  13. Arms Export Control Act
  14. Foreign Sanctions Evaders List
  15. Excluded Parties List System
  16. List Of Excluded Individuals/Entities
  17. Designated Foreign Terrorist Organizations


All the identity verification inquiries are returned with real-time results in accordance with the authorized source data lists (IRS, SSA, OFAC, and more).


Digital AML Compliance


While it is important to provide a seamless experience to your customer, it’s also crucial to screen each profile for risk not just in the context of financial compliance but also security compliance.


Banks that were previously conned by money launderers and terrorism financiers also incorporated a variety of checks to stay compliant. However, it wasn’t until the AML directives were issued and strictly implemented that the banks were able to identify the account holders, freeze the accounts of the perpetrators, and hold them accountable.


It is worthy to note that identity fraud is on the rise and digital banks are experiencing this heat due to the virtuality of operations. The perpetrators are often cloning the passwords, making use of deep fakes, and other technologies to deceive the banking ecosystem, and victimizing the account holders.


An identity verification infrastructure like Compliancely will help you create a robust real-time identity verification ecosystem that not only validates and verifies the identities during the onboarding process but also ascertains in re-screening and ongoing account monitoring.


Ascertaining Due Diligence


A sudden and suspicious shift in account activity is alarming. This is where most banks freeze the accounts temporarily to stop the transactions from accelerating further.


The identities of the account holder must be re-screened on priority against real-time data lists. This helps the bank to conclude if the profile poses risk.


The transactions must be monitored closely to gain insights, such as the geographical location of transactions, source and destination accounts of the transactions, and the trends in transaction volume.


These priority measures are powered with real-time identity data lists offered by Compliancely, helping you verify the identities quickly, re-screen the profile for any possible leads, and assess the current risk quotient. And if the investigations conclude that the risk quotient of the customer is above the permissible threshold, a Suspicious Activity Report (SAR) must be submitted to the authorities.


Adapting To Change


Compliancely enables you to adapt to change quickly. Be it a sudden influx of customer profiles or suspicious profile verification, TIN matching, or sanction screening, Compliancely enables you to be prepared with evidence-backed, authorized identity records, helping you stay on top of compliance no matter what.


The very ecosystem of banking is never-ending. As long as the banking system is here and as long as customers choose to believe in banks, banking institutions will continue to exist and so will their challenges.


It’s how banks approach compliance and their ability to seek out dynamic compliance infrastructure that makes the difference and creates a seamless path to the future.

Utilize Compliancely to streamline and automate
your verifications

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