Have you ever been concerned that a single error in your FSCS SCV report could result in a negative outcome with the regulators? Yes! Inaccurate data in FSCS SCV reports presents potential risks for the financial institution and its customers.
Think of trusted databases like the FCA or Companies House as intelligence agents who look for errors and possible risks in your personal data before they become compliance issues.
This blog examines how these integration tools function, from risk classification (high, medium, low risks) to hidden threats like duplicate entries and missing information. Additionally, we will investigate the potential of these validation tools to optimise your productivity, thereby saving you time and resources.
Third-Party Integrations for Enhanced Data Validation
Third-party integrations of trusted databases maintained by independent organisations such as FCA DB, Royal Mail DB through API, Companies House, Charities Register, BFPO Address, OFAC Sanction customer check. provide dependable and effective solutions for the verification of diverse data points against multiple sources. Ensuring the accuracy of data, mitigating the risk of fraud, and optimising business operations are all its critical objectives.
The selection of optimal integration for your needs depends on the data sources, volume of data, integration complexity, cost, data privacy regulations, and security measures of the platform.
Third-party platforms offer various integration options, including APIs for automating data validation, web services for user-friendly interfaces, bulk upload tools for efficient one-time uploads of large datasets, and batch processing for offline verification and later results.
Here’s a breakdown of few of the extensive array of trusted sources against which the customer data is validated by third party integrations:
FCA (Financial Conduct Authority) Register
Companies with Entries in Register
The information contained in the “FCA Register” database pertaining to non-individual customers (companies) is returned by this validation. A match between a company number or name and the “FCA Register” database will provide additional details. The company details must be evaluated by the bank and subsequently transferred to an ineligible pot, contingent upon factors such as the firm type, firm legal status, firm authorisation status, or firm permission status.
Companies House/ Charities Register
Invalid UK Company Registration Number
When a company’s registration number does not exist or does not match the “UK Companies House Registry” or “UK Charity Registry,” this validation returns non-individual customer details for residents of the UK. The bank will conduct a comprehensive analysis to identify any irregularities to facilitate data cleansing on the company name/number, ensuring that it corresponds to the registered legal name.
Invalid UK Company Registration Number but Possible Match Found in Companies House Registry
The validation process returns non-individual customer details with invalid company numbers, but whose company name matches the company’s house database. Special characters are removed, and a partial search is performed with a tolerance level above 80%. The bank checks the accuracy of the partially matched company name with address details.
Possible Multiple Entities under One SCVRN Number
The FSCS guidelines require multiple customers not to be reported in a single SCVRN. The validation process extracts company names with joining terms, matches them with the company’s house registry, and reports any matching part names in the exception report.
BFPO Dataset
Incorrect Positioning of BFPO Address
According to the FSCS, the BFPO number must be in the final line of the address, the country field must be blank, and the postcode must be reported if the address has one. By examining the postcode format (BF) and determining whether any of the address lines contains the text BFPO, this validation determines whether the customer has a BFPO address. This validation verifies the BFPO number reporting position and country field emptiness if the customer’s address is BFPO. If the BFPO address fails to meet the FSCS requirements, this information is logged in the exception report.Loqate Dataset
Invalid UK Postcode
The postcode is required for customers residing in the United Kingdom, as per FSCS guidelines. It returns UK customer addresses without postcodes, invalid postcodes, or incorrect postcode formats.UK Postcode exists in NON-UK Address
Also, this validation returns customer details from non-UK countries with valid UK postcodes.UK and OFAC Sanction Dataset
Possible Sanction Customers
This validation compares the customer’s name to the sanction lists of the United Kingdom and OFAC. If a customer’s name matches, the exception report will include that customer’s information.Classifying Potential Risks in FSCS SCV Reporting
Inaccurate data in FSCS SCV reports presents potential risks for the financial institution and its customers. Hence, FSCS SCV has a standard that classifies and considers risks as high, medium, or low. To ensure FSCS compliance, the financial institution must address the high and medium risks associated with the reporting data.
High Risk
FSCS considers the following high-risk items in the customer data that should be corrected to mitigate compliance risks and maintain “Green Status Adherence” with PRA.
