UK Bank Subsidiary Achieves Financial Crime Remediation Through Data and Tech-led Approach of Coforge

Challenge.

The Bank was fined £100M+ by the regulator for anti-money laundering failures. Consequently, it had to allocate a £200M budget to achieve compliance and manually re-review over 20M customers using paper-based solutions.

There were 3 primary factors that led to this challenge:

1. Lack of digital capability led to heavy manual case management & customer outreach.
2. Fragmented and immature data eco-system, led to a high volume of manual work that otherwise would not be needed.
3. The outdated periodic review process, with old risk models & decisioning rules, led to a high number of false positives.

Solution.

A data and tech-led solution for Financial Crime remediation was designed and pitched to the bank. The full solution design and business rules were developed, refined with analytics and connected to Tableau for reporting into board metrics.

After thorough testing, the full solution was implemented, successfully closing over 3.8M remediation cases and saving more than £100M in operational spending.

• Data Validation: Leveraging a wealth of internal and external data, in partnership with Experian, we created a data validation engine, to match data and create a single version of the customer.
• Risk Scoring: In conjunction with business and risk decision-makers, we developed new risk acceptance models and thresholds to make KYC decisions based on validated data.
• Case Management: Cases that could not be closed immediately were moved into an operational workflow built on Appian (retail), and Salesforce (CCB), so they could be worked on manually.
• Customer Outreach: Using simple digital tools, we built a set of digital e-forms to capture data and documentation automatically and remove paper-based processing.
• Case tracking & MI: Using data and tableau dashboards, we were able to provide a detailed breakdown of cases across multiple vendors, processes, and treatment strategies, stitching together the complete picture.
• Case Closure & PKYC: Using data, we automatically closed cases proactively and leveraged the data validation capability to move 25% of cases to perpetual KYC.

The Impact.

The Financial Crime Transformation Program resulted in significant positive outcomes for the bank: