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:
- Collecting required documentation from reliable sources;
- The way screening is performed, where often archaic tools are used; and finally
- 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…