In the dynamic landscape of digital technology, retail banks globally are redefining their approaches to marketing and customer engagement. Recognizing this, our client, a prominent bank in the Asia Pacific Region, embarked on a mission to harness the digital revolution for increased empowerment and efficiency.
The Challenge
Redundant processes that reduce process efficiency
Manual review of over 2,500 daily transactional alerts from anti-money laundering (AML) and counter terrorist financing systems (CTF) had become a labor-intensive challenge for our client. The escalating number of false positives, frequent downtimes and inadequate workflow assignment and automated routing compounded the complexity. The traceability of customer transaction alert history was limited and unreliable, necessitating a strategic solution.
The Objective
Streamline business activities and automate processes for increased effectiveness
Entering this project with clear objectives, we aimed to achieve regulatory compliance, reduce reputational risk and avoid penalties. A real-time data aggregation platform was envisioned, driven by streamlined and automated processes. The focus was on enhancing automation opportunities and standardizing the Customer Due Diligence (CDD) and compliance process.
The Solution
Leveraging Pega expertise to align actions
Drawing upon HCLTech's extensive experience in AML and CTF business complexities, applications and processes, we crafted a domain-led Compliance and Risk Management (CARM) solution using Pega. Leveraging the Global Case Management (GCM) framework, our verticalized PEGA solution digitally transformed and streamlined compliance management for AML/CTF. It provided flexibility for a 360-degree view of customers and their product holdings, enabling quicker resolution. Digitalization of end-to-end CDD and transaction review processes, automated dashboards for Suspicious Activity Reporting (SAR) and AI-driven AML/CDD business rule automation were key components.
The Impact
New and improved processes for better revenue, growth and customer engagement
HCLTech seamlessly integrated the Pega platform with the bank's existing systems, realizing cost optimization of over $1 million per year. Additionally:
- Customer response time improved with a 40% reduction in resolution time
- Multi-channel integration across multiple countries, periodic assessment of customer risk profiles, end-to-end automated workflow routing and approval of customer responses were achieved
- The solution provided a comprehensive 360-degree view of customers and product holdings, enhancing the identification of high-risk customers
- Staff efficiencies were boosted by 25%, marking a significant leap toward improved revenue, growth and customer engagement
