Banks versus fintechs #2: Tension builds with regtech innovation
Banks face a payments dilemma of either collaborating with fintechs or developing systems in-house, and the same issue is now arising in the approach to regulation and the best way to digitize compliance.
On the banks’ side, there have been pushes forward. For example, JPMorgan has developed its Data Once platform to streamline know-your-customer compliance.
Launched in March, the unique selling point of the product is self-explanatory: customers just need to input their data once, and it can be transferred across products and geographies.
Data Once is accessed from a dashboard, displaying which aspects are still needed in the compliance process and alerting users to any queries or rejections. The bank wanted to put as much control as possible into the hands of the end-user.
Kevin Heins, managing director and global head of implementations at JPMorgan, says: “The dashboard creates a visual, trackable experience for our clients. "Clients can now take control of the entire on-boarding process – they receive progress updates throughout and completed requests are removed from the grid. Clients can also process in stages, saving some information and coming back to complete it later.”
For its global clients, the process of compliance is more arduous than it needs to be due to processes being developed in-country, rather than across the bank as a whole.