Master data management

A major challenge for financial service providers emerges from the management of the master data for their (potential) customers. The quality of the master data that is supplied by customers and potential customers, for example via online portals, generally varies. This typically results in the following challenges in day-to-day business:

• Identification of fake requests to avoid subsequent costs
  
• The master data sets for the customers and potential customers are incomplete, for example the correct legal form of the company or the house number are missing
• The spelling of the names of companies or private individuals does not always match the spelling from reference data (e.g. information agency data or public register data)

The identification of new customers and determining whether they really exist is not possible without further measures. The identification of business partners is, however, a necessary step before concluding contracts in order to avoid fraud. Furthermore, identification forms the basis for creditworthiness checks because relevant information and possibly commercial credit insurance can only be obtained for business partners who can be clearly identified.

The solution

The system supports you with automated processes in cleaning up and improving master data as well as in identifying duplicates in your complete data. Using highly efficient methods such as local radius searches good results can be achieved even with poor‑quality data supplied by the business partner. The processes run fully automatically in multiple stages.

• Automatic checking for duplicates in your internal data
• Use of highly effective search methods to identify similar data sets in internal and external data
• Automatic geo-localization of the master data for the performance of local radius searches
• Improvement of the master data sets with the addition of external information
• Use of specific country-dependent information providers for searches or addition of information
• Fraud detection: check whether address really exists

KYC and Compliance

For financial service providers there are specific regulatory standards in the areas of KYC and compliance. In addition to these regulatory necessities, company-internal compliance guidelines must also be observed. This results in the following requirements:

• Determination of the identity of the contractual partner before conclusion of contract
• Determination of the financial beneficiaries
• Comparison of person and company data with external lists (PEP, AML, CFT)
• Comparison of person and company data with internal blocklists

Failure to comply with the legal requirements may result in considerable monetary and non-monetary "naming and shaming" sanctions. But the fulfilment of these legal requirements involves a lot of manual checking. You need to compare the person and company data of your contractual partners with diverse PEP and sanctions lists. The performance of these checks and the results must also be documented and retained for auditing purposes. In addition to the initial checks, ongoing KYC monitoring of the contractual partner is necessary.

The solution

CAM Financial Services supports you in fulfilling your compliance requirements through a multi-level KYC process. The clear identification of all contractual and business partners is followed by the verification of this information and the determination of financial beneficiaries. After this, the available information is compared with the following lists:

• Politically exposed persons (PEPs)
• Anti-money-laundering (AML)
• Combating the financing of terrorism (CFT)

All process steps from the identification to the verification and list comparison can be carried out fully automatically using the KYC feature and diverse information agency interfaces, and the information can be continuously monitored and updated. If changes occur (e.g. a person is added to a terrorism list), the system reacts automatically. All the processes are completely documented and historical data is retained in order to provide the obligatory proof for audits.