In the ongoing global efforts against money laundering, the task of comprehending customer identities has proven to be a crucial element in Know Your Customer (KYC) compliance for financial establishments over the years. However, the perpetual shift in regulations has augmented the expense and intricacy involved in acquiring and maintaining clients.
In a recent webinar from Fenergo, several industry connoisseurs were brought together to deliberate on the prime areas where financial institutions can optimally tweak the KYC process. This would lead to a reduction in costs, a surge in efficiency and pave the way for a growth strategy.
A key discussion point was the real cost of KYC for financial institutions. Is the monetary and time investment in KYC procedures counterbalanced by the benefits it brings? Or do the costs supersede the advantages, thus calling for a revamp of the system?
The webinar also touched upon the possibility of migrating from data silos to a ‘single source of truth’. Could such a move enhance data accessibility and efficiency, making it easier for institutions to meet their compliance requirements and provide better customer service?
The implications of manual KYC for both client and employee experiences were also explored. Does the manual process affect customer satisfaction and employee productivity? How can institutions mitigate these impacts and enhance the overall experience?
Another key area discussed was the magnitude of the challenge presented by periodic KYC reviews. The question was posed: Could perpetual KYC be the solution? Could this approach help financial institutions to stay ahead of regulatory changes, reduce the compliance burden, and ensure a smoother customer journey?
Watch the webinar here.
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