Don’t sleepwalk into a KYC arms race - Part 2: Time is money

06 December 2017

Following on from our first blog last week, let’s take a closer look at what we mean by ‘time is money’. This series of blogs looks at why we should opt-out of the Know Your Customer (KYC) arms race.

Talking to banks, we hear the same story again and again, ‘Our KYC takes too long and costs too much’. Ultimately, the longer it takes to perform and the more handoffs there are, the more costly it is. It is not uncommon to take more than 30 hours to perform KYC on complex high risk cases. This is increasingly unsustainable when you multiply it across the number of customers.

Banks need to start thinking of ways to make the KYC process more efficient. One way is the use of Robotic Process Automation (RPA) to take the standardised processes out of human hands where time is lost and mistakes can occur. This allows banks to focus on areas of the process which are more subjective.

Three areas where we see the most time can be saved by embracing technology:

  1. Collecting required documentation from reliable sources;
  2. The way screening is performed, where often archaic tools are used; and finally
  3. Technology platforms used to document the KYC are not user-friendly.

We have a variety of tools and technologies that can help automate elements of the KYC process making it efficient and cut the time it takes to perform. We have typically seen cost savings of between 5-10%.

Stay posted for next week’s blog on the importance of taking a risk based approach… 

Imran Farooqi | Partner
Profile | Email | +44 (0)7711 924681
Follow @ImranFarooqi
Twitter
LinkedIn
Facebook
Google+

Comments

Verify your Comment

Previewing your Comment

This is only a preview. Your comment has not yet been posted.

Working...
Your comment could not be posted. Error type:
Your comment has been saved. Comments are moderated and will not appear until approved by the author. Post another comment

The letters and numbers you entered did not match the image. Please try again.

As a final step before posting your comment, enter the letters and numbers you see in the image below. This prevents automated programs from posting comments.

Having trouble reading this image? View an alternate.

Working...

Post a comment

Comments are moderated and will not appear until the author has approved them.