Share and share alike: Meeting compliance needs together with a KYC utility

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December 2015

Growing support for Know Your Customer utilities

Maintaining the same business-as-usual environment to comply with KYC requirements is no longer good enough. In response to regulatory requirements and the need to drive operational efficiencies, financial institutions are starting to take a closer, but cautious, look at several new utilities that focus on KYC processes. Let’s explore the factors that financial institutions should consider when choosing a KYC utility1.

Centralizing the collection of customer information into a common repository that's accessible to participating financial institutions eliminates duplicative KYC activities across the industry. This can yield significant cost efficiencies, improve customer service, allow for earlier revenue recognition, and increase standardization of KYC quality and compliance.

1 A Know Your Customer (KYC) utility is a central repository that stores the data and documents required to support a financial institution’s KYC procedures. Once a customer’s data has been entered into a utility, member financial institutions can access and leverage the information for their own individual KYC requirements.

Choosing a KYC utility

Many financial institutions see real benefit in engaging with one of the several KYC utilities, regardless of the type. As such, they've started strategic and tactical analysis regarding the use of these services. We’ll explore the numerous factors to consider when choosing a KYC utility.

We recommend that financial institutions consider the following before going into business with a KYC utility:

  • The regulatory impact
  • Any legal implications of using a KYC utility
  • How operations will need to change
  • The governance and engagement model
  • The selection of the most appropriate KYC utility or utilities
  • Technology integration

An agile, cost-effective model

In an environment where financial institutions need an agile, cost-effective KYC service model, KYC utilities provide a viable solution. Using a KYC utility to perform some of the KYC processes enables financial institutions to get back to business, which is about knowing—and thus, being able to sell to—their customers.

Contact us

Michael Savelloni

Principal, PwC US

Tel: +1 (646) 471 6444

Richard Major

Partner, PwC US

Tel: +44 (0) 20 7212 6279

Jeff Lavine

Anti-money Laundering and Sanctions Leader, PwC US

Tel: +1 (703) 918 1379

Damian Kalinowski

Partner, PwC Poland

Tel: +48 519 507 197

Mark Highton

Managing Director, PwC US

Tel: +1 (203) 721 0219

Kathryn Westmore

Senior Manager, PwC United Kingdom

Tel: +44 (0) 20 7213 2941

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