Sarah Wai June 4, 2021 7:08 am

Keeping our customers safe with transaction monitoring

We recently reached a milestone at Neat… We have had 1 million transactions processed by our transaction monitoring system! It is really important to us here at Neat to keep our customers safe so we wanted to delve a little deeper into how we do that.

Let’s start with what transaction monitoring is…

What is Transaction Monitoring?

Transaction monitoring (TM) is a process by which Neat reviews the payments made by its customers both in real-time and on a holistic trend based approach.

These techniques allow Neat’s team to review payments that are being made and received by customers and analyse them in accordance with the data we have already obtained on that customer previously. 

That data might include previous payments that have been processed, as well as the information collected when they originally set up the Neat account. The key is to understand that customers are transacting in a manner in which we would expect them to, based on how they claim to be conducting business.

 Transaction monitoring is key to detecting financial crime and fraud. The core purpose of this is to protect you, as Neat customers.

Why is Transaction Monitoring important?

Neat is regulated in both Hong Kong and in the UK and as such, we have certain regulatory obligations to conduct transaction monitoring on all our customers. This ensures that we are compliant with Anti Money Laundering (AML) and Counter Terrorist Financing (CTF) requirements.

As a Neat business customer, it is possible you have received a compliance query in relation to your transactions previously.

Firstly, we do this to ensure that you’re using your Neat account in the manner in which you, as the customer, intended.

Secondly, we want to make sure that all Neat customers, as well as Neat’s business partners, are protected. We understand that the vast majority of our customers are honest businesses and sometimes your transaction might get slowed down as a result of our checks.

How we do it a customer-centric way

At Neat, our focus is to put the customer at the center of everything we do and so this is an area we are investing a lot of time to improve on. 

We understand that Neat’s customers simply want to get business done.  The last thing they want is to be chasing their money that might have been held up by compliance checks.

We do aim to make the payment process as smooth and transparent for our customers as possible. Ultimately these two processes will clash and approval times can sometimes be affected. We strive to eliminate friction for our customers, but we know we can do more.

Each customer is different, whether this is the country in which you conduct your trade, the industry in which you operate, or the people that you employ. As a result, each business faces a unique set of risks that we want to protect you from. 

The team at Neat strive to achieve a deep understanding of each individual business we onboard. This is so that we can ultimately be comfortable processing the transactions linked to that business. A one size fits all approach is not necessarily effective in this instance and so a different set of controls is adjusted for each business. 

Sometimes we get it wrong and create too much friction. We are working hard to put that right.

If Neat’s team does have some queries about a particular transaction, the best way to resolve the issue is to provide a quick, concise response to our queries.  This will usually resolve the issue within a very short period of time and enable us to understand your business even better so as to help make future transactions seamless.

Our successes and learning

We know that the vast majority of Neat’s customers are conducting business in an honest and transparent manner.  It is worth noting that over 97% of business transactions are processed without a problem, but it is the remaining 3% of payments that we want to get better at.

We continue to work on understanding our customers and their needs. Our marketing team are reaching out to companies to help us understand exactly what their pain points are, so  we can then act based on the feedback. By knowing more about the transactions Neat customers are conducting, the more we can teach our systems to understand these payments in the future.

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