Digital Harbor releases 'know your customer' tool

Source: Digital Harbor

Digital Harbor, a leading provider of risk and compliance solutions built on its composite application platform, announced today a solution to help financial institutions manage Know Your Customer (KYC) requirements associated with Fraud and Money Laundering.

The solution spans account origination, customer lifecycle risk scoring using FFIEC guidelines, Enhanced Due Diligence, and customer monitoring and maintenance dashboards. The value of Digital Harbor's solution is that it can link existing information from inside and outside the institution to provide a more comprehensive view of customer risk throughout the customer lifecycle. The solution meets Patriot Act compliance mandates and provides a first line of defense against financial crimes like money laundering and fraud. In addition, the same KYC framework used to understand customer risk can be leveraged across the enterprise, including other risk and compliance functions for AML, fraud, and operational risk.

Leading risk and compliance analysts including those from TowerGroup, Gartner, and Forrester have identified the need for an enterprise-level architecture for compliance that allows financial institutions to manage risk by better linking and using the information they already have. Financial institutions often have different solutions for functions like origination, screening, and enhanced due diligence that are not connected to each other and not connected to the internal and external information sources required to do proper analysis. To address these requirements, Digital Harbor is providing modules for each of the elements of a KYC solution, linked by a common workflow and information model, including:
  • New Acct Origination
  • Related Party ID / CIP
  • Automated FFIEC Risk Scoring
  • Enhanced Due Diligence
  • US Patriot Act 326, 312, 314a
  • Customer Monitoring & Maintenance


In addition to specific modules, the solution allows financial institutions to easily combine the other data services and specialty analytics they already use, including OFAC lists, negative news checks, credit and debit checks, identity verification, and entity resolution services. For example, the solution allows customers to develop contextual questionnaires to capture information in the front office without impacting customer satisfaction by asking too many questions, and it allows automated FFIEC risk scoring of customers and enhanced due diligence processes for the back-office. It also satisfies regulatory demands for actionable information about Customers when SARs are filed, delivers accurate and timely information for 314(a) requests, and helps decrease false positives in SARs by linking transaction monitoring-based SAR filing with customer relationship data.

"The key to understanding customer risk is being able to score, navigate and analyze relationships between pieces of customer information that reside in different systems and are stored in different formats," said Austin Wells, Digital Harbor's vice president of product management. "Profiling risk associated with a customer's occupation, geography, products, and channels is the first step - but it is equally important to understand the relationships they have with other people, organizations, or transactions that may have been flagged as high risk. By focusing on relationships between otherwise disconnected information, Digital Harbor's solution helps financial institutions compose a true single view of the customer so they can better assess risk at each stage of the customer lifecycle."

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