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The right RegTech can improve efficiency and accuracy of KYC checks and aid the onboarding process

An increase in compliance teams working away from the office, coupled with a need to stamp down on the growing issue of financial crime, means the time to invest in RegTech to ensure you stay one step ahead of the competition is now.

This is a contributed article from Encompass Corporation

Financial institutions’ clients demand a frictionless, fast and easy-to-navigate service. If providers fall short, they will take their custom elsewhere.

The impact of falling short

To get to the heart of what businesses want from their experience with financial services providers, and the possible consequences of not meeting expectations, we surveyed decision-makers in SMEs about their experiences during the Coronavirus pandemic.

The responses revealed:

  • 41% of businesses are planning to change their banking provider due to the slow support that has been offered during the COVID-19 outbreak.
  • 49% of business decision makers revealed that their bank has yet to directly offer financial support during the COVID-19 crisis
  • 42% per cent admitted to waiting over two weeks for a business loan application from their current banking provider, with 46% noticing significant delays in their bank’s onboarding process since the start of lockdown
  • 40% agreed that their bank’s online digital services and support around COVID-19 has been poor

surveyed decision-makers SME Coronavirus pandemic.

In a separate survey, we also questioned key decision-makers about their applications for services, and attitudes to FinTechs and challengers banks.

  • 38% of UK businesses have deliberately abandoned an application for banking services in the last year due to ‘slow due diligence processes’
  • 29% said they now trust challenger brands and FinTech providers more than traditional banks

RegTech and the ‘new norm’

As we adjust to our new norm which, for many, means increased remote working, the benefits of utilising RegTech solutions to ensure compliance and efficiency are becoming increasingly clear.

With compliance teams working in different locations, and opportunistic criminals no doubt eager to take advantage of any weaknesses in processes or controls, RegTech can support businesses at a time when headcount may have to alter and priorities will shift.

In some instances, this realisation is leading those in question to accelerate existing RegTech implementations, while others start looking into how they can make the most of technologies as a matter of urgency.

RegTech, and the key elements of solutions, can support regulated firms through these complex circumstances, with just some of the benefits explored below.

 Software as a Service (SaaS)

SaaS solutions are fast to implement and require very little IT resource. Standard, out-of-the box solutions can be up and running in a matter of days, and can be easily accessed remotely, via computers or mobile devices, without having to contend with firewall issues – something that has posed significant challenge to many organisations in this transition to home working.

Customer experience

In the current pressured environment that we find ourselves in, enabling a seamless customer-friendly experience is more important than ever. Through Intelligent Process Automation (IPA), our platform assists in promoting effective cost and time management, by reducing the total cost of ownership associated with client and third-party due diligence and improving analyst productivity by eliminating inefficient manual processes.

IPA dramatically reduces the time taken to search, review, collate and report on multiple, structured and unstructured data sources, allowing analysts to focus on more business critical tasks, which ultimately boosts business productivity.

It also automates repetitive manual tasks, like data gathering, saving you time and money while eliminating human error. It provides the opportunity to streamline and bring consistency to onboarding efforts across the organisation.

With IPA delivering a faster and more accurate KYC onboarding process, productivity increases. And  the KYC process is smoother and easier than before.


Control is a critical element of a robust, successful KYC programme. However, maintaining effective oversight of remote teams of hundreds, if not thousands, of KYC analysts may seem impossible.

A single platform for KYC discovery, screening, IDV and ongoing monitoring can automate these activities in line with a firm’s documented policies and procedures.

Utilising automation means that each task is completed consistently, and a detailed audit trail ensures every search and action is accurately recorded for regulatory purposes. Furthermore, KYC files can be accessed by analysts as and when needed to onboard or refresh, ensuring a level of confidence and consistency that could not be felt otherwise.

The current global crisis has put consumers in an unknown position, as thousands are having to lean on traditional banks, modern FinTechs and lenders, making it the ideal time to trust in the power of RegTech solutions.

Onboarding customers has become a costly and time-consuming process. Increased regulatory requirements mean that more data is needed to meet Know Your Customer (KYC) obligations than ever before. Ensuring consistency in approaches to data has become a key challenge for regulated firms. Learn how Encompass, the leading provider of KYC on demand powered by Intelligent Process Automation, has helped Santander drive efficiency and consistency in their KYC processes in this short case study.




  • Editorial Director of the The Fintech Times

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