Transform KYC data chaos into business opportunity

Corporate banks face mounting pressure to streamline operations while complying with increasingly complex regulations.

Yet, inefficient KYC data management practices and outdated workflows hinder progress. Despite the influx of data, banks struggle to convert it into a valuable business asset.

The cost of inefficient data management

Corporate banks spend $12.7 billion annually on customer due diligence (CDD), yet much of this is wasted due to poor data strategies. Fragmented, redundant, and inconsistent data drains resources, leaving compliance teams to focus on administrative tasks rather than risk management. With 83% of compliance budgets going into labor-intensive workflows, slow decision-making becomes inevitable, further exacerbating inefficiencies.

The opportunity: Reimagining KYC data chaos

Rather than viewing KYC as a compliance burden, banks can transform it into a growth driver by adopting smarter data strategies. Corporate Digital Identity (CDI) is central to this transformation. By creating a unified digital identity for each corporate client, banks can streamline data collection, reduce redundancies, and improve risk management. All while speeding up onboarding.

Addressing KYC data chaos and overload

Banks face a paradox: the more data they accumulate, the harder it becomes to extract actionable insights. Fragmented data sources, each with different formats and update cycles, create KYC data chaos. Additionally, regulatory demands for continuous risk monitoring require KYC models to integrate dynamic, real-time data. The absence of global data standards adds to these challenges, preventing informed decision-making.

KYC data workflows

Banks must shift from collecting excessive amounts of data to focusing on high-value, risk-relevant data. A robust KYC data framework should include:

1.  Precision over volume: Prioritize risk-relevant data to reduce onboarding times and increase confidence in risk assessments.
2. Global data standards: Adopt standardized data formats to enhance consistency and improve cross-jurisdictional risk assessments.
3. Real-time decision-making: Use API-driven platforms for continuous monitoring and dynamic risk assessment.
4. Single source of truth: Leverage CDI to ensure consistent, up-to-date data across departments and reduce redundant data purchases.

The role of EC360 in powering CDI

The Encompass EC360 platform helps banks orchestrate public and private data, ensuring it’s validated, structured, and updated in real-time. With EC360, banks can transition from fragmented processes to fully automated, intelligence-driven compliance, enabling:

• Real-time data orchestration: Dynamic updates to risk assessments and continuous monitoring.
• Streamlined workflows: A “buy once, use many” model reduces redundant purchases and operational waste.
• Transparency and confidence: Track data lineage to build trust in entity data.

Turning data into growth

KYC should no longer be seen solely as a compliance obligation but as a strategic asset. By adopting CDI, banks can proactively manage risk, accelerate client acquisition, and reduce costs. With a real-time, structured view of entity data, banks can make smarter decisions that drive growth and improve client satisfaction.

The future of KYC is a seamless, intelligent compliance framework where data becomes an asset. Those who embrace CDI will set the standard for efficiency, accuracy, and innovation in corporate banking, transforming data overload into strategic advantage.