Financial Crime World

Transforming Customer Monitoring with Real-Time KYC

Financial institutions are being urged to move away from static customer periodic review models and adopt a real-time Know Your Customer (KYC) approach to stay ahead of evolving financial crime threats.

The Current State of KYC

The current KYC process involves collecting information about customers at the outset of their relationship and then reviewing it periodically. However, this approach can be inadequate in detecting suspicious transactions and activities that may have occurred between review periods.

Benefits of Real-Time KYC

Real-time KYC enables institutions to monitor customer activity continuously, allowing for quicker detection and response to potential fraud. This approach is crucial in preventing fraudulent activities and ensuring compliance with regulatory requirements.

Expert Insights

“Financial crime is a constantly evolving threat, and financial institutions must adapt their strategies to stay ahead of criminals,” said Ian Nelson, Partner at KPMG. “Real-time KYC offers a more effective way to identify suspicious transactions and prevent fraudulent activities.”

Implementing Real-Time KYC

To achieve real-time KYC, financial institutions are advised to invest in advanced technologies such as machine learning and data analytics. These tools can help institutions analyze large amounts of customer data quickly and accurately, identifying potential red flags that may indicate fraudulent activity.

In addition to technology, financial institutions must also adopt a more proactive approach to monitoring their customers’ activities. This includes:

  • Setting up real-time alerts for suspicious transactions
  • Conducting regular reviews of customer accounts

The Importance of Proactive Monitoring

“Financial institutions must prioritize customer monitoring and take a proactive approach to detecting and preventing fraudulent activities,” said Haytham Jaber, Director at KPMG. “Real-time KYC is an essential step in achieving this goal.”

Benefits of Real-Time KYC

Implementing real-time KYC may require significant investments, but experts at KPMG believe that the benefits far outweigh the costs. Not only can it help institutions prevent financial losses and reputational damage, but it can also improve customer satisfaction by providing a more secure and trustworthy banking experience.

Expertise in Financial Crime Transformation

KPMG’s Financial Crime Transformation team is equipped with the expertise and tools necessary to help financial institutions achieve real-time KYC. The team offers services such as:

  • Developing strategic roadmaps
  • Implementing perpetual KYC solutions
  • Advising on technology strategies

Get in Touch

For more information on how KPMG can help your institution transform its customer monitoring approach, please contact:

Phone numbers:

  • Ian Nelson: +353 87 7441989
  • Haytham Jaber: +353 87 1116978