IMPROVING THE KYC ONBOARDING PROCESS USING BUSINESS PROCESS RE-ENGINEERING: A CASE STUDY AT BANK ANGGREK

• Main Author: Fadhila, Aisha
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/83332
• Institution: Institut Teknologi Bandung

The Know-Your-Customer (KYC) onboarding in the customer acquisition process became an issue in an Indonesian branch of a prominent global bank. In 2023, Bank Anggrek received a significant complaint from one of its major clients expressing discontent with the inefficiency of the bank’s KYC onboarding process. This complaint brought the KYC onboarding process under scrutiny from senior management. From 2019 to 2023, the number of clients expressing dissatisfaction with the bank’s KYC onboarding process steadily increases. At the same time period, the bank also experienced a rise in the number of potential new clients dropping their requests during the KYC onboarding process. The objectives of this research are to identify the pain points of Bank Anggrek’s KYC onboarding process and recommend a solution to resolve them using the Business Process Re-engineering (BPR) approach. The data for this research is collected by conducting interviews with 15 respondents consisting of 10 internal respondents (bank employees) and 5 external respondents (corporate clients). The data is processed using thematic analysis to discover the pain points of the process. Fishbone analysis is then conducted to find out the causes of the major pain points. The analysis identified three major pain points in the bank’s KYC onboarding process: document submission difficulties, challenges in requirements, and communication issues. Further investigation revealed that these pain points stemmed from the bank’s inadequate technology to support an efficient and secure process and the lack of transparency in the process. Additionally, the insufficient guidance provided by the bank during the KYC onboarding process contributed to inefficiency. Based on the analysis, the key priorities of the BPR project are improving client guidance, enhancing technology infrastructure, and creating a tracking system for clients to monitor their onboarding progress. Developing a secure platform dedicated to KYC onboarding is selected as the business solution of this research.