Encompass Corporation, a leading provider of KYC automation platforms, has unveiled a perpetual Know Your Customer (pKYC) maturity model to set a new benchmark for regulatory compliance. The model is designed to evaluate the maturity and readiness of financial institutions to identify and prevent financial crime, thus reducing risk. Encompass’s pKYC Advisory Board, which comprises representatives from major global banks and a select group of trusted partners, created the model. In addition, Encompass released an industry whitepaper titled “Planning your journey to perpetual KYC” to help banks achieve the dream state of pKYC. Banks should aim to quickly and accurately identify financial crime by checking customer risk data changes in near real-time. Institutions must build their technology infrastructure continually to automate core processes and achieve true pKYC. Those who have advanced in digital transformation can keep up with the regulatory landscape and protect themselves and society against financial crime.
Encompass Corporation, the provider of the leading Know Your Customer (KYC) automation platform, has introduced a perpetual Know Your Customer (pKYC) maturity model. The model aims to establish a new benchmark for regulatory compliance, enabling banks to identify financial crime with improved speed and accuracy and reduce risk. The pKYC Advisory Board, which includes representatives from major global banks and selected data, technology, and consulting partners, created the model. It is designed to help financial institutions assess their maturity and readiness to prevent financial crime by placing their financial systems into a pKYC framework.
Many prominent players in the banking industry consider pKYC a “dream state” as it uses automation technology to detect risks faster and more accurately, thereby increasing operational efficiency without the need for additional headcount or time commitment. Currently, financial institutions typically re-assess customer data at intervals of one, three, or five years for high, medium, and low-risk customers, respectively. This practice opens the door for activity to go unnoticed for long periods.
The pKYC model evaluates financial institutions based on five core areas: Policy, People, Process, Data, and Technology. These factors are then divided into subcategories and assigned a necessity against the four stages of KYC: Manual KYC, Early Automation, Mature Automation, or pKYC, to benchmark readiness for pKYC. With this model, Encompass is helping banks assess their preparedness for pKYC, enabling stakeholder discussions and evaluating transformation journeys’ progress. The company offers advice and technology solutions to fast-track the process.
Howard Wimpory, KYC Transformation Director for Encompass, said that financial institutions need to know where they stand regarding compliance, given the stricter regulatory landscape, increasing fines, and enforcement actions. Manual processes allow financial risks to go unnoticed for long periods, making it crucial to review processes and adopt automation technology.
Banks should aim to quickly and accurately identify financial crime by checking customer risk data changes in near real-time. Institutions must build their technology infrastructure to automate core processes continually to achieve true pKYC. Those who have advanced in digital transformation can keep up with the regulatory landscape and protect themselves and society against financial crime.
Encompass has also released an industry whitepaper titled “Planning your journey to perpetual KYC,” which provides a detailed explanation of pKYC and its core components, helping banks achieve the “dream state” of pKYC.
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