For fintechs, if customer behavior is constantly changing, so should risk profiles adapt through Ongoing Customer Due Diligence. Perpetual KYC is a way of keeping up with new threats as well as new regulations.
· Risk thresholds
While SARs reports help tackle fraudsters, further action should be taken so that fintechs send a clear message that they will not enter or maintain business relationships in which risks aren’t able to be properly mitigated.
· The high volume of data
Generally speaking compliance, when done right, can effectively be turned into a competitive advantage.
There are certain data sources and activities which require tracking with a high degree of scrutiny, namely:
Lastly, considering taking steps towards KYC remediation might be a change which fundamentally alters risks profiles.
How can perpetual KYC help fintechs?
While SARs reports help tackle fraudsters, further action should be taken so that fintechs send a clear message that they will not enter or maintain business relationships in which risks aren’t able to be properly mitigated.
And while checks are automated, work becomes not only scalable, but also spread out over time, thus alleviating staff’s workload.
· The inherent manual nature of KYC processes
By shifting into an ongoing due diligence approach, these venues can consequently save time and costs while learning much more about their clients.
Accordingly, real time analytical capabilities are key as Ongoing Customer Due Diligence requires fintechs to be prepared to constantly monitor account status as a way of tackling any emerging risk.
Moreover, processes must be drafted in a way which can effectively speed up fintechs’ response to any given scenario.
In fact, there is a known gap between the SARs filed (suspicious activities reports) and actions taken after the fact.
· Trade data
The 3 main pain points are usually:
Deviations from the account’s standard activity are promptly identified which in turn leads to alert triggers. Subsequently staff investigations should take place.
Main Points for Fintechs (and Banks) when dealing with KYC measures?
Deviations from the account’s standard activity are promptly identified which in turn leads to alert triggers. Subsequently staff investigations should take place.
Main Points for Fintechs (and Banks) when dealing with KYC measures?
Perpetual Know Your Customer (KYC), in essence, pushes fintechs to systematically keep reviewing accounts and transactions, but also risks.
It’s important to understand that pinpointing the right threshold which triggers an investigation differs from detecting much more sophisticated patterns which keep fraudsters off the company’s radars.
There are certain data sources and activities which require tracking with a high degree of scrutiny, namely:
· The difficulty in understanding their clients and assessing risk.
Can help fintechs deploy high quality Ongoing Customer Due Diligence measures?
· Status changes
Generally speaking compliance, when done right, can effectively be turned into a competitive advantage.
· Changes made to the account’s information
The process entails a shift in mindset as it no longer becomes a check-the-box measure, rather turns into a holistic view of client data.
As such, fintechs which make OCDD one of their core values will become an example of good governance, something which can easily translates into earning the trust of both clients and investors.
منبع: https://www.financemagnates.com//fintech/perpetual-kyc-in-fintechs-is-it-worth-it/
The 3 main pain points are usually:
By shifting into an ongoing due diligence approach, these venues can consequently save time and costs while learning much more about their clients.
· Suspicious activity
And while checks are automated, work becomes not only scalable, but also spread out over time, thus alleviating staff’s workload.
· Status changes
In fact, there is a known gap between the SARs filed (suspicious activities reports) and actions taken after the fact.
Forward-thinking fintechs will understand precisely how implementing perpetual KYC measures will effectively empower operational efficiency via automated checks while improving customer experience.
For fintechs, if customer behavior is constantly changing, so should risk profiles adapt through Ongoing Customer Due Diligence. Perpetual KYC is a way of keeping up with new threats as well as new regulations.
Perpetual Know Your Customer (KYC), in essence, pushes fintechs to systematically keep reviewing accounts and transactions, but also risks.
Moreover, processes must be drafted in a way which can effectively speed up fintechs’ response to any given scenario.
· Suspicious activity
As much as machine learning and fraud analytics can help fintechs uncover patterns fraudsters might use, fintechs still need to take account that they need to deploy effective countermeasures as these are quintessential in what concerns compliance determinations.
By having perpetual KYC procedures in place fintechs will be empowered to a higher standard of vigilance will unquestionably help in creating a much more transparent organization.
Lastly, considering taking steps towards KYC remediation might be a change which fundamentally alters risks profiles.
How can perpetual KYC help fintechs?
The process entails a shift in mindset as it no longer becomes a check-the-box measure, rather turns into a holistic view of client data.
As such, in terms of OCDD, it becomes crucial that fintechs develop systematic procedures which can give them the ability to follow through on any given red flag.
As such, fintechs which make OCDD one of their core values will become an example of good governance, something which can easily translates into earning the trust of both clients and investors.
