Why corporate banks should automate their KYC processes

Corporate banks face a delicate balancing act – meeting stringent regulatory requirements while delivering a seamless client experience.

However, outdated Know Your Customer (KYC) processes for corporate clients continue to be a major obstacle. Unlike the streamlined consumer experience, corporate KYC is often associated with onboarding delays, inefficiencies, and client frustration

On the flip side, a transformative shift is being seen with the automation of KYC public data collation. A solution that redefines how client data is gathered. By automating KYC public data collation and KYC workflows, efficiencies can quickly be unlocked. Furthermore, risk management can be strengthened, and banks can position themselves as leaders in a highly competitive market.

The limitations of manual KYC

Manual KYC processes have long been associated with significant costs and inefficiencies. A recent study revealed that an average Tier 1 bank spends 4.5 times more on manual customer due diligence (CDD) and KYC processes than on technology and solutions to automate these.

Identifying and verifying client identities typically requires substantial human resources, while fragmented systems complicate the consolidation of data. Without automation, errors and delays are more likely, along with increased risks of non-compliance as regulations continue to evolve.

Onboarding delays caused by manual processes often leave clients dissatisfied. According to research 73% of corporate treasurers cite inefficiencies as a primary concern. Such frustrations may prompt clients to explore alternative banking relationships, adding to the challenges already faced by banks.

Fast, frictionless KYC public data collation

A major leap forward has been enabled by EC Public Automation, powered by the EC360 platform. This solution has revolutionized KYC processes for banks by automating the collection and integration of real-time public data and documents. Inefficiencies are eliminated, and onboarding is accelerated as the platform connects to KYC data providers. Furthermore, sourcing, matching, and merging data to perform entity resolution and create comprehensive client profiles. These profiles are seamlessly integrated into internal systems, allowing banks to reduce costs, improve compliance, and enhance client satisfaction.

The platform incorporates advanced features, including Intelligent Document Processing (IDP), which uses generative AI to extract critical data from complex documents. Data normalization and standardization streamline ingestion, while corporate structure mapping provides insights into ownership hierarchies. Beneficial and non-beneficial shareholdings are analyzed, and Ultimate Beneficial Owner (UBO) discovery tools offer transparency into complex ownership structures.

Transforming compliance with automation

By automating KYC workflows, substantial cost reductions are achieved. As a result, compliance is bolstered as automated processes minimize errors and create an auditable trail of every action taken. A comprehensive audit trail, along with the inclusion of original source documents and full data provenance within client profiles, is essential for demonstrating compliance and ensuring transparency.

Moreover, real-time data collation accelerates processes, enabling faster client onboarding while delivering an enhanced client experience. To further strengthen compliance and efficiency, consistency and standardization are enforced through automation rules, reducing variability in decision-making and ensuring regulatory alignment.

EC Public Automation also supports Perpetual KYC (pKYC) programs, ensuring continuous client risk insights and proactive compliance management. With access to over 175 data products across 200+ jurisdictions, including corporate registries, regulatory filings, and stock exchange data, the platform provides reliable, accurate information tailored to diverse regulatory environments as per each bank’s individual requirements.

Enhancing integration and security

The digital profiles created by EC Public Automation are designed for seamless integration with Client Lifecycle Management (CLM) systems via an Application Programming Interface (API). This ensures that client data flows effortlessly between systems, allowing banks to maintain an accurate and up-to-date view of their clients. In addition, the platform’s secure, cloud-based architecture complies with ISO 27001 and SOC 2 Type 1 standards, providing robust security and full auditability.

A future-focused approach to KYC public data collation

Automating KYC public data collation is no longer a luxury. It is a necessity for corporate banks looking to stay competitive and scale efficiently. By leveraging solutions like EC Public Automation, banks can reduce costs, improve compliance, and deliver a faster, frictionless onboarding experience at scale.

Automation not only streamlines operations but also ensures that KYC processes can grow alongside the bank’s expanding client base. By transforming KYC from a compliance obligation into a strategic advantage, banks can enhance efficiency today, while building a foundation for future growth.