Challenger banks are striving for operational efficiency

Challenger banks are striving for operational efficiency


63% of current financial services players did not exist a decade ago, according to a report from Accenture, Start Shifting: Rapid Revolution Required. These new entrants have already grabbed 14% of the UK’s banking revenue.

Most challenger banks pride themselves on providing a slick customer experience, creating competitive advantage over traditional banks through speedy and convenient customer onboarding and account management services. To offer the same great customer experience physically is more of a challenge. Our recent survey of 500 organisations revealed that peak in-branch trading times are between 12.00 and 14.00. This influx creates operational inefficiency, resulting in large queues, long waiting times and a compromised customer experience.

At the same time, the UK’s implementation of “open banking” back in March 2018 has seen it increasingly easy for new entrants to start offering services. Common services include money management, money transfer and payments, as well as the more traditional current account type offers.

However, behind the scenes the operation can be very different.

Many of the new financial services organisations just don’t have the back office operational capability to support their slick front ends. Digital customer journeys often end up with human intervention, piles of paperwork and an expensive series of manual processes to ensure compliance e.g. AML regulations.

Teams of staff look through online applications, assess poor quality, uploaded images of identification documents, and try to make the right decisions about who is a “good” customer and who is potentially fraudulent. The training and qualifications required by the team are expensive, not to mention time consuming to maintain.

Regulation introduced on 1st January 2018 saw IFRS 9 go live. The resultant changes to stress testing and treatment of impairment can be a significant challenge to new, small, agile financial organisations, who find themselves having ever-increasing capital requirements.

This puts a focus on reducing the cost of back office operations, as well as reducing the potential for fraud.

GBG IDscan can help. Capture your customer’s details quickly, so the seamless customer experience is preserved. Behind the scenes though, the document capture and validation takes place in real time. The technology, developed to maximise “straight through processing,” classifies the document, extracts the customer data, validates the check sum information contained within the document and detects evidence of digital tampering that can’t be seen with the human eye.

For those decisions which can’t be automated, customers have the choice of retaining their own team or utilising our team of expert Forensic Document Examiners. Our examiners integrate into the end-to-end customer journey, so your customer experience impact is minimised for any false positive results that are generated, e.g. due to poor document image quality.

Finally, our built-in Investigation Studio provides a full audit trial of decision making, without the need for back office teams to create cases or manually store away document evidence.

The result is your customer experience can be maintained, or even improved, whilst minimising fraud rates. At the same time, financial services organisations can take advantage of increasing efficiency in their back office operations, redeploying those teams into customer value-adding activities which fuel growth.

Find out more about how GBG IDscan can help you deliver these results here.