Before accepting or approving new customers it’s necessary to implement risk protection for your business. Increasing regulatory requirements are placing growing pressures on businesses to constantly challenge themselves juggling the internal cost of compliance, ensuring a ensure a swift onboarding process and reducing the opportunity cost of falsely rejected business.
But what tactics are available to assist in this juggling?
We know that in our speed driven economy, unless you want sky high abandon rates, it’s no longer acceptable to ask a customer to stop their application mid-flow, to manually forward supporting documentation to open an account. We also know, that in our API driven world, accessing onboarding data sources in a timely manner isn’t an issue. Speed, then, is a given.
But are you confident that the data sources underpinning your onboarding decision making are keeping pace? Are your data sources providing you both the breadth and depth of insight needed to allow you to onboard with real assurance? Successful decision-making relies on having the right intelligence at hand to onboard individuals whose footprint, financial standing, use of devices, geography and social circles are as fluid as ever. If you don’t, your data analysts may be increasingly intervening in the onboarding process or seeking more enriched data from external data sources to onboard prospective customers.
One tactic an operator can adopt to combat these challenges is to take a data-agnostic approach, to significantly broaden the automated available data net, so they can quickly access, amend and use an ever-increasing number of data sources and the thousands of unique data points they bring. Basically, utilise more enriched data.
Working with a software data provider who has access to these multiple sources, through a single API, allows operators to turn this rich data source approach to their advantage. Such an approach brings significant benefits to the operator: removing the time and costs incurred to source, contract and integrate with new multiple providers. Of course, it also reduces the need for manual intervention during onboarding, whilst increasing your flexibility by allowing the addition of new additional data sources speedily, as new markets or products are developed.
So, speed is a given and applying a data enrichment approach provides a route to keep pace, tailor your approach to risk and add flexibility to cover future markets and products.
But what about that infamous cost burden? Well, that may not be quite as you think: it’s actually delivered as a pay as you go service, allowing you to waterfall your workflow so that you only pay for the data used, so it satisfies the costs efficiency test.
If this approach resonates with you, please feel free to reach out.