Financial Crime World

Banks Unite: Transforming the AML and KYC Customer Journey with Data Fabric, Automation, and Flexible Workflows

In today’s digital landscape, banking and financial services organizations are facing the challenge of streamlining their end-to-end customer journeys. The Know Your Customer (KYC) process is a crucial aspect of this journey, but it often gets bogged down in complexities.

A Study Reveals the Key to Successful KYC Processes

A recent study found that leading institutions with successful KYC processes share three key characteristics:

  • Fast Access to Data: Critical data sets are essential for a strong KYC process. However, legacy technology and data silos often inhibit real-time analysis.
  • Reliance on Automation: Intelligent automation is crucial for addressing complex regulatory obligations and managing risk.
  • Flexible, Reusable Workflows: Reusable workflows are essential for improving KYC process speed.

Fast Access to Data

Critical data sets, including sanctions and watchlist screening, transaction monitoring, executive bios, company reports, and credit and lending history, are essential for a strong KYC process. However, legacy technology and data silos often inhibit real-time analysis.

Data fabric capabilities built into a platform for process automation can revolutionize the way banks access and analyze data. A virtualized data layer enables employees to access any data source in real-time, solving the data silos problem without replacing legacy systems.

Reliance on Automation

Intelligent automation is crucial for addressing complex regulatory obligations and managing risk. Modern automation technologies include intelligent document processing (IDP) and machine learning (ML), which can help analyze AML alerts faster than compliance teams alone.

AI algorithms can also improve visibility into decision-making processes, enabling banks to reach informed decisions quickly. Automation can reduce manual errors, freeing up resources for more strategic activities.

Flexible, Reusable Workflows

Reusable workflows are essential for improving KYC process speed. Case management software is a prime candidate for reusing elements, such as creating, triaging, assigning, reviewing, and remediating cases.

By storing and reusing these elements, banks can create a large speed advantage while improving quality. Successful companies build a case once and repeat it using automated processes with connected APIs, scaling at pace across the KYC lifecycle.

The Future of AML and KYC

As regulatory demands evolve, banks will need to adjust their KYC processes to keep pace with emerging threats and technologies. Trends to watch in 2023 and beyond include:

  • Added regulations
  • Wider ESG reporting demands
  • Increased use of machine learning and AI
  • KYC as a competitive advantage

By embracing data fabric, automation, and flexible workflows, banks can transform the AML and KYC customer journey, improving speed, quality, and compliance while differentiating themselves in a crowded market.