Fenergo has joined early providers of perpetual KYC services with Smart Review, a solution designed to enable financial institutions to streamline periodic KYC review processes and reduce costs through automation.
Smart Review automates the continuous monitoring of client profiles for KYC compliance by identifying all changes to relevant entity data, transactions and anti-money laundering (AML) screening. It assesses the risk impact of these changes to client circumstances while automatically determining relevancy and materiality. This allows lower-risk cases to be straight through processed while higher-risk cases are prioritised for enhanced due diligence by an analyst.
The solution is available globally to financial institutions and is a modular addition to Fenergo’s Software as a Service (SaaS) client lifecycle management (CLM) offering. It is pre-configured with integrations to leading data and screening providers.
“The requirement to complete ongoing KYC reviews manually for a bank with hundreds of thousands of clients presents a huge and costly operational burden, particularly when genuine key risk factor changes are minimal,” says Stella Clarke, chief strategy officer at Fenergo. “With Fenergo Smart Review, financial institutions can streamline the KYC review process by automating the continuous monitoring of clients. This ultimately improves operational efficiencies, while reducing operating costs and regulatory risk.”
Financial institutions are mandated to review every customer relationship on a periodic basis in line with global and national KYC regulatory requirements. A recent study by Fenergo describes a people-driven, labour-intensive process. It found that over half of financial institutions are spending between 61 and 150 days on KYC client reviews and the average cost of a single review is $2,200.
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