Mon. Mar 4th, 2024

Key Elements:

  • A recent roundtable discussion hosted by Encompass Corporation highlighted the key insights from industry leaders regarding KYC automation in the banking sector.
  • Experts emphasized the importance of data in enhancing KYC processes and the need to match external data with internal databases.
  • The discussion addressed the challenge of creating a “golden record” for customer profiles and the potential use of client conversations to obtain accurate customer information.
  • The concept of perpetual KYC (pKYC) was discussed, which focuses on real-time responses to changes in KYC risk indicators instead of comprehensive automation.
  • The manual process of managing KYC email-to-case management was also a topic of discussion, and some professionals suggested the use of out-sourced portals to reduce processing times.
  • A tiered approach to automated KYC was proposed, with a more personalized approach for high-risk customers and full automation for low-risk profiles.
  • The importance of KYC automation in driving future revenues and business benefits was underscored, as efficient KYC processes are critical for winning business.
  • Challenges such as budget cuts, workforce changes, and increased regulatory demands have impacted the KYC landscape, with periodic reviews taking an average of 79 to 85 days.

In a recent roundtable discussion hosted by Encompass Corporation, industry leaders in the banking sector shared key insights on KYC automation. The discussion highlighted the importance of data in enhancing KYC processes and the need to match external data with internal databases. Experts emphasized the need to understand the risk associated with each data attribute, as not all data carries equal weight in KYC procedures.

The roundtable also addressed the challenge of creating a “golden record” for customer profiles, which involves reconciling disparate customer truths across a bank’s branches and different jurisdictions. Attendees discussed the potential need for client conversations to obtain accurate customer information.

Perpetual KYC (pKYC), a concept focusing on real-time responses to changes in KYC risk indicators instead of comprehensive automation, was another topic of discussion. The roundtable advocated for a tiered approach to automated KYC, with a more personalized approach for high-risk customers and full automation for low-risk profiles.

The manual process of managing KYC email-to-case management was also addressed, with some professionals suggesting the use of out-sourced portals to reduce processing times. However, the adoption of these portals in corporate and commercial banking remains limited.

Furthermore, the roundtable emphasized the importance of KYC automation in driving future revenues and business benefits. Efficient KYC processes are critical for winning business, especially in RFP processes with global corporate clients. However, challenges such as budget cuts, workforce changes, and increased regulatory demands have impacted the KYC landscape, with periodic reviews now taking an average of 79 to 85 days.