Tag Archives: SmartSearch

High streets banks struggle to retain consumer trust in an increasingly digital world 

More than eight in ten (81%) Brits claim trust is the deciding factor on their purchasing journey1yet more than three quarters (76%) admit they lack trust in their online banking, according to new research. 

 

More and more banks are providing services online, with Santander recently announcing the closure of 111 physical branches2 and NatWest planning an overhaul of their core retail banking business to fight off fintech rivals through the promotion of their digital channels 3.

 

Although this shift towards online banking may appear seamless, a recent study from anti-money laundering specialists, SmartSearch4 found that only a third (34%) of Brits trust their online banking service to be completely safe, which nearly halves to just 18% when it comes to banks handling large sums of money online. 

 

Furthermore, recent news suggests one of the most established high street banks in the UK, NatWest, is facing a high court criminal case over money laundering, in a further blow to the high street staples as they work to build up trust with the public to conduct their business online.

 

The well-known bank has been cited by the Financial Conduct Authority (FCA) over deposits made over a five-year period between 2011-2016, totalling £365 million5, with allegations that NatWest’s systems and controls have failed to monitor this activity diligently enough, which could result in an unlimited fine and even criminal convictions.

 

This has highlighted the potential shortcomings of banks in their due diligence in policing the movement of money and is extremely damaging for not just NatWest’s reputation, but the reputation of the entire banking sector when it comes to earning the trust of customers.

 

As a leading anti-money laundering provider for businesses, SmartSearch has looked closely at the level of trust towards the banking industry as a whole, developing a unique tool using live social media sentiment to help customers see how well trusted their bank is compared to others on the high street. 

 

John Dobson, CEO at SmartSearchcommented on recent events: “It is clear there are challenging times ahead for the banking industry. The pandemic has accelerated the transition from using physical branches to conducting most of our money management online, which is a big step for a lot of people and can be met with consumer resistance. 

 

“As the age of digitisation grows, it is important that we do everything we can to safeguard against cyber threats and instil our customers with trust, but recent events involving NatWest have been damaging, not only for the individual brand but for the sector in general.

 

“Work needs to be done to ensure that consumers trust their money to be managed online safely, and whilst banks are taking steps to ensure their processes are as safe as possible, it may be some time before the nation is completely accepting of the changing landscape.”  

 

To explore the SmartSearch Trust Barometer, which measures the level of trust towards banks using live social media sentiment, visit: https://www.smartsearch.com/resources/help-centre/glossary/electronic-identity-verification 


About SmartSearch
SmartSearch is a leading UK provider of anti-money-laundering software. Its anti-money-laundering verification platform conducts individual and business searches, both for the UK and international markets with automatic worldwide sanction and PEP screening.


It is the only organisation in the UK with the ability to verify individuals and companies in the UK and internationally all in a single platform via a browser or API, with full Sanction, PEP and adverse media screening and then ongoing monitoring.


Headquartered in Ilkley, West Yorkshire, 
SmartSearch’s very latest technology delivers an unrivalled user experience to over 4,000 client firms and 40,000 users, enabling them to comply with the latest AML regulations and fulfil their AML, Customer Due Diligence (CDD), and Know Your Customer (KYC) compliance obligations.


With no requirement for clients to provide identity documents, 
SmartSearch’s automated verification approach is significantly more convenient for both users and their end customers, with individual AML checks taking two seconds from start to finish, while business checks take less than three minutes.

 

More than 80% of accountancy decision-makers now rely on automation in AML, but trust remains low

More than four out of five (82%) decision-makers in accounting now use automation as part of their AML checks, despite half expressing some level of distrust in electronic checks.

The latest findings from leading AML software provider, SmartSearch, show a distinct lack of trust in electronic checks and verification, with 9% of senior business figures in accountancy saying they don’t trust current automated customer verification checks and 41% saying they only “somewhat” trust them.

While adoption of automated checks became common during the UK’s first lockdown, a surprising 23% of UK businesses across the board still have no automated processes in place when it comes to AML.

The findings are particularly prevalent as the nations braces for another lockdown, which will prevent many physical checks from taking place. With the figures in mind, SmartSearch is urging businesses to consider better automation processes to improve efficiencies and accuracy, to help navigate an ever-challenging business landscape.

Commenting on the findings, John Dobson, CEO at SmartSearch, said: “When lockdown hit first time around, businesses suffered when it came to their AML checks. These businesses rely heavily on those working in the accounting and finance industries to help steer them through challenging times, so it is somewhat encouraging to see trust levels in automation in finance are slightly higher than average – 32% said they fully trust automated processes.

“However, we can see at a UK-level that 23% of businesses still have no automation in place when it comes to AML checks. Lockdown or not, introducing automation in your business is going to create major efficiencies and free up time to focus on other business priorities.”

When asked which of the standard customer authentication checks they would trust to be automated, RCA (relatives and close associations) checks were found to be the least trusted, with just 18% saying they would be happy carrying these out electronically.

