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Know Your Customer (KYC)

Know Your Customer (KYC)

An API-first, SaaS solution that enables financial institutions to efficiently manage local and global KYC due diligence requirements throughout the entire client lifecycle and includes continuous risk monitoring to ensure ongoing compliance with KYC regulations.

Fenergo

Discover the Power of Fenergo Know Your Customer

Fenergo Know Your Customer offers a risk-based approach to KYC compliance that efficiently focuses resources on higher risk clients and ensures lifecycle compliance with local and global KYC regulations.

1

Reduce Risk and Manage KYC Compliance

Future-proof compliance with Fenergo's continuous risk monitoring process and risk-based approach to KYC.

2

Improve Operational Efficiencies

Streamlining the KYC process with automation and straight-through processing reduces the manual rekeying of data, the possibility of human errors and operational costs.

3

Reduce Total Cost of Ownership

Delivered as a SaaS solution, Fenergo reduces the costs of managing and maintaining technology infrastructure and “cost to change” budget, reducing application, support and configuration costs.

4

Transform Client Experience

A reduction in system hand-offs and duplication of data means teams are more organized around completing high value work tailored to the client’s needs, ultimately providing a better client experience.

5

Unlock Revenue Potential

Applying a risk-based approach to KYC compliance and having a clear view of the risk profile across the client portfolio will help identify opportunities for growth amongst new and existing clients.

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Solve KYC Compliance with Fenergo

Fenergo KYC is an API-first, SaaS solution that enables financial institutions to efficiently manage global KYC due diligence requirements throughout the entire lifecycle. Our intelligent Policy Manager dynamically determines the KYC and AML requirements to be met during every stage of the client lifecycle. The solution incorporates continuous risk monitoring to ensure ongoing compliance with KYC Regulations and is complimented by our sophisticated workflow management capabilities to orchestrate the client journey from onboarding, KYC reviews to offboarding.

It streamlines operational efficiencies by integrating seamlessly with Fenergo’s industry-leading data, ID&V and screening partners, eliminating silos between operational and compliance teams, and reducing client outreach.

With Fenergo Know Your Customer, You Can:

Comply With Local and Global KYC Requirements

Pre-packaged with KYC data, document, and ownership and control rules for all entity types and natural persons across 120+ jurisdictions, Fenergo KYC gives financial institutions peace of mind that the correct levels of due diligence are being applied to clients and related parties. Utilizing our rules saves time on implementation, resulting in quicker time-to-value.

Ensure Continuous KYC Risk Monitoring

Fenergo KYC provides continuous monitoring of the client profile by identifying changes from integrated data and screening providers, assessing the impact of those changes and determining materiality to keep the KYC profile up-to-date in real-time. It enables financial institutions to detect and action potential KYC risks earlier than the next scheduled review.

Automate Client Risk Assessments (CRA)

Fenergo KYC’s Risk Engine dynamically responds to inputs to a client’s KYC profile and automatically calculates client risk assessment, driving appropriate levels of due diligence, including enhanced due diligence for higher risk clients.

Fenergo supports multiple risk models and users can trust that the correct financial crime risk model is called at the correct point-in-time thanks to dynamic risk scoping rules, as defined by the business.

Identify & Visualise Complex Relationships

Fenergo’s Related Party Manager enables financial institutions to identify, create and visualize complex entity relationships and structures, including ultimate beneficial owners and persons with significant control.

Leverage Pre-built Integrations to Industry-Leading Providers to Optimise Efficiencies and Reduce Silos

Legal Entity Data with External Data Providers: Fenergo KYC is integrated with market leading data providers to simplify the data collection process and to validate data provided by the client, ultimately, transforming the experience.

Screening Integrations
: The solution is complemented by advanced screening integrations to industry-leading screening providers to detect Politically Exposed Persons (PEPs), Sanctions and Adverse Media alerts and support the AML process.

Fenergo KYC Report Cover

The KYC Report

A Final Frontier for Digital Transformation in Banking.

This report investigates the direct and opportunity costs of allocating huge resources to KYC functions. Authored by Stella Clarke, Chief Strategy & Marketing Officer & Cengiz Kiamil, Vice President, Strategy @Fenergo.

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FAQs

Why Is KYC So Important?

The KYC process protects financial institutions and the entire financial system from financial crimes e.g. money laundering, terrorism financing and other illegal frameworks.

What Is Involded in the KYC Process?

The KYC process is heavily dependent on client information. Clients must prove they are who they say they are and that their sources of funds are legitimate. They need to prove their identity and produce documents verifying the legitimacy of their information and onboarding application. Financial institutions may refuse to open an account or may cease an existing relationship with a client if the client fails to meet KYC requirements.

What Are the Key Challenges of Conducting KYC?

There are 3 key challenges of conducting Know Your Customer.

Firstly, the KYC process is very information and document heavy. Clients must prove they are who they say they are, and all monies associated with them have a legitimate source. For financial institutions that do not have KYC automation, the process of outreaching to clients to collect this information is quite haphazard and time-consuming. In fact, KYC is a key reason why client onboarding takes so long.

Secondly, when the client information is submitted, it must be inputted and processed into the relevant systems. This can introduce a high level of human error. The more manual a KYC process is, the more KYC specialists are required to manually input and review client information to make an assessment as to how much risk the client poses to the institution. Due to the complexity of KYC reviews and the amount of information required to be sifted through, this can lead to errors in judgment and inadvertently doing business with entities that may harm the reputation of the financial institution. Furthermore, the more people required to conduct Know Your Customer checks, the higher the cost of KYC compliance.

The final challenge comes in the form of regulatory scrutiny. In 2022, global penalties totalled $4.9 billion for KYC violations and non-compliance (Fenergo Fines Report, 2022).

What is Perpetual KYC?

Perpetual KYC (or PKYC) automates as much of the existing periodic KYC review process as possible. It means continuous monitoring of the client profile - identifying changes across relevant data sources, assessing their risk impact, and applying materiality. With more frequent but fully automated incremental refreshes, the client profile is kept up to date, so that when a review falls due, the volume of work requiring human intervention is reduced.

What Are the Benefits of Perpetual KYC?

There are many benefits of P-KYC. Here are three core benefits for financial institutions.

  1. Future-Proofed KYC Compliance: Perpetual KYC provides ongoing monitoring of a client’s profile by validating previously collected information and continuously identifying and assessing changes in the client’s profile on an ongoing basis. This ensures that the financial institution is continually capturing, flagging and acting upon information that may change the risk profile of a client.

  2. Reduced Operational Burden: Perpetual KYC can significantly reduce the operational burden of work from KYC teams. By capturing changes in a client profile and measuring the materiality of these changes on an ongoing basis, financial institutions can eliminate the build-up of scheduled client reviews. By responding in real-time to changes that have material impacts, they can manage risk by exception and allow other non-material changes to be managed via straight through processing.

  3. Reduced Operational Costs: The single biggest contributor to the cost of KYC compliance is people. Through advanced digitalization and optimization of the KYC review process, Perpetual KYC can deliver significant operational cost savings accrued by making better use of KYC specialists’ time.

Want to Know More About Fenergo KYC?

Contact us and we'll arrange for one of our KYC experts to show you how Fenergo KYC can transform your compliance operations.