Traditionally, Know Your Customer (KYC) has provided a framework by which organisations can carry out due diligence on existing and potential customers, enabling ratification of issues such as beneficial ownership and identity verification.
This process has evolved over time, from a largely back-office manual function, managed by analysts and administrators, to an increasingly automated one, whereby software can be used to complete KYC within a short space of time.
Digital transformation is rapidly changing the face of due diligence, with many organisations committing to ongoing and digitally enabled data reporting or client onboarding, often facilitated by RegTech. Perpetual KYC (pKYC), an emerging concept in financial crime compliance, is the next step in this evolution.
PKYC is based on the dynamic refresh of customer data in response to key triggering events. It represents an innovative approach to KYC processes in comparison to the more traditional, reactive ways of updating information, which provides financial institutions with an accurate and up to date view of their regulatory risk at all times.
Find out more about the concept of pKYC, and how institutions could realise some of the benefits of it now, in this interview with Nick Ford (VP Strategic Alliances, Encompass) and Chris Laws (VP Product, Strategy and GTM, Dun & Bradstreet).