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Arachnys KYC Survey Confirms Industry Demand for Automation of Customer Monitoring
AML RightSource : April 30, 2021
Second annual industry survey by Arachnys reveals a strong shift in KYC and AML analysts’ requirement for automating the monitoring of customer changes, as financial institutions look to improve or replace traditional periodic reviews.
The 2021 Arachnys AML/KYC Data Survey also found:
- 82% admit to using Google for due diligence or risk investigations
- Analysts are still spending nearly half their time processing data into a usable format
- Over half need better external data on people and companies
- 60% only update and re-align data sources with policies once or twice annually
Building on the great insights of their 2020 survey, Arachnys globally surveyed 172 AML & KYC professionals, with 60% working in the financial sector. The survey also details some of the main goals industry professionals are looking to achieve in the near term, with 32% looking to reduce false positives, 24% looking to automate manual processes, and 20% looking to create a single customer view.
David Buxton, founder and CEO at Arachnys commented “Last year we discovered that KYC and AML analysts still need broader and deeper access to company data, and that has not changed. As FIs look to accelerate processes to onboard, screen and investigate customers, the need for better data reinforces the fact that there is no single source of truth. Coupled with this requirement, is an obvious demand in the ability to automate the monitoring of customer changes and building a more accurate and proactive risk picture.”
Chuck Taylor, Executive VP, Head of Financial Crimes Advisory at AML RightSource added “A point in time KYC review can be both ineffective and inefficient. The moment it is completed it is stale and can leave the door open to unnecessary risk. The only reasonable point in time review should be at onboarding, from that point on KYC should be fluid and dynamic. Automated tools that identify customer risk through continuous monitoring, while only surfacing what is new, save time and enhance the control environment.”
You can download the full survey report here.