REIMAGINING KNOW YOUR CUSTOMER (KYC)
R&C: In your opinion, why do financial services (FS) firms need to reimagine their know-your-client (KYC) processes? How much room is there for improvement in existing processes?
Lee: The tech-driven pace of change in the financial services (FS) industry is the primary disruptor shaking up the know your customer (KYC) landscape. The customer can now open an account, deposit a cheque, execute a trade or secure a loan online nearly instantaneously. This dramatic shift in the customer experience exacerbates challenges firms were already struggling with, specifically, high volumes of KYC activities and demanding turnaround times. Firms must complete these KYC obligations faster and with more precision, so it is not a detriment to the customer experience which risks losing them to the competition. Technology is driving the need for firms to reimagine their KYC processes, but it is also the answer. The cloud, blockchain, artificial intelligence (AI), machine learning (ML) and robotic process automation (RPA) must be leveraged to improve customer risk profiling, quicken adverse media and reputational risk reviews, and reduce manual exception handling and false positives.
Apr-Jun 2023 Issue
KPMG LLP