COVID-19 has not only led to a shift in the risk a customer may represent to a firm, but has also impacted the operational landscape of the financial services industry. Firms have had to quickly adjust to change, with notable scenarios including:
- Changes in both customer and bad actors’ behaviour resulting in traditional monitoring scenarios and risk scoring thresholds becoming outdated.
- Impacts on an individual’s ability to prove their identity leading to increased levels of financial exclusion for prospective customers.
- Challenges for firms in meeting CDD obligations due to issues in collecting documentation and difficulties accessing paper-based files and documents.
Rapid adjustments towards digital transformation have been made by firms in order to address these issues.