In order to comply with MiFID II, investment firms must be able to demonstrate that products are suitable for their customers. The collection of customer information, Know Your Customer (KYC), is part of this. Few companies, however, are aware that automated KYC processes even offer growth opportunities. Which ones are they? Find out below.
Better services thanks to data insights
Fondsnieuws recently published an article announcing research into the implementation of MiFID II KYC requirements. The article also briefly discusses the opportunities that data offers. This starts with standardising processes and making KYC scalable. KYC processes can be digitised, for instance, which offers numerous advantages.
Because information is increasingly available digitally (as data), a more complete picture of the customer’s situation and the options available to them emerges. For example, regarding free assets, pension assets or pension income. This will improve the services of financial companies such as investment firms because they will be able to offer better or more comprehensive services that are more in line with the customer’s needs.
KYC as a growth opportunity
Digitising KYC processes is not only an opportunity to improve services; it also offers the chance to get a better picture of the needs and characteristics of customer types or customer groups. Getting to know customers even better by analysing their characteristics on a group (and anonymised) basis offers competitive advantages.
KYC data does not only enable financial companies to serve customers better. It also gives them the opportunity to discover which target group appeals to which proposition. The data can show, for example, that it is not only young people who are more interested in sustainable products and digital services. Adapting the service and the proposition to this can create growth opportunities.
Opportunities of automation
Finally, let’s consider another advantage of automated KYC processes. By standardising and automating these processes, it becomes possible to organise MiFID II obligations in a more scalable, automated and therefore less costly way. This not only reduces costs, but also allows professionals at financial firms to focus more on advising their clients.
Blanco’s modules offer investment firms the possibility to automate and digitalise KYC processes. This enables financial firms to be compliant in a scalable, cost-effective and customer-focused way. Blanco’s solutions are now used by more than 125 financial institutions in six European countries.