The Future of KYC Compliance is already underway
21 Apr, 2021 23:37
source: Know Your Customer
In 2020, a series of trends that had been in the making for years, combined with the unprecedented circumstances brought about by the coronavirus pandemic, culminated in structural changes in the overall KYC compliance function at financial institutions in Asia Pacific and around the world. This colossal shift, far from being over, is bound to shape the face of the sector for at least the next decade.
Relevant factors driving the change include:
A new way of working
As compliance teams had to perform all their functions remotely, relying on RegTech solutions enabled organisations to ensure uninterrupted provision of services without sacrificing on compliance. For companies that have embraced new automated technologies, going back to manual and inefficient processes is not an option.
Changing regulatory requirements
Pressured by the industry, central banks and financial regulators replaced diffidence with encouragement regarding RegTech adoption. The Financial Action Task Force (FATF)’s official recommendations to promote RegTech solutions for digital onboarding in April 2020 were a key turning point in this sense, followed by numerous local initiatives such as the HKMA’s white paper to promote RegTech adoption in November 2020.
Customer expectations of digital experiences
Aware of the convenience and ease of use offered by many FinTech providers, customers of financial services have new expectations. During the COVID-19 pandemic, even more aspects of our daily lives have moved online, making seamless digital experiences a “must have” across sectors. In this new environment, customer-centric onboarding journeys have become a top priority for financial institutions looking to stay relevant in a fast-changing market.
Download this white paper from Know Your Customer to explore in detail the causes of the current changes, discover what the KYC compliance of the future may look like and unveil the elements of a successful digital KYC implementation.
The future of KYC compliance, changing financial regulations and the rise of RegTech are also the topics at the centre of RegTalks, a new interview podcast hosted by Know Your Customer’s CEO & Co-founder Claus Christensen. Tune in for insightful conversations with finance and technology experts from around the world.