Landesbank Baden-Württemberg (LBBW), Germany’s largest state bank, is implementing a cloud-based client onboarding system aimed at improving its compliance processes, based on Fenergo’s client lifecycle management platform (CLM). LBBW, with total assets of €324 billion, hopes the initiative will enhance its automation capabilities and increase operational efficiency.
As part of the project, LBBW will deploy Fenergo’s solutions outside of Germany, serving around 1,500 institutional and corporate clients across the rest of Europe, the UK, and Asia.
Jonathan Bashforth, Head of Compliance EMEA at LBBW, says, “We expect Fenergo’s solutions to boost efficiency in onboarding and customer data management. With greater automation, we can adapt to regulatory changes more swiftly and provide a more streamlined onboarding experience, ultimately enhancing customer satisfaction.”A recent Fenergo survey, ‘KYC Trends 2023’, found that 22% of German banks allocate more than half of their compliance budgets to KYC processes—the highest proportion globally. Additionally, KYC reviews in Germany take longer than the other countries surveyed, with the process averaging 106 days to complete. The cost to complete a KYC screen increased 17% globally to $2,598, but once again, Germany saw the highest cost at $2,856, the survey found.
In choosing Fenergo, LBBW joins a growing number of German banks modernizing their compliance frameworks. Fenergo’s technology aims to improve efficiency and cut these costs through automation, system consolidation, and cloud adoption.
According to Ruth Ormsby, Managing Director of EMEA at Fenergo, “Collaborating with LBBW marks a key milestone for Fenergo as we expand our presence in Germany. We aim to support local financial institutions in their digital transformation journey by leveraging our extensive experience with some of the world’s largest and most recognized FIs.”Ormsby added, “German banks are increasingly focused on modernizing their compliance solutions, particularly around client onboarding and lifecycle management. Fenergo helps these institutions digitalize and automate processes, enhancing operational efficiency, improving customer experience, and ensuring regulatory compliance to avoid costly penalties.”
Earlier this year, Fenergo launched its AI-Powered Client Lifecycle Management (CLM) at Money2020 in Amsterdam. The new CLM solution leverages GenAI on Amazon Bedrock to enhance operational efficiencies in onboarding, client and counterparty management, and regulatory compliance
Stella Clarke, Chief Strategy Officer at Fenergo, told RegTech Insight: “With regulatory pressure increasing and financial crime getting more complex, automation is essential for staying compliant and competitive. It’s about leveraging technology to more efficiently meet the demands of the evolving regulatory landscape, while optimizing client experiences and staying ahead in the market.” Fenergo’s new AI functionalities include Intelligent Document Processing (IDP) which promises to reduce manual document handling by 72% for corporate client onboarding.
Subscribe to our newsletter
