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Maintaining an accurate and up-to-date customer database is no longer just a best practice, it’s a regulatory obligation and a core business necessity. In regulated sectors such as banking, insurance, and financial services, customer data accuracy directly impacts compliance, operational efficiency, and customer trust.

Yet, for many companies, keeping this data current remains a significant challenge, especially when it involves both individuals and legal entities. This article explores the key obstacles organizations face in updating their customer information, and presents a practical, multichannel approach to address the issue effectively.

Why keeping customer data up-to-date is crucial

Customer records cover a wide range of data types: proof of identity, postal addresses, family situations, shareholder registers, certificates of existence, association statutes, and more. For regulated industries, this information must be reviewed and updated regularly.

Under European AML/KYC directives, as well as local authorities such as Luxembourg’s CSSF, maintaining accurate customer data is mandatory.

Beyond compliance, outdated data can lead to:

• Communication failures
• Missed renewals or verifications
• Audit risks and regulatory penalties
• Lost time due to repeated outreach attempts or incomplete responses

Common challenges organizations face

Despite the importance of up-to-date data, many companies struggle with:

• Outdated or missing information in customer databases
• Low response rates when clients are asked to update their information via email or apps
• Limited internal resources to manage, track, and process the updates
• Inefficient systems for verifying and consolidating documents
• Returned or undeliverable mail, particularly when postal addresses have changed

These challenges are amplified when the data involves complex legal documents or institutional clients with multiple contacts and layers of information.

The limits of digital-only communication

Many organizations rely on email notifications or secure portals (like web banking platforms) to request data updates. However, these efforts often fall short:

• Clients ignore or overlook messages
• Less tech-savvy users may not engage with digital platforms
• Bulk messages can end up in spam folders or go unopened

Relying solely on digital channels leaves gaps, especially in reaching certain customer segments.

A multichannel approach: reaching more customers, more effectively

To overcome these barriers, a multichannel strategy, combining digital and postal communication, proves far more effective.

Companies like Victor Buck Services specialize in supporting customer data collection through personalized postal campaigns that increase engagement and simplify the update process. In addition to digital campaigns, a postal approach increases visibility, improves response rates, and caters to all user preferences.

The benefits of a managed, multichannel process

Outsourcing or structuring the data update process delivers clear benefits:

• Reliable and complete customer data
• Regulatory compliance with evolving AML/KYC obligations
• Higher response rates and reduced friction
• Operational efficiency: less manual work, fewer errors
• Cost savings in communication, follow-up, and error handling
• Better customer experience, through clear and accessible communication

In a world where regulations tighten and customer expectations rise, outdated data is a risk no company can afford. Yet, the solution doesn’t have to be complex or costly. By combining the reach of physical mail with the speed of digital channels, and by structuring the follow-up and processing, companies can close the data gap, and turn a compliance obligation into an opportunity for operational excellence.

Contact us for more information.