Financial Institutions Can Improve Customer Experience by Moving Away from Static KYC Models
In an effort to combat financial crime and enhance customer experience, financial institutions are being encouraged to adopt perpetual Know Your Customer (KYC) models. The traditional static KYC approach, where customers are reviewed once at the onset of a relationship, is no longer sufficient.
Limitations of Static KYC Models
The static model fails to keep pace with changing customer behavior and new financial crime trends. In contrast, perpetual KYC models continuously monitor and update customer information in real-time, allowing for more effective detection and prevention of financial crimes.
Benefits of Perpetual KYC Models
Perpetual KYC models offer several benefits, including:
- Improved Financial Crime Detection: By continuously monitoring customer behavior and updating customer information, perpetual KYC models can detect and prevent financial crimes more effectively.
- Enhanced Customer Experience: Perpetual KYC models allow for a more personalized and streamlined onboarding process, improving the overall customer experience.
Key Calls to Action
Haytham Jaber, Director at KPMG’s Financial Crime practice, emphasized that financial institutions can start now by considering six key calls to action:
- Develop Strategic Roadmaps: Develop strategic roadmaps for financial crime transformation.
- Implement Global Perpetual KYC Solutions: Implement global perpetual KYC solutions.
- Advise on Right Tools and Technology: Advise on the right tools and technology for innovative customer monitoring.
Expertise from KPMG’s Financial Crime Practice
KPMG’s Financial Crime team has extensive expertise in helping clients transition to enhanced KYC models. The firm offers a range of services, including:
- Strategic Roadmap Development: Develop strategic roadmaps for financial crime transformation.
- Technology Strategy Design: Design technology strategies for innovative customer monitoring.
- Operational Model Optimization: Optimize operational models to improve efficiency and effectiveness.
About KPMG
KPMG is a leading global professional services firm that provides audit, tax, and advisory services. The firm’s Financial Crime practice specializes in helping financial institutions combat financial crime and transform their operations to stay ahead of emerging threats.
Contact Us
If you would like more information on how KPMG can help your organization transition to enhanced KYC models, please contact:
- Ian Nelson, Partner, Head of Financial Services, Head of Regulatory Consulting: ian.nelson@kpmg.ie | +353 87 7441989
- Haytham Jaber, Director, Financial Crime: haytham.jaber@kpmg.ie | +353 87 1116978