One of the main constants within this industry is change –
change in required documentation, change in risk, change is what is perceived
as risky. This is not only a result of regulatory bodies but also on companies
becoming more risk-averse by leading to collecting new data on their
subjects to be able to better evaluate the risk they are on-boarding.
The more we are moving towards a shortened, improved, more
technological means of on-boarding subjects the more data is automatically
being collected on a subject to reduce the probability of on-boarding risk.
This however leads to constantly adding new required data on
compliance teams. Compliance teams within large organisations such as banks and
financial institutions are however limited by the systems that have to be used
to collect data. The older, larger and legacy oriented are the systems such as
core banking systems, CRM’s etc are, the bigger is the challenge of adding new
fields to such systems on a yearly basis. Even if IT would accept such a
process it would be quite a costly and lengthy process. What happens then is
that usually compliance teams collect all this other data in separate documents, PDFs, files etc. leading to
having disparate locations where the data on subjects is residing, some of
which would be digital and some physical.
One can instantly see the obvious problems that the above
approach brings to the table – reliance on physical processes, creating
multiple locations of data on the same subject, no possibility of automation,
higher probability of error, inefficient processes, etc.
What we have done with KYC Portal is created a module that
allows the compliance team (without and development or technical expertise
required) to be able to instantly set the types of entities and for each entity
define the entire dataset of what is collected / expected from such entity. The
system allows the compliance team to be able to set the rules on each field,
the types, create complex types, associate scoring categories and anything that
they would like to start collecting.
This module brings a lot of value to the table since it
allows the compliance teams to be able to centralise all the data collected on
subjects into one central console. This central view is not only beneficial
from an efficiency perspective but it also allows the compliance team to be
able to link workflows and risk to any of the fields collected.