Red Flag Alert Streamlines Onboarding and Customer Management in Finance

Mark Halstead Risk

The finance industry has been transformed over the last 20 years, with both consumer and business banking gradually moving from a face-to-face service to one that is increasingly remote and online.

As a result, the relationship between customer and bank has also transformed; customer loyalty is more easily lost, and the things they value have changed.

For example, a 2017 study conducted by Deloitte shows that 38% of digital banking customers value a good user experience over anything else and consider it the main criteria when seeking an online financial service.

This means that customer touchpoints such as onboarding need to be as pain-free as possible for the customer, while offers need to be tailored to their individual circumstances.

At the same time, new regulations regarding economic crime, financial responsibility and data protection make this an increasingly challenging area.

In this article, we’re going to take a look at some of the ways Red Flag Alert’s data can help your business to make its onboarding and customer management more efficient and effective.

Financial Onboarding: The Challenges

Today’s finance customers expect a fast, seamless and personalised service as standard. However, the onboarding process presents several challenges, including:

Time-Consuming Credit Checks

Credit checks are a vital part of mitigating risk. However, the time cost and potential credit file imprint means this can be a frustrating process for the customer. It also takes up resources for the company involved – especially when dealing with large volumes of customers.

A Myriad Compliance Issues

Nations around the world are cracking down on economic crime and data security, meaning that financial institutions are having to deal with ever-more onerous regulations, such as the Fifth Anti-Money Laundering Directive (AML5D) and GDPR. These regulations need to be addressed in the onboarding process.

Changing Customer Circumstances

Just because your customer’s financial health was robust when you onboarded them doesn’t mean that it will stay that way. This means that banks have to regularly monitor their customers manually, which takes up huge amounts of time and resources.

Missed Sales Opportunities

If a customer’s circumstances change, there may be an opportunity to sell them additional services. For example, a business that has recently seen its cash reserves increase may be interested

in discussing investment options. However, keeping tabs on these opportunities is hard for account managers.

Finding Suitable New Customers

Potential customers will find it incredibly frustrating if, having gone through the sales process, they find they’re not suitable and fail the checks during the onboarding process.

This is bad for your business too, wasting the efforts of everyone involved in getting them to that stage. Both your brand and your bottom line suffer, which is why you need to target prospects that will pass your onboarding process.

Red Flag Alert: The Ideal Solution for Financial Services

Red Flag Alert provides high-quality, accurate and up-to-date information on all of the UK’s six million companies, making it the ideal tool for financial services providers looking to make their onboarding and customer management processes smooth and efficient. Here’s how:

Instant Due Diligence Checks

Red Flag Alert enables a seamless customer experience by providing instant decisions on financial health and regulatory compliance.

By connecting your CRM system to Red Flag Alert, you can set credit limits and see instantly if a customer’s business meets these criteria.

This also has the added benefit of saving you time and resources. These checks can even be made a part of the prospecting stage, meaning that your sales team will only ever approach pre-approved potential customers.

Be Alerted to Customer Changes

Our monitoring alerts provide you with instant updates when a customer’s circumstances change. Not only does this enable you to take action on any changes to the customer’s credit risk, but it also allows you to spot potential sales opportunities. The alerts can be integrated with your CRM system and sent directly to your sales team’s inboxes, proving them with a steady stream of qualified leads and increasing their success rate.

Find Your Ideal Customer

Red Flag Alert allows your sales team to filter the companies in its database and zero in on a list of customers that are ideally suited to your business. This means that you can focus your efforts on the needs of a particular customer segment – whether it’s based on geography, sector or financial health.

The Best Choice for Financial Services

Red Flag Alert gives you a unique advantage over your competitors by helping you to understand your customers better and enabling fast, definitive decision-making.

For the customer, this means they experience smooth and efficient onboarding and are offered new services tailored to their precise needs.

With 180,000 updates gathered from 100 indicators of financial health every day, Red Flag Alert helps financial services to manage risk, gain clients and remain compliant.

To find out how you can start using Red Flag Alert for your onboarding process, get in touch with Richard West at richard.west@redflagalert.com or on 0344 412 6699.

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Mark Halstead Mark Halstead Partner

Mark's experience is big data analytics, financial services and building businesses provides Red Flag Alert with strategic direction.

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