Remediation has become a near-permanent activity for many financial institutions with product mis-selling, service failures, systems outages and degraded record keeping (e.g. KYC / CDD files) all creating demand.
KPMG believes levels of remediation could rise even further in 2021, fuelled in part by COVID-19:
We also expect to see a steady stream of service breakdowns requiring rectification. Key issues may include:
Increased product-specific remediation may also be on the horizon in areas such as interest only mortgages, early redemption charges on advised sales of mortgages and credit card customers with persistent debt.
Many institutions will also need to process the tail of PPI cases at the same time.
Given these dynamics, the imperative to execute remediation accurately, quickly and cost-effectively will be more acute than ever.
KPMG can work with you across the remediation lifecycle:
We can deploy KPMG’s unique risk assessment and diagnostic tools to evaluate the effectiveness of your operations in mitigating Conduct and Financial Crime risks. We identify emerging issues and define effective approaches to resolving them, reducing the likelihood of financially costly and reputationally damaging downstream remediation.
Sometimes, remediation is unavoidable. KPMG has multiple delivery models and can define a remediation solution which is tailored to your needs:
Our Managed Services function provides comprehensive, outsourced remediation solutions. We can operate at the scale your remediation requires, with the ability to deploy large teams of 100+ FTE in an onshore/offshore and nearshore capacity. We can work by remote-accessing your technology or by taking your data into our own secure environment; increasingly, our use of leading-edge remediation technology and data analytics is enabling us to drive up case quality and productivity and reduce both cost and headcount requirement.
Our Managed Services engagements typically adopt the following high-level process:
If your preference is to conduct remediation activity in-house, we can provide a full range of services to help you design, build and deliver an effective remediation operation. Areas in which we typically help our clients include:
We go beyond remediation, working with our clients to identify the root cause issues which led to the need for remediation and to design and deliver sustainable enhancements to business-as-usual operations to reduce significantly the likelihood of the same / similar issues recurring.
We can also conduct assurance testing of post-remediation transformation activity you have conducted to assess its effectiveness in addressing root cause issues.