Next topic

Requirements essentials

Financial institutions frequently need to collect documents from their customers and prospects (referred to in Pega Client Lifecycle Management (CLM) as “Contracting Parties”), as well as various other individuals or organizations that are associated with the Contracting Parties (referred to in Pega CLM as “Related Parties”).
Governing bodies in every jurisdiction have varying guidelines on which documents to collect, when to collect them, and sometimes how to collect them. Different jurisdictions and governing bodies set specific requirements for the following activities:

Carry out a KYC process on the onboarded, maintained, or offboarded customer
Confirm an organization’s legal identity
Ensure that a customer understands the risks related to a given product
Confirm that a customer’s income, or assets, are in fact as they are represented

Implementing and managing the rules and necessary approvals is very costly and time-consuming for both the financial institution and, in many cases, for the customers.

Financial institutions need a solution that meets the following approaches:

Fully support the concept that a contracting party may have many related parties
Reduce the total number of requirement cases by handling multiple documents in a single case
Reuse any relevant documents that the customer has already provided, whenever this is possible
Make it possible for “equivalent” documents to be configured with their own reuse rules
Make it easier to configure requirements

Pega CLM has created a Requirements module to simplify the documentary requirements management process, by providing:

Support for multiple documents and multiple business scenarios
Management of documentary requirements for multiple parties
Classification of requirement sets by purpose for easy and fast retrieval
Streamlined process for collection, verification, and approval of documents
Automation in the reuse of existing documents and requirements
Guided validation and data capture capabilities
Streamlined UI/UX for the review of documentary requirements and associated satisfaction logic

General Concepts

Architecture

A Requirements module consists of three main entities:

Document - Represents a document to be collected from the customer, for example, a passport.
Requirements - Implemented in Pega applications as a case using a custom rule, these are requirements that define all the work and documents or other demonstrations needed to meet a particular functional requirement, such as a Verification of identity for Canada.
Requirement sets - A custom rule containing a grouping of related requirements that must be completed to satisfy a functional need, such as a Verification of identity or Verification of address.

Customer journey cases initiate the requirements “synchronization” process, which sets contextual information that is used throughout the requirements case, as well as either a list of specific requirement sets to be applied or permissions for the system to automatically determine the applicable requirement sets. Based on the list of requirement sets provided, the system uses the list to determine the applicable requirements and then creates relevant requirement cases.

Requirements synchronization can be initiated multiple times in a customer journey’s case lifecycle, when relevant information is added or changed. When initiated, requirements synchronization determines whether new requirement cases are needed and whether any existing ones must be withdrawn based on the changes.

To provide scope for automation and avoid requesting the same document again from the customer, you can configure the requirements processes to reuse a previously provided document based on the type of customer journey or the type of document. The requirements process can also be configured to reuse a previously completed requirement based on specific situations. To streamline processing, clients can configure the requirements process to skip certain stages based on specific situations.

Check your knowledge with the following interaction: