Ensuring your firm has robust Know Your Customer (KYC) and Identity Verification (IDV) tools in place has never been more important, as businesses and customers alike navigate the challenges of the new world we find ourselves in, where face-to-face interactions are almost impossible.
Facilitating customers’ access to the critical support they require to keep their business, and lives, operating – particularly as opportunistic criminals look to take advantage of gaps in programmes – requires fast, efficient and now purely digital KYC and IDV processes, meaning maximising regtech platforms is now front of mind for many.
But how can organisations ensure they are making the most of what is available? That’s what we asked in our latest webinar, as Encompass’ EVP, Global Head of Sales & Customer Success, Ed Lloyd, was joined by Gus Tomlinson, General Manager Identity Fraud, GBG Group and Jonathan Holman, who is Head of Digital Transformation at Santander
During the discussion, which you can watch in full here, they explored:
To set the scene, we delved into how the KYC landscape is evolving. As we know, regulated firms are required to facilitate access to the all important support that their customers require. For them, this presents a challenge, not least because of the sophisticated methods used within financial crime – especially at this pressured time, when teams are working apart.
This is where regtech comes in, as it is central to shoring up programmes and ensuring effective measures.
Given the push towards digital onboarding, a key part of the webinar was Gus’ insight into the importance of digital IDV.
As she explained, digital IDV, is “not a new thing” but, as the climate has changed and the impact has become clearer, its value has become “incredibly heightened”.
According to Gus, the importance of digital IDV can be brought back to three topics:
In a digital world, time is one of our most precious commodities. You need to be able to transact online quickly knowing it’s going to be safe and secure. So, by getting the right digital IDV solution in place, you can make sure you’re balancing everything you need to do to meet regulations and prevent fraud while making sure you’re giving time back to your customers.
What digital IDV needs to enable in that digital onboarding journey is the ability to adapt to the regulatory landscape, making sure that customers are on top of regulations.
We’re in the era of industrialising fraud… Digital IDV must layer technology with technology to make sure fraud is being stopped at the front door.
Why is it more important now than ever before that organisations see KYC differently? That was explained as Ed told us about the challenges associated with traditional KYC processes, with some of these being:
Calculating who owns complex structures and envidencing them brings a whole level of calculation analysts struggle with. We typically see a 10% human error rate… Ultimately, they’re doing business with structures they don’t know.
Your clients don’t like the outreach process and the main impact is the cost it brings to your business in people time.
Regtech solutions can help individuals and businesses avoid many of these issues, bringing an element of control, efficiency and productivity that would otherwise not be seen.
Someone who can speak to this is Jonathan Holman, from Santander. He joined the webinar to provide an insight into the benefits that embarking on a KYC digital transformation journey has brought to his team, and reflecting on some of the outcomes, he said:
We’ve got our cycle time down from a mean of 12 days to two days… 80% of the effort in onboarding is removed instantly… [We’ve seen] Lots of efficiencies across the process and all of that creates a more elegant and speedier customer process.
Encompass’ intelligent process automation conducts live document and data collection, analysis and integration from public and premium sources to bring transparency to complex corporate structures and ultimate beneficial ownership, delivering the most accurate and complete KYC on demand.