Corporate banking is experiencing a significant shift as traditional Know Your Customer (KYC) processes become increasingly burdensome for clients. A recent survey by Encompass Corporation reveals that 85% of organizations are contemplating a move to digital-first banks due to the inefficiencies in current KYC procedures.
The study, which surveyed 250 corporate treasurers across the UK and US, highlights that 86% of these organizations have suffered financial losses directly attributable to prolonged or complex onboarding processes. Furthermore, 84% expressed dissatisfaction with their existing KYC experiences, citing repetitive information requests and fragmented systems as primary concerns.
Wayne Johnson, CEO and Co-founder of Encompass Corporation, emphasizes the urgency for banks to adapt: “Legacy systems and fragmented workflows are costing institutions more than operational efficiency—they are costing client trust, revenue, and long-term growth.”
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The Rise of Corporate Digital Identity (CDI)
In response to these challenges, the concept of Corporate Digital Identity (CDI) has emerged as a transformative solution. CDI leverages automation and real-time data integration to streamline the KYC process, reducing the need for manual intervention and repetitive client outreach.
Encompass Corporation’s EC360 platform exemplifies this approach by providing a comprehensive, 360-degree view of corporate clients. This holistic perspective enables banks to verify identities swiftly and accurately, ensuring compliance while enhancing the client experience.
By adopting CDI, banks can achieve significant reductions in onboarding times and operational costs, positioning themselves competitively in an increasingly digital financial landscape.
Security Concerns and the Need for Secure Data Exchange
As cyber threats escalate, data security has become a paramount concern for corporate clients. The Encompass survey indicates that 83% of corporate treasurers are uneasy about how their data is handled during the KYC process. Despite this, only 52% of organizations currently utilize secure online portals for exchanging sensitive information, with the remainder relying on less secure methods such as email.
This gap underscores the necessity for banks to implement secure, efficient channels for data exchange. Platforms like CoorpID offer centralized document management, allowing clients to store and share information securely, thereby mitigating risks associated with data breaches and enhancing overall trust in the banking relationship.
The Imperative for Digital Transformation
The banking sector stands at a crossroads, where the choice is between maintaining traditional, cumbersome processes or embracing digital transformation to meet evolving client expectations. The data is clear: clients demand faster, more secure, and more efficient onboarding experiences.
Institutions that fail to adapt risk not only losing clients to more agile, digital-first competitors but also facing reputational damage and financial losses. Conversely, banks that invest in technologies like CDI position themselves to deliver superior client experiences, ensure compliance, and drive sustainable growth.
Conclusion: Embracing the Future of Corporate Banking
The traditional KYC process is no longer sufficient in meeting the demands of modern corporate clients. With a significant majority expressing dissatisfaction and considering alternatives, banks must prioritize digital transformation initiatives. By adopting solutions like Corporate Digital Identity and secure data exchange platforms, institutions can enhance efficiency, bolster security, and rebuild client trust.
The path forward is clear: embrace innovation to stay competitive in the evolving landscape of corporate banking.
Related Links
- Encompass Corporation: Corporate Digital Identity
- Encompass Corporation Survey Highlights
- Financial IT: Traditional Banking at Risk
- CFO Tech Asia: KYC Frustrations Grow
- Encompass Corporation: Secure Client Outreach
Orther FinCrime central News About Encompass
Source: encompass
