The end of the year is fast approaching, and businesses need to end on a high note and prepare for the upcoming challenges and opportunities in the new year. While most people slow down, this is a vital period for businesses to navigate and set themselves up for future success.
Our prepping guide can provide the necessary focus points to achieve this. Pay close attention to critical areas such as KYC (Know Your Customer), contact updates, credit scores, and client data updates, which are crucial. This all forms part of the customer life cycle in any business; whether you are extending credit or up-selling value-added products, KYC is imperative to manage the various risks attributed to customer fraud and compliance requirements.
Ready to get your ducks in a row? Let’s do it:
1. Conduct KYC: Know Your Customer
As a responsible business owner, it is crucial to conduct thorough customer due diligence, especially if you are required to comply with legal and regulatory requirements. One way to do this is by conducting or refreshing KYC checks.
KYC checks involve verifying the identity of your customers and assessing their potential risk factors. By doing this, you can protect your business from anti-money laundering tactics, fraud, and reputational damage. With December being an ideal time to conduct or refresh these checks, you can start the new year with peace of mind and confidence in your compliance and due diligence efforts.
- It helps ensure that you start the new year with accurate and up-to-date customer information.
- Compliance and regulatory obligations may require annual or periodic reviews.
- Quieter time in the year for all Risk and Compliance focuses on KYC and Credit data.
2. Contact Refreshers
Maintaining an accurate and up-to-date contact database is essential for effective communication and ensuring a snag-free process when reaching out to consumers for debt collection or recovery. December provides an ideal opportunity to refresh your contact list.
- Many businesses experience a drop-in customer activity as people go on holiday, which can be a quieter time to update records.
- Updating and organising your contact list can make a significant difference in achieving communication goals and objectives for the upcoming year.
As we approach the end of the year, it is important for businesses to take stock of their customer data and assess its value and potential. One effective way to do this is through data scoring.
By evaluating factors such as:
- Credit scores and impairments
- Customer lifetime value
- Affordability scoring
This allows businesses to gain valuable insights into their customer base and make informed decisions moving forward. So, if you have not already considered analysing and scoring your data, now is the time.
- Analysing the year’s data can help you identify trends and opportunities.
- Scoring helps you prioritise and target your marketing and sales efforts effectively.
- It assists in setting goals and strategies for the upcoming year.
4. AML (Anti Money Laundering) Sanction Review
Your business must take proactive measures to prevent financial loss and reputational damage, so conducting comprehensive AML Sanction Screening is essential for all accountable institutes that need to report any potential financial fraud to the regulator.
- The company’s financial transactions should be reviewed for compliance with AML regulations.
- Identify potential issues before the new year to minimise risks in the upcoming year.
- An AML Sanction Review in December can help a company prepare for any potential regulatory audits in the new year.
December is more than just a time for holiday festivities; it is a valuable window for businesses to prepare for the upcoming year. By focusing on activities like KYC checks, contact refreshers, scoring, and updating client data, you can set the stage for a successful and prosperous new year. Datanamix encourages businesses to seize this opportunity to fine-tune their operations, build stronger customer relationships, and stay compliant with regulations.
Make the most of December, and you will be well-positioned for a bright future in the world of business.