How Intelligent Automation in Banking Can Streamline AML & KYC Without a reliable, robust automation solution in place, data will remain trapped in unstructured formats and legacy systems, unable to be accessed for risk management and fraud prevention. Simply put, more human resources and outdated technology can’t keep up with the ever-changing compliance requirements.
One incorrect data point has far-reaching consequences such as being marked regulatory non-compliant.įinancial institutions and their employees need reliable access to data for further downstream processing, risk assessment, and ongoing due diligence checks. 31% of compliance decision-makers list false positives as the greatest operational challenge related to AML. Multiple banking teams interacting with clients at various stages of the onboarding process increases the likelihood of costly clerical errors. This forces banks into a reactive position when responding to customer requests or security flags. alone, AML compliance staff has increased tenfold in the last five years.Īs a result, AML and KYC due diligence processes remain extremely decentralized and expensive. To fill in processing gaps where legacy tech systems fall short, banks are adding more people to their teams. The bottom line is that banks are spending hundreds of millions to maintain the processes and systems they built.
KYC INTELLIGENT RISK ENGINE MANUAL
These solutions help organizations parse through vast amounts of unstructured data, reducing manual work and freeing up resources for enhanced decision-making.Ĭommercial & Retail Bank Customer Onboarding Many enterprises are transforming their back-office operations with intelligent automation solutions. More importantly, it does so with high degrees of reliability and accuracy. Intelligent automation merges Artificial Intelligence, Machine Learning, and related automation technologies to help companies streamline complex processes and achieve greater efficiency. Since 2008, financial institutions have paid more than $36 billion in fines for noncompliance regarding anti-money laundering (AML), know your customer (KYC), and sanctions regulations. If data isn’t accurate, complete, and readily available across a bank organization, the consequences can be catastrophic. Manual entry also increases the likelihood of clerical errors, impeding a firm’s ability to ensure a single source of truth. The current processes add further operational complexity and limit a firm’s ability to grow and scale. Existing, legacy approaches to completing due diligence and ensuring compliance are slow, expensive, and error-prone. These processes require organizations and their employees to classify and extract large amounts of sensitive customer information from proof of identification documents (such as a passport or driver’s license), proof of address forms (like a utility or rent bill), invoices, and other diverse forms and images. Historically, banks have used a combination of legacy technology and increased headcount to complete due diligence-related onboarding processes like anti-money laundering (AML) and know your customer (KYC). Using intelligent automation in bank customer onboarding can help mitigate risks and reduce the costs associated with manual processing in a highly-regulated industry. One of the many benefits of automation in financial services is how it can help banks fulfil CDD checks. When it comes to completing Customer Due Diligence (CDD), financial institutions can’t afford to compromise on accuracy.
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