Today, we honour the memory of Holger Wandt, our dear colleague and one of the founders of our natural language processing principles, who passed away exactly one year ago.
Holger loved to share his knowledge on a variety of topics. Back in 2016 he already spoke passionately and convincingly about the importance of High Precision Matching for financial organisations; a topic that is still very relevant 5 years later.
In honour of his legacy, we are once again sharing his blog 'Customer screening with high precision matching'. We hope this will not only inspire you, but also ensure that his knowledge lives on.
As all financial organisations must demonstrate compliance with an ever growing number of rules and legislations, many vendors of customer screening systems will state that their products incorporate automated Customer Due Diligence (CDD) processes. After all, screening customers on a regular basis to see whether there are suspicious or sanctioned individuals and organisations in the data set, is an integral part of risk management.
The real challenge, however, lies in the quality of the screening process. This process must be aimed at cost efficiency, better customer experience and operational advantages. And that is only possible if you "understand" the data you are matching.
High precision matching (HPM) is a method in which probabilistic and deterministic methods are being deployed to achieve the best possible result. In other words, high precision matching uses fuzzy logic methods combined with knowledge on names, naming conventions, legal forms, companies, abbreviations, acronyms, cultural habits and the like.
It is, in fact, the ideal method to answer to the requirements of a really sophisticated screening process.
Let's have a look at some of those requirements:
As I said, these are just some of the requirements for a sophisticated screening process. High precision matching is the main provision in achieving cost efficiency, better customer experience and operational advantages. To learn more, please read our white paper ‘The benefits of high precision matching in automated screening’. Enjoy!