Know Your Customer (KYC) is no longer just about the Customer.
Are you ready for future of KYC? You might not be.
Why? KYC is evolving from a customer on-boarding-centric process to a management discipline in its own right that is now aligned with entire customer lifecycle, not just the start of the relationship. At same time, it's going way beyond just the customer. The new Know Your Customer -- KYCis challenging firms to get really good at managing cases and leveraging data from many sources to gain insight, react quickly, and protect a firm's reputation.
All of this is difficult...I get it. I have managed many parts of this process in the past and understand how complex the reality of KYC can get. However, I also get that we have improved post-financial crisis by focusing more resources, picking better technologies, and creating foundation to support this expanded definition of KYC.
So you might be wondering, what exactly is that happening? How is KYC evolving? I'm glad you asked.
Consider these facts:
As the Financial Services industry continues to struggle with serious inefficiencies in how Know Your Customer review cases are managed, most firms have done a decent job creating high-volume solutions on the retail end of the spectrum for example, managing rules and integrations with credit rating providers. In those cases where human judgment and oversight are more paramount, that's where it gets more complicated. It is these Enhanced Due Diligence (EDD) cases that tend to drive increased processing requirements. Of course, these also tend to fall more on the lucrative end of the risk spectrum. Firms face challenges, such as:
The future can't be predicted. What we can do is create nimble and flexible structures that can adjust without losing goals of managing KYC processes quickly, with high degree of accountability and process visibility.
So how can you meet regulatory and corporate governance demands for greater insight into your firm's ecosystem of customers, counterparties, and other constituents? Enable better decision making by connecting dots. Consistently.
Practice Lead, Global Capital Markets and Banking, Appian
Appian is a software company that automates business processes. The Appian AI Process Platform includes everything you need to design, automate, and optimize even the most complex processes, from start to finish. The world's most innovative organizations trust Appian to improve their workflows, unify data, and optimize operations—resulting in better growth and superior customer experiences.