Institutional client onboarding with real time KYC – 1 hour briefing

Happiest Minds Technologies Limited

This briefing session aims to focus on potential challenges during the institutional client onboarding process and highlight the unique features of the solution to address those challenges..

Happiest Minds offers a comprehensive LCAP based nimble yet scalable and agile customer onboarding and KYC automation solution that elevates the overall client experience during the onboarding process. The KYC sub process within the customer onboarding journey accounts for almost 22% of the time consumed for the entire process. Hence it makes sense to automate the KYC process to make a significant difference to the operational efficiency of the entire process. The solution caters to 2 sub-processes within the institutional customer onboarding process. The solution automates the process of validating the LEI and sanctions screening during the customer onboarding process. The solution uses open API to perform the following actions in real time. i. Validate if the details provided by the customer match with those in the LEI database. In case of any mismatch a customer outreach may be required to remediate the same. ii. Ensure that the customer is not on any sanctions list. The onboarding process cannot proceed if the customer is found on any sanctions and an enhanced due diligence process may need to be followed. To automate the institutional client onboarding process, our approach involves the following steps:

  1. The customer provides basic information like the name of the company being onboarded, organizational structure, date of incorporation, address etc.
  2. The customer LEI (legal entity identifier) is then used by an open API to retrieve details such as the customer’s registered name, address.
  3. In the event of a mismatch between the basic information provided the customer and the data retrieved from the LEI database, there is an option to override the data from the LEI database, along with a note to record the rationale for the override.
  4. In the next step of the process, the open API uses the customer details retrieved from the LEI database to inspect the customer’s status in a list of sanctioned entities. In the event of the customer being discovered in a sanctions list, it gets flagged appropriately for the onboarding institution to conduct an enhanced due diligence procedure for the customer.
  5. The solution also has a provision to enable the customer to upload relevant documents such as the registration certificate, income statement, tax filing etc. If one or more documents are pending from the customer, the solution offers an inbuilt trigger to initiate a customer outreach for such documents.
  6. The customer onboarding solution also lets a user configure customer preferences like statement generation frequency, and alert notification thresholds.
  7. Finally, the solution offers an informative dashboard which shows the application status of all onboarding instances.

Solution Components :

Power Apps : Used for the interface design for the customer onboarding solution, UI will interface with API to exchange data related onboarding

Power Automate : Power automate has been used connect with multiple source systems/API to invoke the open LEI validation and sanctions screening

Data Storage : Provide multiple option to store data in SharePoint, Data Verse and Azure blob etc.