Large Regional U.S. Bank Enhances Customer Profiling to Combat Financial Crimes
Customer Company Size
Large Corporate
Region
- America
Country
- United States
Product
- Precisely Spectrum Entity Resolution
Tech Stack
- Entity Resolution
Implementation Scale
- Enterprise-wide Deployment
Impact Metrics
- Cost Savings
- Customer Satisfaction
Technology Category
- Application Infrastructure & Middleware - Data Exchange & Integration
- Analytics & Modeling - Predictive Analytics
Applicable Industries
- Finance & Insurance
Applicable Functions
- Business Operation
Use Cases
- Fraud Detection
- Regulatory Compliance Monitoring
Services
- System Integration
About The Customer
The customer is a large regional U.S. bank with a history of over 100 years, serving consumers and businesses across more than a dozen states. Known for its acquisitive approach to growth, the bank has consistently expanded its reach and services. It is recognized for providing top-tier customer service, which is a cornerstone of its operations. The bank's extensive network and diverse customer base require robust systems to manage financial transactions and ensure compliance with regulatory standards. As a financial institution, it faces the ongoing challenge of adhering to anti-money laundering (AML) and Know Your Customer (KYC) regulations, which are critical for maintaining its reputation and operational integrity.
The Challenge
A large regional U.S. bank faced regulatory scrutiny due to insufficient management of Know Your Customer (KYC) requirements and failure to report suspicious activities. The bank's account-centric approach to transaction risk assessment led to an overwhelming number of alerts, most of which were false positives. This approach prevented the bank from accurately gauging the risk of individual customers across multiple accounts, as some customers held accounts under different names due to data-entry errors or intentional obfuscation. As a result, investigators were overwhelmed by the volume of alerts, and real lawbreakers often went undetected.
The Solution
The bank implemented Precisely Spectrum Entity Resolution to consolidate customer data across all accounts associated with an individual. This solution integrates with the bank's existing systems, allowing for a comprehensive view of each customer by pulling information from CRM systems and other databases. The Entity Resolution system compares customer data against common name variants, providing a holistic view that includes relationships across accounts and associations with shell companies. This consolidated data is then fed into the bank's screening and transaction monitoring systems, enabling a more accurate risk profile for each customer. The solution allows the bank to better segment customers by risk, improving the efficiency of its compliance efforts without the need to overhaul existing systems.
Operational Impact
Quantitative Benefit
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