From network fragmentation to global standardization: Automated KYC for correspondent banking
Correspondent banking is under pressure. Fragmented and manual KYC across multiple parties involved in cross-border payments leads to unnecessary delays and rejected transactions. Corporate clients are demanding change, and digital-first FinTechs are reaping the benefits.
Banks must act now to automate manual KYC processes, standardize procedures and achieve operational efficiencies.
What challenges are correspondent banks facing?
west
east
1
Lack of standardization and jurisdictional variations
Inconsistent standards in the interpretation and application of KYC requirements for different jurisdictions and risk categories leads to risk. When policy changes are required, they can take months to implement.
Manual processes for data and risk management
Manually reconciling data between disparate systems wastes thousands of analyst hours, increases error rates and impacts KYC quality. Getting a unified view of risk is a major challenge.
Lack of uniformity in CDD files
Consistently building and maintaining accurate customer due diligence files by hand is slow, expensive and does not scale. The lack of a uniform approach and output introduces gaps in KYC and risk.
Blacksmith: Purpose-built KYC automation for correspondent banking networks
Leading correspondent banks rely on Blacksmith to standardize and automate disparate KYC processes for more effective risk management and reduced compliance costs. Our dedicated solution for respondent bank KYC enables you to reduce the time spent on CDD by 50%.
With Blacksmith you can:
- digitally managing KYC requirements
- implement AML/CTF regulatory changes fast and consistently
- generate standardized CDD files for all respondent banks
- deliver seamless digital experiences for respondents and end clients
Blacksmith specializes in correspondent banking KYC onboarding and refresh; KYC policy digitization; and automated CDD file generation.
The Blacksmith KYC platform
Digital Policy Manager
A business rules engine that allows you to configure digital and jurisdiction-specific KYC requirements and ensure consistent application throughout the CDD process.
DataHub
Unified API connections to essential correspondent banking data sources for standardized bank information, ownership structures and entity verification:
- SWIFT KYC Registry
- Bankers Almanac
- Bureau van Dijk
- Global corporate registries
CDD File Generator
We generate complete CDD files containing full corporate ownership structures, documentary evidence and source attribution. Automation ensures consistently high-quality output that is customizable to your unique policies and procedures.
Standardized and automated CDD file generation means you are always audit-ready with critical KYC data, insights and evidence.
What do Blacksmith clients say?
“Blacksmith facilitates a more structured approach to KYC; consistency and completeness; and a better–quality output. Blacksmith KYC is a key part of our future roadmap towards delivering a data and technology driven CDD process”.
Anthony Vliet, Head of KYC, ING Wholesale Bank
“With Blacksmith, it doesn’t matter if a KYC analyst has been with the bank for five years or five months… We have entered our KYC policy into Blacksmith and no matter who pushes the button we get the same information, and that is very positive for us”.
Ieva Preisa, KYC Project Manager, SEB
In 2024, Encompass Corporation acquired Blacksmith from ING, combining market-leading KYC automation with comprehensive corporate digital identity capabilities.
Learn more about EC360 and Corporate Digital Identity from Encompass.
Discover corporate digital identity from Encompass