Microsoft Dynamics 365 CRM (Customer Relationship Management) enables organisations to manage relationships with customers and can be used to keep track of KYC and SIM registration compliance – all while maintaining customer satisfaction.
Compliance to Know Your Customer (KYC) and Subscriber Identity Module (SIM) registration regulations has become mandatory in most countries to prevent money laundering, the financing of terrorism, and the use of mobile phones in terrorist and fraudulent activities.
“Regulators worldwide require both mobile network operators (MNOs) and financial institutions – banks, especially – to verify the identity and residence of all their customers,” says Dennis Lupambo, Mint Group managing executive. “This is mainly for prevention of criminal activities, especially terrorism, if customers can operate mobile or bank accounts anonymously.”
KYC and SIM registrations requirements
The initiative obliges financial services and telecommunication providers to, as the name suggests, “know their customers”, and typically requires certified copies of ID documents and proof of residential address.
“Navigating through the accepted documents that the law permits can be a challenge for both the corporate and the customer,” says Lupambo. “While ID documents aren’t usually a problem, a significant number of customers don’t have utility bills delivered to their residences. So, it is difficult for them to provide proof of residence.”
Taking certified copies of documents in the field is also often a challenge. “MNOs and banks often have traders, shops, and street vendors as agents to sell SIM cards and open bank accounts. These traders don’t have easy access to photocopying facilities,” adds Lupambo.
The advent of cameras on mobile phones is making this easier, however. “Mint Management Technologies provides mobile apps that enable agents to capture such documents on their phones. These documents are then stored in a library on Microsoft SharePoint from where back-office officers can initiate whatever internal process the organisation follows around KYC,” Lupambo says.
The negative effects and challenges
KYC and SIM regulations serve an important function, but they often have negative effects on banking and telco organisations.
“Clients’ bank accounts that are deemed non-compliant with KYC requirements are often closed, as banks work to ensure compliance. Similarly, for telcos, the SIM cards of customers who are not registered – and are thus non-compliant – are required to be deactivated after a certain grace period as prescribed in the regulation,” says Lupambo. “These efforts can result in unnecessarily lost clients who suffer great inconvenience when their accounts are closed without their consent or permission.”
The legacy IT systems used to manage KYC and SIM registration compliance are also often manual, resulting in misplaced records and even greater inconvenience to customers who might be required to undergo the same registration process several times with the same institution. Both banks and telcos often struggle to provide regulators with easy validated records when inspections are called for.
eCompliance and customer satisfaction
Organisations need to comply, however, and Lupambo states that: “If done conscientiously, this compliance can actually have a measurable impact on the bottom lines of both banks and telcos by delivering improved customer interactions and retention activities.”
Regulatory compliance can be ensured without comprising client services with the same workflow, enterprise content management, and CRM software that is typically used to improve customer experiences and drive business performance.
“The Microsoft Dynamics CRM platform allows organisations to keep track of KYC compliance for every customer and make the information easily available at every customer touch point within the organisation, including the agent, branch, and contact centre,” says Lupambo. “With such convenient management of KYC status, organisations can also run campaigns or remind non-compliant customers to comply when they engage with the company.”
Microsoft Dynamics CRM in action
As an example of how regulatory compliance and business growth initiatives can be aligned, Lupambo discussed a recent anti-money laundering project undertaken by a Mint Group client – a leading South African Bank.
The Bank wanted to ensure compliance with the Financial Intelligence Centre Act (FICA) in terms of client identification and verification, and record keeping. Microsoft Dynamics CRM was identified as the system of choice to provide the “backbone” case management functionality needed to fulfil the bank’s remediation requirements.
“Once the system was fully adopted and enforced, employees were able to identify clients who were not FICA compliant through the system’s filter and search functionality. And managers could enforce the compliance process by utilising the system’s contact, follow-up, and record keeping functionalities,” says Lupambo.
Service scheduling to remind employees to conduct regular client compliance checks was also utilised. These checks, coupled with Dynamics’ record-keeping functionality, ensured that a client’s full case history was available from one system.
“As Dynamics CRM provides invaluable business insight and trends into an organisation’s operational processes, the service reporting and analytics capabilities of the system enabled the bank to manage its service levels,” adds Lupambo. “The bank could gain full visibility into the remediation process, enabling it to improve processes and ensure 100% compliance.”
The bank enjoyed a range of positive outcomes besides regulatory compliance. The painless process increased client satisfaction levels, avoided the risk of future fines for non-compliance, and cemented the bank’s reputation as a strong and secure institution with the public and the client base.
For more information, visit the Mint Group website.
This article was published in partnership with Mint Group.