Businesses need a robust roadmap for using digital solutions to enhance user and customer experience and create value. If you are a Financial Institution(FI) where customer growth is critical, business leaders should ask themselves the following questions

• is our onboarding process digital enough?

• are our employees understand our business processes and flow of value to the customer?

• are there places where we ask for repetitive information from customers?

Careful evaluation of the above before jumping into the bandwagon on AI/ML/NLP is necessary. Not all digital transformation use cases need AI/ML/NLP.
For example, the simple integration of sanctions screening using API service is a remarkable transformation for users typing names into websites to check the results manually. Of course, the sanction API itself may employ AI/ML in its algorithms to provide better-hit results depending on the vendor. FIs should do their due diligence while choosing the vendor to ensure the support of their roadmap.

Reduce Onboarding Time

APIs are the bedrock for organizations to consume services and integrate them into their business processes. FIs should focus on strategies (cloud native) that position them to consume these services and accelerate their product development.

Enable Self Service

FIs must focus on improving customers’ digital experience. Technologies are in a place where complex problems are solved using AI | ML| NLP.

Picking the right technology is critical at the design stage.

Ongoing Due Diligence

In the post pandemic world, customers want their products and services through digital channels, while employees require flexibility remote working options). FIs that adjust to this new normal will retain talent and deliver.

Workflow Monitoring

Over time, business grows, rolling out new products and services, but without a unified data model, your data becomes a liability. Ensuring a golden copy of static data and building workflows to manage it is vital for every organization.

The Federal Reserve Banks have narrowed the timing of the FedNow Service launch to mid-year 2023, specifically targeting a production rollout of the service in the May to July timeframe. This further defines the previously communicated 2023 launch window for the anticipated instant payments service and comes as the FedNow Pilot Program prepares to enter technical testing for the service starting in September.

There is an excellent need for state-of-the-art onboarding and compliance software to enable real-time payments and adhere to the bank’s KYC/KYB, AML, fraud, and CFT requirements. Payment gateways need to interoperate, but their legacy architectures cannot dynamically support additional regulatory or risk checks. There is a need for more comprehensive compliance and identity management solutions to reduce fraud, enable instant payments and across borders.

About Longshore Labs

We are financial technology developers that cater to banking, capital markets, insurance, wealth, and asset management practices providing consulting, strategy, and solutions focusing on business, product, and technology operations.

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