The CRM Roadshow



The CRM Roadshow

Trust is the new FSI Currency

29 March 2017

David Woolnough

CEO | Edward Blake Group

Using FSI regulations in Customer

Relationship Management to your advantage


Introduction | Regulation: Friend or Foe?

• Focus on some key regulations & primarily

on the topic of onboarding

• What are the real pain points of regulations &

how to approach them

• Client Centered Design Thinking & a look into

some innovations in this area

• Experience that assumptions can kill a


• Move to risk based regulation


Regulation | List is growing


Know Your Customer

Financial Intelligence Centre



Anti-Money Laundering


Protection of Personal

Information Act


Identification and Verification


Key Considerations

Risk of over compliance

Regulations are not going away, if anything experience is telling us that the regulatory environment will become more onerous, difficult and

expensive to manage.

Technology is a key consideration in keeping costs low – however be sure of what you want to achieve before you embark on expensive

technology programme implementations – cost of rework, project overruns and regulation miss interpretations is a real risk.

There is always a risk of being over compliant and as a result your business competitive edge is lost.

Risk of misinterpretation of regulations

Be careful that business decisions are based on interpretations from people who have not fully read and understood the regulations or legal

teams who focus on the letter of the law not the spirit of the law, FICA was a classic example of implementing to the letter of the law which

become overly cumbersome. Assumptions can ‘kill’ businesses – through becoming uncompetitive or incurring excessive costs.

Where possible look for examples of successful implementation / precedence set. Create proto-types, test solutions, obtain client feedback

and engage with the regulator as much as possible.


Key Considerations…cont

Adopt Client Centered Design thinking – Agile / UX thinking

Utilised Client Centered Design thinking, including Agile / UX principles to develop your regulatory programme, there is no reason why this

quick, iterative (fail fast / learn fast) thinking can’t be used to unpack, develop and provide regulator feedback in achieving success in this


Let your customers be part of the development cycle. Understand your customer journeys, limit the impact of regulation to your customer

experience as much as possible, if you don’t someone else will…

Customers assume that our solutions are secure and compliant. As a result, customers will revert to recourse such as social media if there

is fault in the process.

Even though customers don’t trust banks (grudge purchase in many cases), banks are trusted with their money. This should be taken into

account when developing processes and under that customers will assume that the banks have considered all the pitfalls in their solutions.


Key Considerations…cont

Where is innovation coming from

Fintechs are challenging the norms.

What would you do if you had a blank canvas and no legacy? How would you structure? How would you operate? Who would you partner

with? What technology would you use?

So why aren’t you? Someone will… or probably is already…

Technology is a critical enabler of these innovations, particularly the likes of Omni-Channel, CRM, Security and Analytics solutions.

Examples include: managing customer information to improve customer experiences and reduce customer rework, offering appropriate

products to meet customers needs and ensuring customer solutions are secure.

Change in regulatory approach

The regulator is definitely moving towards a risk based approach which places the onus on the financial sector companies to determine the

appropriateness of the processes and controls.

This is very similar to credit bureaus approached to risk profile assessments of customers. Customers will receive a risk profile and based

on the risk profile they will be requested to follow more stringent checks prior to being able to complete certain financial services functions.


Examples | Demonstrations

Backbase 60 second onboarding:

ebankIT 15 minute onboarding:




On-boarding | Process Summary

Create Digital


Creating a new relationship.

Creating a digital profile, but not

allowing a customer to transact as

‘face-to-face’ verification has not taken


Verification of


Currently requires ‘face-to-face’ verification

which means going into a branch, this will be

challenged in time as alternatives can be

considered, examples include:

• Use of 3 rd party software such as Credit


• Video Verification.

Transacting and


Allowing a customer to transact fully

only once verification has been

confirmed, this includes

documentation verification.

FSP are focusing on enable selfservice

capabilities, but often there is

a tough business case or seen as a

lower priority.




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