Beyond compliance: A new narrative for corporate banking with digital know your customer management — Navigating risks, unlocking opportunities

Marcus Heidenhof and Jonas Manske
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Marcus Heidenhof: SCHUFA Holding AG, Germany
Jonas Manske: FOM University of Applied Sciences, Germany

Journal of Digital Banking, 2024, vol. 9, issue 3, 211-221

Abstract: In a rapidly changing economic environment, credit institutions in the corporate customer business must ensure their competitiveness by adapting to dynamic developments and using digital technologies, particularly for customer relationship management. One solution for modern adaptation and efficient customer relationship management is implementing a know-your-customer (KYC) process. Despite numerous studies on digitalisation, technology and sales, critical analysis of corporate customer sales remains vague. This paper aims to identify opportunities and risks through qualitative content analysis of 20 expert interviews. The results show that KYC not only fulfils regulatory requirements but can also be used as a differentiating feature in the competitive environment. Opportunities such as the digitalisation of processes, improved customer relationships and more effective sales opportunities are highlighted. However, the discussion also acknowledges the risks of complex regulatory changes and data quality issues. The discussion emphasises the significance of a comprehensive analysis of the KYC process, particularly in corporate banking. The paper provides managers with practical assistance in designing, forecasting and making targeted adjustments through specific courses of action.

Keywords: corporate banking; digitalisation in banking; know-your-customer process (KYC); opportunities and risks; regulatory requirements; sales approaches (search for similar items in EconPapers)
JEL-codes: E5 G2 (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:aza:jdb000:y:2024:v:9:i:3:p:211-221

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