Master data management, risk and limit management, KYC and compliance, dunning and debt collection
Master data management
A major challenge for financial service providers emerges from the management of the master data for their (potential) customers. The quality of the master data that is supplied by customers and potential customers, for example via online portals, generally varies. This typically results in the following challenges in day-to-day business:
Identification of fake requests to avoid subsequent costs
The master data sets for the customers and potential customers are incomplete, for example the correct legal form of the company or the house number are missing
The spelling of the names of companies or private individuals does not always match the spelling from reference data (e.g. information agency data or public register data)
The identification of new customers and determining whether they really exist is not possible without further measures. The identification of business partners is, however, a necessary step before concluding contracts in order to avoid fraud. Furthermore, identification forms the basis for creditworthiness checks because relevant information and possibly trade credit insurance can only be obtained for business partners who can be clearly identified.
The system supports you with automated processes in cleaning up and improving master data as well as in identifying duplicates in your complete data. Using highly efficient methods such as local radius searches good results can be achieved even with poor‑quality data supplied by the business partner. The processes run fully automatically in multiple stages.
Automatic checking for duplicates in your internal data
Use of highly effective search methods to identify similar data sets in internal and external data
Automatic geo-localization of the master data for the performance of local radius searches
Improvement of the master data sets with the addition of external information
Use of specific country-dependent information providers for searches or addition of information
The establishment of effective risk and limit management is essential for financial service providers. To minimize the risk of default by business partners, the creditworthiness of the business partners must be ascertained before concluding contracts and continually monitored in day-to-day business. The following challenges in business operations result from this:
Fast determination of the creditworthiness of business partners
Prompt detection of payment difficulties on the part of the business partner
Efficient integration of all the relevant stakeholders in order to carry out increases in the overall limit quickly
Operative processing of CCI contracts and the resulting considerable workload (e.g. through fulfilment of obligations)
CAM Financial Services supports you in risk and limit management with automatic creditworthiness checks and limit-control processes. For this purpose, CAM Financial Services has numerous standard interfaces to international information agencies and trade credit insurers. CAM
can also manage and operate the CCI – a clear advantage in the daily activities.
How does this work? Find out more from our success factors.
KYC and Compliance
For financial service providers there are specific regulatory standards in the areas of KYC and compliance. In addition to these regulatory necessities, company-internal compliance guidelines must also be observed. This results in the following requirements:
Determination of the identity of the contractual partner before conclusion of contract
Determination of the financial beneficiaries
Comparison of person and company data with external lists (PEP, AML, CFT)
Comparison of person and company data with internal blocklists
Failure to comply with the legal requirements may result in considerable monetary and non-monetary "naming and shaming" sanctions. But the fulfilment of these legal requirements involves a lot of manual checking. You need to compare the person and company data of your contractual partners with diverse PEP and sanctions lists. The performance of these checks and the results must also be documented and retained for auditing purposes. In addition to the initial checks, ongoing KYC monitoring of the contractual partner is necessary.
CAM Financial Services supports you in fulfilling your compliance requirements through a multi-level KYC process. The clear identification of all contractual and business partners is followed by the verification of this information and the determination of financial beneficiaries. After this, the available information is compared with the following lists:
Politically exposed persons (PEPs)
Combating the financing of terrorism (CFT)
All process steps from the identification to the verification and list comparison can be carried out fully automatically using the KYC feature and diverse information agency interfaces, and the information can be continuously monitored and updated. If changes occur (e.g. a person is added to a terrorism list), the system reacts automatically. All the processes are completely documented and historical data is retained in order to provide the obligatory proof for audits.
Dunning procedures and debt collection
Even with the best checking of risks, it might happen that a business partner gets into difficulties with payments. This is all part of the business and must be countered by implementing an effective dunning and debt collection system. The following challenges result from this for you:
Identification and performance of suitable measures for each customer
Assignment of undisputed claims to a debt collection agency
Taking into account country-specific requirements
Evaluation of the dunning and debt collection measures carried out
High manual input and high costs for operative handling, which increase with the number of customers
CAM Financial Services suggests various measures and carries them out automatically according to your stipulations. Your dunning and debt collection procedures are thus tailor-made for your company and your customers. The following functions are available:
Customer-individual or global dunning processes configurable
Support for suggestion-based (AI) or manual dunning processes
Manual, partly or fully automated performance of measures
Handing over of cases to debt-collection agencies via standard interfaces – including receiving status notifications
Setting up of individual documents / letters for correspondence (e.g. dunning letters) is possible
Automated sending of payment reminders via E-mail possible