Keeping close tabs on customers is more than regulatory box-ticking. An effective Know Your Customer (KYC) & Customer Due Diligence (CDD) operation can deliver enhanced productivity, more accurate risk outcomes, major cost savings and a materially improved customer experience.
Know your customer (KYC) and Customer Due Diligence (CDD) are an essential part of any business’s armoury. And yet, despite heavy investment, many organisations still suffer serious operational issues, hampering their ability to carry out these functions in a streamlined, timely and cost-effective way.
KPMG’s experience of working with clients around the globe identifies the same challenges occuring time and again:
These shortcomings have damaging repercussions. They can result in low quality financial crime decision-making, costly remediation and regulatory fines, impaired customer experience, reputational damage – and a lost opportunity for the good of society as a whole in the fight against against financial crime.
KYC/CDD is a complex task to execute effectively. The diverse nature of the challenge explains why so many businesses have had so little success in tackling it: they simply don’t know where to start or how their challenges are related.
KPMG’s KYC/CDD Navigator solution answers that by taking a holistic approach. It highlights the challenges your KYC/CDD function faces and helps pinpoint opportunities for solving them in a simple and structured way.
Developed as an overarching framework, it can assess your entire KYC/CDD operation, helping you quickly understand the maturity level of your current operating model and where improvements can be introduced. Data-model driven solutions are key here, but so too are a host of other lenses, such as the interpretation and execution of policy and people-related issues.
The KYC/CDD navigator brings together insights and experience that KPMG has gained from numerous CDD client engagements, based on defined benchmark standards and industry-wide knowledge of CDD maturity.
The KYC/CDD navigator rapidly tells you how your organisation measures up across the four main components of CDD:
The process starts with a maturity assessment to highlight any gaps in your CDD function, measured against industry standards, and then provide a view of your issues and opportunities.
Next comes tailored diagnostics. This is a deep dive analysis in priority areas such as a policy lineage review, structured analysis to understand the links between policy/business rules and underlying data and technology, or customer experience diagnostics to map out where the customer journey needs to be improved.
The final stage is a detailed transformational roadmap, including a full set of improvement opportunities, or a business case and transformation plan. Data-model driven solutions are at the heart of this, such as data aggregation, intelligent automation and integrated technology.
Clients who have already used the KYC/CDD navigator point to a range of benefits to their business, once the improvements recommended have been put in place:
The KPMG KYC/CDD navigator is a simple and effective approach to a highly complex – and costly – challenge.
If you would like more information on how to optimise your KYC/CDD business operations, enhance the customer and employee experience and improve your risk management and financial crime compliance, please get in touch with Warren Dunn.