Latvia’s Financial Sector Urged to Reimagine Know Your Customer Process
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Latvia’s financial services firms are being advised to rethink their existing know your customer (KYC) processes and explore opportunities for improvement. A recent mini-roundtable discussion, featured in Risk & Compliance Magazine, brought together KPMG financial crimes and analytics leaders to share insights on how to reimagine KYC processes.
Key Takeaways
- Tailor KYC processes to individual risk appetite
- Calibrate systems while staying current with regulatory developments
- Emphasize digital identity verification for efficiency and scalability
- Introduce managed services solutions and automate the KYC function
- Transform KYC from a regulatory requirement to a quality driver
The Importance of Digital Identity Verification
The experts emphasized the importance of digital identity verification, citing advantages in efficiency and scalability. This approach enables firms to quickly and accurately verify customer identities, reducing the risk of fraud and non-compliance.
Automation is Key to Efficient KYC Processes
To achieve optimal operations, firms were advised to introduce managed services solutions and automate the KYC function. By automating KYC processes, firms can transform them from a regulatory requirement to a quality driver, improving overall efficiency and effectiveness.
The Future of KYC Processes
The discussion also touched on technologies and approaches that will underpin the frameworks adopted by financial services firms in Latvia, as well as predictions for KYC processes in the years ahead. The experts agreed that automation is key to making KYC processes more efficient and effective.
Roundtable Participants
- Thomas P. Keegan, Principal at KPMG US
- Jordan Klovsky, Director Advisory at KPMG US
- Kevin Lee, Director Advisory at KPMG US
- Michaela Soctomah, Advisory Managing Director at KPMG US