GCBG Weighs a KYC Solution from Bloomberg, Examines KPIs and More
The Global Cash and Banking Group’s 2018 H2 meeting last month in New York, sponsored by Bloomberg, which hosted, and Citibank featured lots of talk about one option to ease the universal pain point of know your customer (KYC) compliance.
Members Band Together to Solve an Industry Issue
Jim Aschmeyer at The Coca Cola Company has been pounding the proverbial payment to pull together several large multinational treasury teams, Bloomberg and Citibank to move forward on a solution to KYC and AML headaches. His passion is clear, and it was exciting to hear his story and dream of the possibility of painless KYC processes and adherence to AML regulations. The goal is clear: “If we look at the data as a deliverable, the information is all there. Mapping is the next step” to giving banks what they want and allowing us to say, “I love ya, but don’t call me,” Jim said. For more on Jim's KYC mission, click here.
Cautious Optimism for Bloomberg’s KYC Solution
Bloomberg presented Bloomberg Entity Exchange, its solution to the relentless KYC documentation requests and ALM regulatory requirements facing global treasury groups. The tool was met with a mix of excitement and skepticism about whether it will get to the roots of the issue. It is by far more than a glorified SharePoint or Dropbox site; but if banks still want paper originals, time-consuming paper shuffling will continue, regardless of where the backup is housed. Obstacles include onboarding participating banks, complicated legal agreements and adding signer management functionality. As Jim said, we “don’t have all the answers yet, but we have a starting place.”
Looking Differently at KPIs
Another member company presented her way at looking at KPIs, starting with the company mission and tying in the core values that treasury provides the overall organization. She offered a compelling look at how and why they try to distinguish between KPIs, operational metrics and leading indicators, saying, “I don’t want a report. I want an indicator that tells of me of success or failure versus the operational metric of activity.” Also, the focus should be on analytics, not mere calculations, to highlight performance.
A Bit Big Brother, but Better Security
Citi presented additional security that is now available to CitiDirect users which generates a “user persona” for everyone logging into the system, using IP addresses as a base security layer, how users type (i.e., hunt and peck or two-handed), what you typically access and how typically you use data. Big Brother tracks everything a user does from your end to enhance your account security. Although member pushback was that “the security issues we face are because vendors are getting hacked,” Citi reported as many as 3,000 hack attacks every half-hour on CitiDirect; so, it’s comforting to learn the extent to which the bank is going to make sure your accounts are safe.