A new approach to fighting financial crime
Using third-party data and automated checks to more effectively tackle financial crime.
It's time for change
UK banks and financially regulated institutions are spending hundreds of millions of pounds every single year fighting financial crime. And yet the scale of the problem is only getting worse. The volume of new businesses incorporated in the UK has more than doubled in the last decade. Many of these businesses have the typologies of potential money-launderers and need to be accurately assessed and verified.
Yet, with financial criminals becoming ever-more sophisticated and the volume of customers to assess ever-growing, how can financial organisations possibly keep pace?
Third-party data and analytics can transform cumbersome manual checks into a slick, automated operation which only requires manual intervention where the data calls for it, dramatically reducing the time, cost and effort financial institutions currently have to spend fighting financial crime.
Is your key challenge:
£70bn
of illegitimate money washes through the UK economy each year.
70%
reduction in manual KYC checks through third-party data and automation.
90%
increase in operational efficiency through automated event-driven reviews.
Balancing effective customer onboarding whilst mitigating risk
The FCA have recently identified challenger banks as a potential target for money-launderers due to their public promise for quick commercial account openings. As an institution focused on rapid onboarding, how do you balance effective KYC checks with exemplary customer experience?
Leveraging third party data sources is key. By cross-referencing the customer’s details with third-party sources, you can quickly source and verify information without burdening the customer, and be confident in the validity of the data provided by the customer. This will help you to more readily assess the customer risk and spot financial crime in a fraction of the time taken by traditional KYC approaches.
But there’s more. The added benefit of this approach means you can set a baseline to continuously and automatically monitor customer risk going forward, laying the groundwork for effective, automated event-driven reviews.
To hear more about the multiple data sources we use to help you identify, validate, and assess customer risk, watch our video:
Mitigating and remediating risk through event-driven reviews
Existing AML regulations calls for periodic KYC reviews to confirm the identity of your customers and categorise their risk. But for banks with hundreds of thousands, if not millions, of customers on their books, these periodic operations are incredibly complex, costly, and time-consuming. Every year, UK banks spend upwards of £100 million conducting KYC remediation programmes.
That's why we created an event-driven model which uses automation to proactively monitor your portfolio for financial risk. The system will only notify and require manual intervention when there has been a change in the data which indicates a potential impact on the customer risk assessment. This means you can reduce manual checks by up to 75% and ensure your teams spend their time focusing on the cases that really need expert attention.
Our approach blends the latest technology, data, and insight to deliver transformative change for existing approaches to KYC.
To understand more about how automated event-driven reviews could dramatically improve your KYC operations watch our video:
Breaking free from remediation: a sustainable way to run KYC
Experian and PwC have joined forces to create a set of capabilities for lenders to assess the scale of the challenge within their portfolio and identify tailored steps to move towards event-driven KYC reviews. By leveraging Experian data, and PwC’s industry and regulatory expertise, we’ve developed a unique partnership which offers market-leading practices, enabled by innovative technology, to help transform existing approaches to KYC.
Read the paper to understand how we can help break the remediation cycle for your organisation
Download nowTransforming financial crime prevention
The transition to automated event-driven, rather than periodic, KYC reviews will be truly transformational for the industry. This approach will dramatically reduce operational costs, drive efficiency, and re-route the attention and expertise of your AML teams to focus on the cases that truly need it. In this paper, we talk about our experience implementing event-driven KYC review to date, and how we could help replicate this process for your organisation.
Download now
How could this capability reduce your OpEx costs?
The key value of the event-driven model is that manual intervention is only required where a change in the customer’s data flags a potential impact to the customer risk assessment. Using industry averages, we’re able to translate how much this would mean for your organisation in OpEx cost-savings.
Try our OpEx cost savings calculator to identify the amount your organisation could save by moving to automated event-driven KYC reviews.
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