Is Perpetual KYC the future of compliance?

The latest instalment of Delta Capita’s FinTech Series saw Chris Cowan Managing Consultant, host a panel of industry experts to discuss the impact, use and benefits of perpetual KYC. The panel consisted of Gary McClure, CEO CLM, Tracey Allen, COO CLM, Nigel Grice, Head of Product CLM, joined by Riddhi Sen Global Head of Data, Technology and Solutions and Lior Perry of Blackswan Technology.

The session kicked off when a view of the main challenges within KYC such as finding the balance between maintaining compliance whilst improving customer experience and how financial institutions and managing the costs of fulfilling KYC obligations and motivating staff.

The DC product team then outlined how technology has developed and has helped address a number of these challenges. A good discussion ensues on how DC advises clients on transitioning to a continuous or perpetual KYC model using the latest technology combined with accurate “live” data sources to enable the most up-to-date view of the client portfolio is always available.

The main part of the session was then on a live demonstration of the DC technology and using real examples of triggered KYC reviews and the related case management and reporting on these cases.

Technology within KYC

Good debate ensued on the platform and its benefits for clients. The session clouded around how compliance teams see perpetual KYC and how technology can transform KYC from being an activity that occurs irregularly every few years after onboarding to an automated trigger-based activity that works in real time. This shift to continuous KYC can be an enabler for compliance teams, helping them transition from a purely regulatory business function to using it as a proactive risk tool and business driver.

The impact of continuous KYC

In conclusion, perpetual KYC is a proactive approach to customer due diligence and ongoing monitoring of customer relationships. By automating the KYC process and making it real-time, compliance teams can better manage risk and mitigate the likelihood of financial crime.

Moreover, the use of technology in KYC can also help in reducing manual workload and increasing efficiency, enabling compliance teams to focus on more high-value tasks such as risk assessments and investigations.

In addition to these benefits, continuous KYC can also help organizations stay compliant with regulatory requirements and keep pace with the rapidly changing threat landscape. With the use of advanced technologies like artificial intelligence, machine learning, and big data analytics, compliance teams can quickly detect and respond to potential risks and suspicious activities.

Overall, the adoption of continuous KYC and the use of technology can help compliance teams improve their operational efficiency and effectiveness while providing a better customer experience.

How can Delta Capita help?

Delta Capita has an experienced client lifecycle management (CLM) team that run managed services and perform KYC across many financial institutions. With this experience, we have a strong view of industry best practice and how Perpetual KYC can provide you with a valuable insight.

To find out more, contact us and speak to one of our experts.