Know Your Customer (KYC) is not a one-and-done process. It extends far beyond the initial client on-boarding and compliance process, reaching into the lifecycle events that customers go through as part of their long-term relationship with their financial services provider.
Traditional KYC carries a lot of operational risk and huge inefficiencies. As a data and document intensive process, financial institutions have traditionally conducted KYC reviews manually, hindered by siloed systems and data repositories, making client outreach a necessity in every instance.
Most firms solve compliance by hiring more personnel, often relying on outsourced personnel in third party agencies, throwing headcount and cost at the problem. Technology can solve this problem in a simpler and cheaper manner, compared to how much we have seen financial institutions currently spend on compliance.
In a Digital KYC context, the vast majority of low- and medium-risk customers can be straight through processed (STP), with the ability to manage by exception those customers who don’t fulfil the full requirements of digital STP. This in itself alleviates a lot of the operational overhead required to perform KYC reviews and allows financial institutions to refocus their human resources on higher risk or higher value-added customer activities.
By offering a more frictionless approach to KYC reviews, financial institutions can remove all the unnecessary, time-consuming and inconvenient tasks and customer asks, and ensure a happier, more satisfied customer experience in the process.
We engage experts who can conduct a full operational risk review of your KYC process with the objective to identify resource wastage in terms of human capital and time as well as provide valuable recommendations to streamline and automate tasks in line with your available technology infrastructure.
The review will involve our detailed analysis of existing policies and procedures, as well as existing automation capabilities and human resources allowing us to make the most effective recommendations in this respect.
Reviewing and realigning the KYC process will not only address the day-to-day expenses and inefficiencies but will also help assure the regulator that you are serious about resolving compliance issues on a proactive basis.