According to SmartSearch’s data, the most and least trusted customer authentication checks in accounting and finance are:

1. CDD – 55.6%

2. Credit History – 29.6%

3. SIP – 27.8%

4. Sanctions – 24.1%

5. PIPs – 22.2%

6. Identity – 20.4 %

7. RCA – 18.5%

8. None of the above – 16.7%

The accountancy industry appears best prepared for an age of automation in AML, with higher levels of trust than most. Among those working in this sector, almost a third (32%) said they fully trust the automated processes they currently have in place overall, reaching up to 56% for checks such as customer due diligence. However, 19% still admitted to having no automated checks in place in their business.

Advising businesses on what to consider when it comes to electronic verification, John added: “It’s understandable that there’s still some trepidation when it comes to e-verification and checks. You have to be able to trust that the system you’re using is totally accurate and reliable. However, if this year has taught us anything it’s that businesses simply can’t afford to ignore automation.

“There has been so much innovation in the AML market and we recently launched our market-leading TripleCheck service, so I would urge those responsible for AML checks to research the options available to them. Getting your automation right could be a major help, as we all try and navigate 2020’s challenging business landscape.”

SmartSearch launched its TripleCheck system earlier this year, providing businesses with the most robust AML solution available. The system is a pioneering new electronic KYC (Know Your Customer) and AML solution that combines innovative technology, including facial recognition and digital fraud checks, to create the most powerful AML platform on the market.

For more information about SmartSearch or its TripleCheck service, visit: https://www.smartsearch.com/

Five things to consider during your mortgage application to avoid money laundering suspicion

Mortgage application fraud occurs when an individual provides false or altered documents in support of a mortgage application. Research¹ revealed that fraudulent applications on mortgages were up by 5% in 2019, as 13% of British adults believe it is ‘reasonable’ to exaggerate income on a mortgage application.

With this in mind, experts from anti-money laundering service, SmartSearch, reveal some of the biggest considerations for Brits when it comes to mortgage applications.

Gifted deposits

If you’re lucky enough to receive help from your family or friends in the form of a gifted deposit towards your home purchase, there are a few considerations you should make. Lenders and solicitors will always question the source of your deposit, so it’s important to explain to your mortgage advisor from the outset exactly where the money has come from.

This is especially true in the case of gifted deposits, as large sums of money being transferred into an account are flagged as unusual activity, and may warrant anti-money laundering investigations or harm your mortgage application.

Providing proof that your deposit is a gift and not a loan, is also an important step to consider. This can be a signed letter or document outlining that the deposit is a gift, which is typically enough to satisfy lenders. The signed document should clearly state that the deposit is not a loan and doesn’t need to be repaid. In addition, it should also state that the gift doesn’t grant your friend or family member any rights to the property. Your mortgage advisor can provide you with a document template if you’re unsure.

Deposits from inheritance and personal savings

The most common source of deposit for a home is from personal savings or inheritance. Both of these funding sources should be accepted by mortgage lenders without issue. However, additional checks may need to be completed to clarify the source of the money, so make sure that you can prove your claim to the inheritance and there is documentation showing exactly where the money has come from, and where it’s been since you claimed it.

Lenders very rarely require additional checks for personal savings, but, if you have had big salary changes that have helped to contribute towards your savings, it can help to have older payslips on hand to verify your previous income.

Deposits from credit cards

Credit card fraud accounts for 39% of identity fraud cases in the UK2, with the main aim of the activity being to purchase goods without paying, or to steal money from someone else’s credit account. The most common types of credit fraud are lost or stolen credit cards being used without the owner’s permission, skimmed credit cards, stealing credit card details and committing fraudulent applications in someone else’s name.

With this in mind it’s no surprise that credit cards are typically not accepted by mortgage lenders, as they are unsecured loans and high risk. Using a credit card as part of your deposit is likely to see your application rejected and set you back in terms of securing your home.

Register on the electoral roll

Lenders must be able to verify your identity for purposes of anti-money laundering. Registering on the electoral roll helps to prove your identity and make sure you are who you say you are, as it enables lenders to check your information and confirm your name, address and residential history.

If you’re not registered on the electoral roll it is just about impossible to secure a mortgage, as banks and building societies need to know that the information about you is up to date. Therefore, it is important to make sure you are registered before applying.

De-link from ex-partners

When taking out loans or bank accounts with another person, typically a partner, you become financially linked to them and their activity can impact your credit score and how lenders see you. This makes it more difficult for those reviewing your application to attribute certain spending patterns to you and can raise suspicion if there are irregularities.

If you believe you may still be linked financially to an ex-partner, contact credit reference agencies and explain the situation to them, they will be able to disassociate you with your ex-partner.

John Dobson, CEO at SmartSearch, says: “Applying for a mortgage can be an exciting and also daunting task, with many first-time buyers unsure of what to expect during the rigorous application process.

“It is important to remember that a mortgage is a significant financial commitment, and making exaggerations or withholding any changes in circumstances may result in you being investigated for money laundering and fraud, making it more difficult to secure a mortgage or other financial products in the future.

“We hope by revealing some of the biggest considerations for mortgage applications, you will be equipped with the knowledge you need to easily secure a mortgage.”

To find out more about fraud and money laundering, please visit: https://www.smartsearch.com/