KYC as an Enabler in the Financial Services Business Transformation
Content of Figures
1 Management Summary
Digital Business Transformation is here now and it will change how businesses compete for many years to come. In the financial services area, Know Yo ...
Login Free 30-day Select Access Get full Access2 Highlights
- FSIs must become customer centric, focus on profitability rather than revenue, and increase operational efficiencies, in order to attract customers ...
3 KYC Digital Transformation Challenges and Regulatory Compliance
Know your customer (KYC) has traditionally been the process of a business verifying their clients for the purposes of preventing identity theft, money ...
Login Free 30-day Select Access Get full Access3.1 KYC
The traditional process of KYC entails identifying the customer and verifying their identity by using reliable and independent documents or informatio ...
Login Free 30-day Select Access Get full Access3.2 Digital Transformation
FSIs must ensure that their IT investments are strategic rather than just tactical to achieve their KYC goals. FSIs need to transform their core tech ...
Login Free 30-day Select Access Get full Access3.3 Transformational Issues
Before embarking upon the KYC transformation journey, FSIs must identify the inhibitors such as siloed environments, inconsistent and varying data qua ...
Login Free 30-day Select Access Get full Access3.3.1 Siloed and Inconsistent Data
Customer data is often spread out among many different systems in a financial enterprise. Some data may be missing, and formats may be incompatible. ...
Login Free 30-day Select Access Get full Access3.3.2 Analytical Insight Issues
The exponential growth of data flowing into FSIs require people with data analytics expertise. McKinsey & Co. estimates that there will be a personne ...
Login Free 30-day Select Access Get full Access3.3.3 Aged Data
Some FSIs are making progress in capturing timely customer data, but slow to distribute this knowledge throughout the enterprise. As a result, critic ...
Login Free 30-day Select Access Get full Access3.3.4 Regulation
The regulatory compliance landscape is frequently evolving, putting additional stress on financial institutions.
Recent events have put greater re ...
As regulatory expectations continue to increase, financial institutions need to be increasingly proactive and efficient in mitigating their Anti-Money ...
Login Free 30-day Select Access Get full Access4 KYC - Digital Transformation – Technical Building Blocks
The journey from Identity Access Management (IAM) to Know Your Customer (KYC) introduces a new step – Customer Identity Access Management (CIAM) – ...
Login Free 30-day Select Access Get full Access4.1 IAM
Identity Access Management (IAM) is defined as a set of business processes, and a supporting infrastructure for the creation, management and use of di ...
Login Free 30-day Select Access Get full Access4.2 CIAM
Consumer Identity and Access Management (CIAM) is a sub-genre of traditional Identity and Access Management (IAM) that has emerged in the last few yea ...
Login Free 30-day Select Access Get full Access4.3 Authentication
PSD2 requires strong authentication for financial transactions.
“1. Member States shall ensure that a payment service provider applies strong c ...
Login Free 30-day Select Access Get full Access4.4 KYC
The Know your Customer (KYC) directive depends upon the elements of the IAM and CIAM. In order to reduce money laundering, cyber-crime, terrorist fin ...
Login Free 30-day Select Access Get full Access5 KYC Key Features and Benefits
KYC is no longer just about client on-boarding, compliance, and regulatory reporting. It is now becoming a key business transformation enabler. It i ...
Login Free 30-day Select Access Get full Access5.1 Competitive Advantage
The greatest market opportunity is in being recognized as unique and of superior value, by a specific customer segment, and for a specific product. T ...
Login Free 30-day Select Access Get full Access5.2 Customer Expectations
Bank customers expect mobile apps with rich feature sets. Customers want a consistent experience, whether via a mobile app, institutional website, or ...
Login Free 30-day Select Access Get full Access5.3 Customer On-Boarding and Knowledge
Client on-boarding is one of the most costly and time-consuming functions burdening global banks. A significant amount of corporate business is lost ...
Login Free 30-day Select Access Get full Access5.4 Regulatory Compliance
Banks are facing some extreme pressures with continued low-rate environments, the pace of regulatory change and arcane, complex infrastructures. Fine ...
Login Free 30-day Select Access Get full Access5.5 Transparency and Omni-Channel Engagement
Transparency across the client journey is essential in addressing the main issues around on-boarding and regulatory changes. FSIs are advised to inve ...
Login Free 30-day Select Access Get full Access5.6 Data Analytics
Data analytics is a range of different analysis tools and strategies used to learn about certain types of business related functions, such as customer ...
Login Free 30-day Select Access Get full Access5.7 Product Innovation and Marketing
With the knowledge-base of customer interaction and predictive analysis, FSIs can leverage this information to make better product decisions. The cha ...
Login Free 30-day Select Access Get full Access5.8 Branch Office Reengineering
Branch Office networks are being downsized and refocused to reduce costs. They are becoming customer service centres to help customers with their fin ...
Login Free 30-day Select Access Get full Access5.9 New Market Opportunities
The marketplace is becoming global, digitised and with a demographic shift. In many developed countries, the working population will decline signific ...
Login Free 30-day Select Access Get full Access5.10 Key Benefits Summary
The following table summarises the benefits of KYC enabled Digital Business Transformation:
Login Free 30-day Select Access Get full Access6 Conclusions and Recommendations
FSIs are now reacting to the need to provide premium customer services. Their infrastructures and business models are generally not geared to this ne ...
Login Free 30-day Select Access Get full AccessEndnotes
- Oracle study “From Overload to Impact: An Industry Scorecard on Big Data Challenges”
- McKinsey & Company, “Big data: The next frontier for innovation, competition, and productivity,” http://www.mckinsey.com/Insights/MGI/Research/Technology_and_Innovation/Big_data_The_next_frontier_for_innovation.
- The International Banker 2016