Banking and Finance

Verify customers, mitigate risk, and comply with regulatory standards to avoid fraud. Our comprehensive KYC solutions help you strengthen your due diligence practices, protect your business from fraud, and create a secure environment for your operations. Our software is tailored to meet the specific needs of businesses, providing robust features and functionalities that allow you to efficiently manage customer onboarding and ongoing monitoring.

Timing of customer risk rating is essential for effective risk mitigation

The finance industry, in comparison to other sectors, faces a higher susceptibility to fraudulent activities, including a significant rise in instances of data breaches and identity theft. To address and mitigate these unlawful acts, banks must conduct customer risk assessments during the onboarding process. They should employ automated systems that eliminate biased evaluations and instead generate ratings based on Know Your Customer (KYC) information. These automated systems can provide dynamic ratings that are regularly updated to reflect any changes in circumstances. Furthermore, integrating these ratings into transaction monitoring systems allows for the establishment of risk management rules and scenarios. It is imperative for financial institutions to consistently monitor their customers throughout their entire relationship to uphold the security of their financial systems.

Effective Risk Mitigation

Automation can reduce compliance costs for financial institutions

While necessary, the implementation of KYC (Know Your Customer) and AML (Anti-Money Laundering) procedures can impose a significant burden on financial institutions, as evidenced by reports outlining the considerable expenses involved in maintaining compliance. These expenses, which encompass both direct and indirect costs, have sparked concerns regarding banks' ability to efficiently carry out their day-to-day operations. Nevertheless, the utilization of automated technologies presents a viable solution to alleviate the existing pressure on financial institutions and streamline adherence to KYC and AML regulations.

  • The trend of rising compliance costs persists unabated.
  • Expenses associated with meeting compliance obligations continue to steadily increase.
  • The financial burden of satisfying regulatory requirements shows a consistent upward trajectory.
Rising Compliance Costs

The total global spending of financial institutions was $500 million

The top 10% of financial institutions globally accounted for $100 million in total spending

The cost of acquiring customers increased by 19% due to onboarding

Onboarding new clients takes up 1 ½ days of a salesperson's weekly schedule

Risk Assessment clients

When it comes to customer screening, financial institutions typically adopt one of three approaches.

Onboarding: During the onboarding process, financial institutions typically evaluate the risk associated with new customers by utilizing screening software to ask a series of questions. If the customer successfully passes the risk assessment, they are granted access to create an account and conduct transactions.

Ongoing: Financial institutions regularly conduct systematic screening and adhere to a standardized procedure whenever a customer modifies their account details or there are updates to the watch list information.

Real-Time: Financial institutions employ transaction-based screening specifically for certain types of transactions, such as wire transfers, which are initiated by customers. Before the wire transfer leaves the internal system of the financial institution, it undergoes screening against watch lists. Given the critical nature of wire transfers and their potential occurrence at any time, this screening is conducted on an as-needed basis with rapid turnaround times.

Collaboration with fintechs is an imperative for the financial industry to stay relevant

By employing digital identity verification solutions, financial institutions can verify customer information by leveraging data from reliable sources such as credit bureaus and government databases. These systems are capable of distinguishing between customers with extensive credit histories and those with limited ones.

The partnership between banks and Fintech providers empowers banks to modernize their infrastructure and enhance their range of services for customers. Fintech companies bring their expertise to the table, developing tools and services that enable banks to deliver improved digital experiences to their customers. In order to maintain competitiveness, banks need to swiftly and effectively implement these solutions, which aid in the fight against financial fraud and identity theft, while also alleviating the burden of outdated policies associated with KYC and AML compliance.