Example:
- Missing Customer Name
- Missing/Invalid Customer Title
- Missing UK Address Line-1
- Incorrect Account Hold Indicator
- Invalid/Missing UK Postcode
- Duplicate Customer exist in Customer information output file
- First Forename only exist
- Exclusion Type value exist in SCV file
- Data Format issue
- Invalid Account Status Code
- Duplicate Passport Number
- Companies with entries in FCA register
- Field Missing in SCV/Exclusion file
Medium Risk
FSCS categorises the following data points within Single Customer View (SCV) reports as medium risk factors, which must be fixed to ensure smoother and more efficient SCV reporting.
Example:
- Missing Customer Date of Birth
- Customer Name in Address Fields
- Special Character Exist in Customer Details
- Invalid Postcode in Non-UK Customer address
- Missing/Invalid National Insurance Number
- Duplicate/Invalid Email address
- Duplicate/Invalid Main phone number
- Missing IBAN
- Invalid IBAN
- Missing/Invalid BIC
- Missing/Invalid UK Company Registration Number
- Missing or Invalid Product Type
- Unusual Characters in Customer name
- Address Lines Duplicated
Low Risk
The following items have been categorised as low risk by FSCS. Organisations must address those to maintain data integrity and ensure comprehensive SCV reporting.
Example:
- Missing Sort code
- Missing or Invalid “Recent Transactions” status
- Missing or Invalid “Structured deposit account” flag
- Unusual Characters in Product Name
- Address Line 2 Too Short
- Unusual Characters in Account Title
Unlocking the Power of Third-Party Integrations
Greater Data Accuracy and Consistency
- Safeguard against the potential for human error.
- Auto-synchronise data across platforms to avoid discrepancies.
- Improve the credibility of data by gaining access to recent and reliable information from trusted sources.
Deter Fraudulent Activities
- Verify real-time data against reliable databases to identify suspicious activity.
- Secure your resources and reputation from fraudulent claims and transactions.
- Strengthen your capacity to satisfy regulatory mandates pertaining to KYC responsibilities.
Improve Operational Efficiencies
- Automate repetitive data tasks.
- Redirect your team’s attention to higher-value tasks.
- Reduce manual intervention and delays by seamlessly integrating data from multiple sources.
- Prioritise strategic tasks to optimise resource allocation.
Enhanced Compliance with Regulatory Requirements
- Built-in compliance features in third-party integrations simplify regulatory compliance.
- Centralised and automated data management simplifies audit trials and reporting.
- Data practices are in accordance with the ever-changing regulatory demands.
Simplifying SCV Reporting with Macro Global’s Solution
It can be difficult and time-consuming to administer Single Customer View (SCV) reporting. Macro Global is cognizant of these challenges and provides all-encompassing solutions to optimise your SCV reporting procedure, thereby guaranteeing accuracy as well as efficiency.
Presenting SCV Alliance and SCV Forza
- SCV Alliance enables your organisation of any size to effortlessly comply with FSCS SCV reporting requirements owing to its customisable design, intuitive user interface, and seamless integration with existing infrastructure.
- SCV Forza is a sophisticated solution that enhances the efficiency of the SCV reporting by leveraging advanced automation and artificial intelligence (AI) technologies to streamline processes such as data extraction, cleaning, and validation, thereby reducing the need for human intervention and increasing efficiency.
At the core of both SCV Alliance and SCV Forza lies the power of robust third-party integrations. These integrations connect your systems to various trusted databases, enabling automated data validation against
- FCA Database
- Royal Mail DB through API
- Companies House
- Charities Register
- BFPO Address
- OFAC Sanction customer check.
These integrations significantly enhance data accuracy and consistency of customer / account holder information, & account segregations, minimising the risk of errors & data duplications, and ensuring your SCV reports are reliable and compliant.
Embrace Efficiency, Reduce Risk
By leveraging Macro Global’s SCV audit and automation solutions, you can:
- Customise best fitting solutions.
- Reduce manual effort and human error.
- Improve data accuracy and consistency.
- Streamline workflows.
- Allows users to drill down data to any level.
- Track, monitor, remediate, and scale up data with minimal man-hours.
- Promote compliance with regulatory requirements.
- Reliable and trustworthy reporting.
Contact Macro Global today to learn more about how our SCV solutions can help you navigate the complexities of FSCS reporting with confidence.
SCV Alliance
FSCS SCV Audit Platform
