In this article we explain the level of efficiency that KYCP has managed to achieve based on use cases of our current clients. These measures were calculated and are based on a total of 54 use cases studied in active live scenarios, across 16 jurisdictions in 5 continents therefore even addressing different regulatory bodies and different perceptions of what risk is. The industries covered in these use cases are Fiduciary Services, such as fund and trust management, Capital Markets including investment and depositary and Asset & Wealth Management.
The statistics we will focus on are based on how KYCP can achieve increased efficiencies as well as a reduction in cost of onboarding whilst reducing risk exposure at the same time.
KYC Portal CLM has achieved a 63% target in increased efficiencies on internal processes. This statistic has proven a reduction in;
- a) cost of maintaining internal due diligence processes and teams,
- b) cost of assessing risk and the ongoing relationship with counterparties,
- c) as well as an improvement in the speed at which the services and the tasks are actually done.
Another major target that KYCP achieved is that of reducing the time to onboard customers by 55%, all throughout which, KYCP is also reducing the risk exposure.
The Customer Journey is primarily the customer lifecycle management which in plain terms, if we had to simplify it further, is the journey that customers are presented with at onboarding as well as the ongoing aspects. The latter caters for review processes and remediation exercises. Both onboarding and ongoing journeys require direct communication with the customer, and such communication happens all throughout the relationship with such customer. Not only once onboarded but also throughout the lifetime of such a subject being a customer. Based on client requests, we started investigating the possibilities of embedding such outreach elements within our client lifecycle management platform. A means to allow the back office of any due diligence process to be able to trigger, monitor and audit such communication with subjects directly. This, we believe, is one of the biggest unique selling points that led to KYC Portal reaching the efficiencies highlighted here.
We will now be going through a few key features of the product and how our clients are achieving these targets in relation to the onboarding and ongoing processes with their customers.
The first key feature is the Single Customer View. This feature allows the user to create a subject (being an individual or a corporate) which can then be reused across services, products and channels. This is used when you have subjects that are involved in different structures under different services. This function saves a lot of time and gives you increased efficiency because one doesn't need to reinput everything from scratch, including documents. This means that the proof of ID is uploaded once for a subject irrespective of how many times that subject is involved across the organisation. This also means that the team has one expiry date to manage and one document verification to conduct. Apart from not having to ask for the same documentation to the same people it also reduces your internal cost of managing multiple versions of the same document. This single customer view also centralises the screening results of a subject along with the decisions your teams are taking on false positives. Everything is merged and moved with the subject. This feature also alerts your team when you are not aware that you are trying to input a subject who is already in your database.
The Single Customer View feature helps in centralising the data of a subject across products or services, making remediation and review management more efficient. And since there is the embedded customer outreach within KYCP, having a single customer view will allow the customer themselves to re-use their own company structure when applying for different services within the organisation.
The next key feature is the Corporate Source Register which is a module that helps the onboarding and review process by allowing you to scrape and search data from 3rd party providers of company house data. From within KYCP you can search for the company, see the details, and at a click of a button you can import the data and documents that the third party has available. The user can decide which part of the structure, which related parties to import in KYCP. Since KYCP is embedded with the outreach side, you can prepare the structure with its related parties within the application in KYCP and then send it to your customer through the Customer Outreach Tool for them to finish completing the information.
Moving on now to the dynamic policy engine which is one of the most important elements in our case study. This feature impacts and helps all the aspects of onboarding, reviews and remediation and mostly contributes to the internal efficiencies. Our dynamic policy engine allows you to be in full control by giving you the ability to change, tweak, define and set your entire due diligence process based not only at company level but also at product or service level. One of the biggest headaches in this market is change; regulations are constantly changing based on money laundering directives, market happenings lead to ongoing changes in internal policies and much more. Our customers can adapt KYCP to these changes at the click of a button. This reduces your risk exposure drastically because changes are being made in real time and across your entire database.
Another feature that contributes to these efficiencies is the integration with screening service providers which allows you to link risk and workflows to decisions taken based on match or no match of records within your database.
Last but not least, is the real time automation of risk, this is another element that contributes to all aspects being discussed here and leads to the biggest efficiencies across the board. Based on all your configuration in KYCP, the system will be able to calculate risk in real time at entity level, at application level and even for each category of risk. Any data that is modified or changed leads to risk calculations being done in real time and also over a period of time. Having real time automation of risk reduces your risk exposure to the minute that risk happens by instantly alerting your team when something needs their attention. KYCP is often integrated with internal core systems so that such alerts trigger the respective actions within such systems based on the real time risk.
These are all the features we wanted to focus on today from a client use case perspective that actually led to the efficiencies of the 63% in increased efficiencies on internal processes and 55% reduction in time to onboard customers whilst all at the same time, reducing your risk exposure.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.