The CRM Roadshow
Trust is the new FSI Currency
29 March 2017
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
KYC / FICA
Know Your Customer
Financial Intelligence Centre
Protection of Personal
Identification and Verification
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.
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.
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
Creating a new relationship.
Creating a digital profile, but not
allowing a customer to transact as
‘face-to-face’ verification has not taken
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.
Allowing a customer to transact fully
only once verification has been
confirmed, this includes
FSP are focusing on enable selfservice
capabilities, but often there is
a tough business case or seen as a