Know Your Customer (KYC) remediation programs help financial institutions gather customer information that identifies data inconsistencies or reveals instances of financial malfeasance. This information is crucial, but meeting the obligations of KYC has grown more complex and difficult to manage due to a plethora of controls, process layers, and programmatic complexities.

Teams charged with managing KYC often find themselves hampered by the limitations in their current KYC remediation programs. Time-consuming and clunky processes surrounding remediation and periodic reviews leave financial institutions vulnerable to the high costs of compliance, and to any changes that might occur between the duration of annual reviews. While struggling to keep up with an ever-changing regulatory landscape, these institutions leave themselves vulnerable.

A financial institution’s arsenal need no longer be limited by the inefficiencies of its KYC program. Perpetual Know Your Customer (pKYC) is a more strategic approach. It helps teams to meet regulatory expectations. Furthermore, it enables organizations to more effectively navigate internal and external pressures while also confronting suspicious customer activities.

pKYC: Driving a better solution and foundation

Adopting a pKYC methodology allows for more agile, near-instantaneous response times to changes in customer information. Managed service leader KPMG is joining forces with Quantexa to use its Decision Intelligence Platform in order to focus on helping to solve customer pKYC challenges and guide financial institutions to a better solution, offering robust customer insights not previously seen. pKYC improves effectiveness through an event-driven approach that combines intelligent data-driven insights and automation-first principles with an emphasis on more risk identification, all while remaining policy compliant.

Utilizing proven services leadership capabilities and Decision Intelligence technology, pKYC helps businesses understand data more effectively and consistently throughout the customer lifecycle. It unlocks the power of a client's robust data assets for less cost, exposing potential risks that may be hiding within the data. The pKYC approach turns data into a renewable and reusable crucial resource. By continuously monitoring activities across internal and external sources, it enables financial institutions to keep up with periodic reviews and meet stringent deadlines, freeing up time and resources that can be devoted to more profitable or necessary aspects of the business.

Proceeding with pKYC

Since there is no single blueprint for the pKYC journey, creating your own blueprint is the first step toward transformation and efficiency. Defining one’s organizational vision is key. Once this is done, it can be followed by setting imperatives as to specific customer populations.

KPMG and Quantexa help clients on their journey from remediation to pKYC. Rather than pivoting in one single step, pKYC can be implemented by emphasizing movement iteratively to first automate and expedite, and then to an events-driven approach. This helps ensure that the project remains manageable. It helps the teams and customer stakeholders build confidence in the system’s capabilities. Most importantly, it gives financial institutions the flexibility to address aspects that are of high concern, as well as enabling them to prioritize risk attributes and triggers – all while preparing for a later exploration into how to dive deeper into datasets.

Since financial institutions repeatedly find themselves forced to pivot quickly to confront the challenges that come with fraudulent acts and financial malfeasance, they need a more efficient solution to replace current remediation programs that cannot be relied upon to offer a holistic view of financial crime risk. Implementing a Decision Intelligence solution offers fully contextualized data that is easily integrated into existing systems.

Your pKYC transformation journey

A sought-after solution today, pKYC is unlike other transformation projects. Implementing these capabilities doesn’t require a complicated process or rip-and-replace technology. Rather, financial institutions can embark on an overall journey instead, one that comprises an alignment of operations, IT, compliance, and regulatory bodies—first to source and contextualize data, and then to automate or recommend resulting KYC treatments and strategies. Essentially, financial institutions want to do more where required and do less where possible. pKYC leverages advanced technology and real-time data to continuously assess a customer's risk profile throughout the ever-changing regulatory landscape.

Start the journey forward by implementing a pKYC program that allows you to move forward, avoiding the limitations of traditional remediation. Together, KPMG and Quantexa stand ready to help guide you through your transformation. As we do so, we trust you’ll be able to better identify instances of fraud, further enabling you to investigate financial crimes, improve reliability, and enhance your compliance management.