Following are the 6 Key areas outlining "must-have" knowledge and should be shared as common understanding among Agile Teams:
- Domain Knowledge: Understanding banking operations, regulations, and customer needs can help you design and develop software solutions that are more relevant and effective for financial institutions.
- Problem-Solving Skills: Experience in banking often involves dealing with complex problems, which can translate well into software development, where analytical and critical thinking skills are essential.
- Project Management: If you have experience managing projects or teams, these skills are valuable in banking apps development, particularly in agile methodologies and project management roles.
- Regulatory Awareness: Knowledge of compliance and regulatory issues(KYC and AML; explained further below) in banking can be crucial when developing software for financial services, ensuring that products meet legal standards.
- Communication Skills: Working in banking usually requires strong communication skills, especially when collaborating with stakeholders. This ability will be useful in any agile team role, especially in client-facing positions or cross-functional teams.
- Transferable Skills: Skills such as data analysis, customer service, and risk management are transferable and can enhance your effectiveness in banking domain related software/web/aps design and development roles, particularly in areas like data analytics, user experience design, or product management.
It's a complex domain and can't be covered in 1 article so let's focus on one area which is about; what is crucial to understand about Anti-Money Laundering (AML)?
As an Agile Team member working in the banking industry, it's crucial to understand Anti-Money Laundering (AML) procedures because financial institutions are under significant regulatory scrutiny to prevent money laundering and other financial crimes. Here’s a breakdown of key AML procedures to be aware of:
1. Customer Due Diligence (CDD)
- Identification and Verification: Understand the importance of verifying the identity of clients before establishing a business relationship. This includes gathering documentation such as ID cards, business registration details, etc.
- Risk Assessment: Be familiar with how banks assess the risk level of customers based on factors like their geographic location, type of business, and transaction activities.
2. Enhanced Due Diligence (EDD)
- For higher-risk customers, know that banks must perform more thorough checks and gather additional information to understand the potential risks associated with the relationship.
3. Ongoing Monitoring
- Transactions must be continuously monitored for suspicious activities. Be aware of how this is integrated into the development process and the importance of real-time data processing.
4. Transaction Reporting
- Understanding the requirements for reporting suspicious transactions is essential. Financial institutions are typically obligated to report transactions that appear to be suspicious to the relevant authorities.
- Familiarize yourself with the systems used for capturing and reporting these transactions.
5. Training and Awareness
- AML training is crucial for all employees. As a Scrum Master, ensure that your team understands the importance of AML compliance and how it relates to their work, especially in the context of developing software that handles financial transactions.
6. Regulatory Compliance
- Be aware of the relevant laws and regulations that govern AML practices in the banking sector, such as the Bank Secrecy Act (BSA) and the USA PATRIOT Act in the U.S.
- Understanding how these regulations impact the development process and can shape user stories or acceptance criteria is important.
7. Policies and Procedures
- Familiarize yourself with your institution's specific AML policies and procedures. This includes understanding the escalation processes for reporting suspicious activities.
8. Collaboration with Compliance Teams
- Work closely with compliance teams to ensure that your projects align with AML requirements. This may involve iterative feedback and adjustments throughout the Scrum process.
9. Use of Technology
- Understand how technology, such as transaction monitoring systems and analytics platforms, plays a role in AML efforts. This can influence the technical debt and architecture decisions your team makes.
10. Documentation and Audit Trails
- Discuss the importance of maintaining clear records and documentation as part of AML compliance. Auditable trails are necessary for demonstrating adherence to AML protocols.
Incorporating AML Awareness in Scrum
As a Scrum Master, you can integrate this understanding of AML procedures into your Agile practices by:
- Incorporating Training: Organize training sessions or workshops on AML for your team.
- Inclusive Planning: Involve compliance experts in Sprint Planning or reviews to better understand client needs and regulatory requirements.
- Creating User Stories: Develop user stories that focus on compliance requirements within your software products.
Understanding these procedures not only helps your team remain compliant but also enhances the overall integrity of your projects in the banking domain. If you have further questions or need more details on specific aspects, feel free to ask!
