2024-11-06
Encouraged by Lietuvos bankas, banks improved customer experience in the implementation of AML measures
Four commercial banks operating in Lithuania improved customer experience in the implementation of anti-money laundering (AML) measures in 2023. The banks took measures and action to improve customer experience in line with the agreement concluded in early 2023 with Lietuvos bankas which had identified AML requirements as a source of uncertainty for consumers.
“We can appreciate the tangible results we have achieved together with the selected banks. Customer experience has really improved. This is shown not only by the measures implemented by banks, but also by the fact that Lietuvos bankas receives very few complaints and enquiries about KYC information requested by banks, incomprehensible requirements, short time limits set by banks for providing information, and difficult to understand KYC questionnaire questions, or the fact that, in order to update the KYC questionnaire, it is necessary to fill in all the information from scratch,” says Vaidas Cibas, Director of the Financial Market Supervision Department of Lietuvos bankas.
The measures implemented by the banks show that the greatest efforts were put into improving communication tools that help customers understand complex AML requirements, and KYC questionnaires.
The banks either created or updated sections on their websites dedicated to helping understand AML requirements and fill in KYC questionnaires, as well as FAQ sections which clearly explain why banks impose certain requirements and what customers should do.
A great deal of effort was put into customer service as the banks improved messages sent to clients so that they are as simple and easy to understand as possible, and provided training to staff advising clients, including checks on their knowledge and acquired skills.
Areas where customer experience has improved:
- Possibility to update data in the KYC questionnaire on the basis of the previous questionnaire by correcting, supplementing (where necessary) and confirming it without needing to complete it from scratch;
- Providing explanations for filling out the KYC questionnaire or adapting questionnaires to different user groups by eliminating irrelevant questions;
- Customers are informed of the possibility of negotiating a longer time limit for providing the requested information or, at the customer’s justified request, the time limit for providing the information is extended;
- The banks try to obtain as much data as possible from public systems and registers without passing this burden on to customers.
The information provided by the banks shows that they have taken into account Lietuvos bankas’ recommendation that requests by financial institutions for KYC information should be clearer and more individually tailored to consumers so that they can provide it in a simpler and more convenient manner.
In addition, the banks have indicated that they analyse customer feedback, trends in complaints received, investigate the causes and, if necessary, take action to address them and initiate improvements.
Lietuvos bankas issued recommendations to supervised financial market participants, including on improving customer experience in the area of AML, in 2022 and 2023.
Lietuvos bankas recalls that improving customer experience must be an integral part of the activities of all financial institutions. Financial market participants must ensure customer service that meets customer needs, hear customer expectations and problems and seek to find solutions that help to ensure the best possible customer experience.