Encompass survey gets to the heart of KYC onboarding challenges

by | Aug 22, 2019 | All Blog Posts, Featured

Global financial services firms have many priorities and have to negotiate a range of challenges as they strive to provide the best service in today’s fast-paced environment.
When taking a deeper look at these challenges, no area is more pertinent than Know Your Customer (KYC) and customer due diligence.

An increase in regulation is adding a degree of complexity to customer due diligence requirements and it has become clear that teams are struggling to manage ever-changing rules while keeping up with various responsibilities.

In an effort to bring real change to KYC processes that make an impact to those in the industry, Encompass conducted a survey questioning onboarding and compliance professionals about the challenges they come up against in their day-to-day roles.

While more than half of all respondents operate within compliance, others who work across the associated industries, in areas such as business development and front office, also provided insight into their jobs, the customer groups that they target and the way in which they approach onboarding new clients.

the results

Delving into subjects including the level of ease with which current processes allow KYC to be performed when onboarding, the most common challenges professionals come up against when performing KYC and their use of automation to overcome these, the survey bracketed customer types into large corporates, mid-market, SME and individuals/sole traders.

Those who responded shared that mid-market proves most difficult to navigate in terms of KYC tasks and onboarding, with 48 per cent rating the process for these customers as challenging. In contrast, when questioned on dealing with sole traders/individuals, only 29 per cent found this aspect to be challenging.

The research gives an overview of needs and issues to be tackled in order for these processes to be more effectively carried out, with the increased reliance on automation evident, as many are found to be currently utilising it in their onboarding processes, or considering doing so in the future.

what challenges do you face when performing KYC?

%

Customer outreach to gather relevant documents

%

Unwrapping corporate structures

%

Identifying beneficial ownership
Key findings include:

  • the top three challenges when performing KYC are; customer outreach [80 per cent], identifying beneficial ownership [59 per cent] and unwrapping corporate structures [57 per cent]
  • almost a third of respondents are using 3+ registries [28 per cent] and sources of business information [30 per cent] to onboard a customer
  • 81 per cent of respondents say they face some or significant challenges in ensuring consistency in data gathering across their business
  • more than half are Implementing customer onboarding technology in an effort to deal with the challenges they find, while 52 per cent are already automating manual processes with a considerable proportion planning to do so in the next 12 months
seminar

augmenting customer due diligence

the importance of a connected approach to data and technology

Do these insights reflect what is going on in your business, and what changes are we likely to see? Encompass and Dun & Bradstreet will be hosting a roundtable seminar on Thursday 19 September, where the key themes will be discussed, as we explore:

  • the impact of evolving regulation on compliance teams
  • top common challenges and priorities over the coming months
  • benefits of intelligent automation for customer due diligence
  • how technology and data combined can be a powerful strategic driver

Book your place here.

about encompass

Founded in 2012 by entrepreneurs Roger Carson and Wayne Johnson, Encompass is the creator of unique, innovative Know Your Customer (KYC) automation software that enables better, faster commercial decisions. The company is driven by the belief that the best decisions are made when people understand the full picture, fast.

want to turn regulatory compliance
in to a competitive advantage?

Contact us today to arrange your personalised consultation of Encompass. Discover how our KYC automation software can help your business accelerate onboarding and give you peace of mind that you are regulator ready.