Encompass Corporation, a provider of a KYC automation platform, has unveiled its perpetual KYC maturity model.
Encompass claims that the launch of this model ‘sets a new benchmark for regulatory compliance to support the fight against financial crime’.
The model – which was devised by the pKYC Advisory Board – comprised of representatives from leading global banks and a selected group of trusted data, tech and consulting partners, is designed to place financial systems into a pKYC framework to evaluate their maturity and readiness to more effectively identify and prevent financial crime.
The framework evaluates financial institutions on five core areas – these include policy, people, process, data and technology. These factors are then broken down into subcategories and attributed 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 claims it is helping banks consider preparedness for pKYC, facilitate stakeholder discussions and evaluate the progress of transformation journeys, offering advice and technology solutions to fast-track the process.
Encompass KYC transformation director Howard Wimpory said, “Against the backdrop of a more stringent regulatory landscape, and increasing fines and enforcement actions, it is more important than ever for financial institutions to know where they stand regarding compliance. Manual processes allow financial risks to go undetected for weeks, months and even years, so a review of processes, and the adoption of automation technology, is critical.
“Speed of identification is the main goal for banks, which should realistically aim to check changes to customer risk data in near real-time to swiftly and accurately identify financial crime. Achieving a state of true pKYC isn’t an overnight process, so institutions must constantly build their technology infrastructure to support the automation of core processes.
“Those at an advanced stage of digital transformation are best equipped to keep pace with the evolving regulatory landscape, ensuring robust compliance processes, and protect themselves and society against financial crime.”
Earlier this year, Encompass Corporation raised £25m in a funding round
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