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How to build automation into your KYC due diligence process with Encompass

By Chris J. Arthur-Collins | Wed 5 January, 2022
How to build automation into your KYC due diligence process with Encompass | Encompass blog

For forward-thinking organizations, automating key KYC due diligence activities is a top priority.

The resources involved in manual compliance processes and the risk of errors and fines for regulatory breaches are key drivers for implementing digital KYC solutions. We outline how you can build automation into your KYC due diligence process effectively with Encompass.

Automation tools offer significant long-term benefits for compliance, efficiency and profitability, but you need to prioritize the right areas to automate to deliver the best ROI. Let’s explore how to take a strategic approach to KYC automation.

Leveraging automation to transform the KYC due diligence process

In the increasingly complex and competitive financial landscape, new regulations have resulted in higher costs, increased workloads and the ever-present risk of AML compliance breaches due to process mistakes, resource scarcity or human error.

Applied correctly, automation of critical KYC due diligence process steps with RegTech solutions frees resources from repetitive, manual tasks and creates significant time-savings to apply reasoning and analysis, on the tasks that matter most. In many cases, this leads to better decisions and decreased risk.

Organizations leveraging these tools can reduce costs and risk, while improving customer experience and speed of service. However, poor implementation can damage service levels and waste time and resources.

Understanding the level of automaton that can be achieved

Given the complex nature of AML compliance and customer due diligence activities, it’s important to recognize the limitations of technology. Automation is not an overnight solution you can just switch on and walk away. It’s an iterative process and you won’t be able to achieve a fully automated KYC due diligence process – there will always be certain things requiring manual input.

The scope and number of processes that can be automated will depend on your goals, policies, region, what you’re trying to achieve, and other factors. Typically you can expect the following:

  • 40% of processes can be automated straight away
  • 30% will require additional process mapping and automation programing
  • the remaining 30% of processes still need some form of human intervention, but automation will be able to enhance and optimize activities

The advantages of using Encompass’ KYC automation platform | Encompass blog

The advantages of using Encompass’ KYC automation platform

Encompass is a market leader in KYC and AML compliance solutions, using intelligent process automation to enable rapid retrieval and integration of data and documents for AML and KYC requirements without the need for human intervention.

Our KYC automation platform is designed to address key issues banks face when onboarding corporate clients and trying to remain compliant with AML regulations.

What parts of the KYC due diligence process can Encompass automate?

Automating complex and time-consuming due diligence tasks improves customer experience and efficiency, while reducing the risks of human error and non-compliance. Here are the key parts of the KYC due diligence process Encompass can enhance with automation.

1. Automating corporate data gathering

Encompass integrates directly with public and premium data sources, giving you access to more industry-leading KYC data providers than any other solution. With live API connections, institutions can gather customer due diligence (CDD) and enhanced due diligence (EDD) information in seconds, based on existing policies and risk profiles.

2. Verifying customer information and identity

By connecting to global corporate registries and electronic identity verification, you can automate customer checks with peace of mind. Encompass offers advanced imaging algorithms to enable users to authenticate an official identity document and conduct biometric checks against the person being onboarded, in addition to conducting bureau checks for further validation.

3. Identifying ultimate beneficial owners

Encompass uses automated database searches to unwind and collate complex Ultimate Beneficial Ownership (UBO) structures in seconds, providing comprehensive visualization in less than 120 seconds.

4. PEPs, sanctions and adverse media screening

Minimize financial risk exposure and enhance efficiency by using Encompass to automatically screen entities against preferred suppliers of PEP, sanctions and adverse media data.

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5. Monitoring for changes in customer risk profiles

KYC remediation and ongoing monitoring for AML can be a significant drain on compliance teams’ resources. Encompass uses smart systems to continuously monitor customer KYC profiles for material changes and instantly catch opportunities for information review and updating.

6. Dynamic creation of a full audit trail

Using Encompass, teams can prove end-to-end compliance to regulators with a dynamic audit trail of every KYC/AML action for real-time updates based on live profiles.

See how the Encompass platform works for more information about the path to an automated KYC due diligence process.

How it works

Empower your automation journey with Encompass

In the evolving regulatory space, technology capabilities are a key differentiator. Businesses that implement modern KYC tools effectively will enjoy lower costs, increased scalability and improved customer retention, while others will fall behind and be at great risk of compliance issues.

Encompass works with financial institutions all over the world to optimize their KYC due diligence process with smart automation, helping them to stay ahead of the curve, appease regulators and gain a competitive advantage. With greater process control, visibility and efficiency, our solutions can save up to 98% of the time spent on KYC data retrieval and collation by analysts.

If you’d like more details or to discuss a potential project, get in touch with Encompass. Or if you’re keen to kick-start your automation journey, request a dedicated platform demo to see how you can unlock efficiencies in your compliance workflow.


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