KYC Portal Founder & CEO, Kristoff Zammit Ciantar contributed as a leading expert on the topic "Key things to look for when you are buying a KYC solution" in the Global RegTech Buyer's Guide 2021 issued by RegTech Analyst and FinTech Global.
The importance of firms implementing a strong KYC process is clear and there has been no shortage of regulatory technology companies looking to offer support. However, there is a lot of confusion around what a KYC solution should actually offer. The specific term “KYC Solution” tends to be wrongly associated to the third-party databases available globally to check if the customer is a politically exposed person, is on a sanction list or else linked to any adverse media. However, the process of KYC is much broader.
The most important aspect of any KYC solution is that it should cover the entire spectrum of the due diligence process, a tool that centralises the entire lifecycle of KYC starting from the onboarding process all throughout the ongoing review process. Having a centralised solution for the entire process gives a lot of advantages to the business, leading to the decrease in risk and costs.
Why implement a KYC solution?
Whilst the financial market has been slow to adopt technology, it has picked up a lot of momentum over the past year. The coronavirus has put pressures on firms to adopt technology in order to survive. They need to keep up with the changing customer expectations that now demand for online services. They also need to ensure their employees can work from home in a compliant manner.
The reason to implement a KYC solution is not simply down to digitising. This question is subjective as it depends on the remit that the firm in question has in mind. Some clients buy a KYC solution for streamlining the back-office process of due diligence in order to reduce the reliance on manual processes. Others buy such systems to be able to digitise the onboarding process. Some for remediation purposes, whilst others purely to automate risk across all their subjects. Irrespective of the remit however, the ultimate goal of adopting a digitised KYC solution is that of reducing cost and risk at the same time. Reducing cost as you are reducing the reliance on manual processes and tasks and reducing the risk exposure of the company to the day that risk happens thanks to the centralised, real-time risk engine on all subjects.
Finding the right solution
The one common aspect of such technologies, is the term “regulatory”, which is all based on regulations. As we know, regulations are constantly evolving, be it due to new money laundering directives or internal policy, regulations are constantly being updated. Due to this, the most important element of any RegTech solution is the ability to be in full control, by being able to tweak and change the configuration of the technology in question seamlessly, in order to keep up with such changes.
Coronavirus and beyond
The Covid-19 pandemic has changed the world as we know it. While the world will return to some form of normality, there are a lot of things that have changed thanks to the pandemic and will likely continue that way long after the pandemic is over. As for how the pandemic has changed the dynamic of buying a solution, it has impacted both the nature of how companies buy as well as the reason for buying. Pre-Covid-19 as a company we used to get most of our leads through the regular attendance of conferences on a global scale. Most of the audience at such conferences represented a variety of clients across industries approaching us and asking for more details leading to lead generation. Due to the fact that conferences are no longer happening, we have seen a spike in activity on our online presence and a larger number of requests happening directly via online means. It is hard to tell what the future holds, but this way of lead generation could continue post pandemic.
The Guide is the essential information source on the global RegTech market and supplier ecosystem for all financial institutions that need to enhance or transform their compliance, risk management and data securities operations. It was produced based on feedback from subscribers to the FinTech Global and RegTech Analyst databases and financial institutions from our network, who expressed concerns about the rapidly increasing costs, information and range of technologies available when purchasing or implementing RegTech solutions. The insights, case studies and company profiles in the Guide will help senior management and compliance professionals ensure their due diligence process and engagement with new RegTech suppliers are exhaustive, well-structured and minimise reputational and non-compliance risks.
#RegTechBuyersGuide #kycportal #casestudy #insightarticle #regtech #onboarding #compliance #fintech #digitaltransformation #covid19