Review your risk exposure as it happens – with trigger-based KYC

Why are financial services firms stuck in time-based KYC review cycles?

Why are financial services firms replicating what they would do with paper files for client onboarding and KYC? Completing them and pulling them out to review periodically, all be it on a computer screen rather than from a filing cabinet?

Most firms carry out KYC on their client data on a periodic basis every 1, 3 or 5 years, depending on the risk rating of the client. But once these checks are done the data is out of date. Also, the checks carried out on the majority of clients will show that the details won’t have changed (> 90-95% according to our clients) so there is a lot of wasted manual effort, time and money. And the remaining 5-10% that do actually have a material change might not get picked up until 3-5 years after review exposing the firm to significant regulatory and trading risk.

Why not automate the onboarding and KYC process? Is this even possible?

We think it is! iMeta cleverly tackles this via automation 3rd party data providers send trigger events regarding client data changes to iMeta CLM, via API, as soon as they happen. iMeta automatically assesses the data change based on a firm’s policy and if required notifies users automatically, so they get a view of the change and potential risk factor as it happens.

Firms can then adjust the transaction profile of a client quickly. By rapidly gathering up-to-date client information, firms can ensure compliance with regulatory and risk policies in real-time. It also means that they can concentrate on their relationships to maximise profitability so there’s no time and money wasted trying to manage out of date client relationships.

Ensure Compliance in Real-Time

iMeta CLM platform has been designed to allow firms to;

  • Quickly gather the initial data and documentation in one place; providing a single view of the
    client-base and classifications
  • Capture the risk rating at the beginning of the relationship with the client
  • Set data-driven early KYC for onboarding, and continuous KYC with trigger-based exception events, based on the clients risk ratings and policies and the firms review frequencies, to initiate the necessary, subsequent checks.
  • Easily re-classify a client’s risk rating, accompanied by automated re-setting of later review triggers, depending on the new risk profile
  • Quantify future and upcoming reviews ahead of time, to allow for forward planning of resource needs and risk profile reporting
    iMeta CLM enables you to; Validate, Classify, Set and Forget, giving you and your firm assurance with your compliance obligations.