About a-team Marketing Services
The knowledge platform for the financial technology industry
The knowledge platform for the financial technology industry

A-Team Insight Blogs

Fenergo Study Reveals True Cost of KYC

Subscribe to our newsletter

A global study of more than 1,000 C-level executives across corporate and institutional banks, published by client-onboarding specialist Fenergo, offers a view on how much of a burden KYC represents for many institutions.

Financial institutions are spending millions of dollars every year inefficiently onboarding and maintaining clients, according to the research. The survey, conducted in August this year, found that almost 30% of firms are dedicating between 31% and 40% of their entire compliance budget to meeting their KYC obligations.

This is reflected by the number of full-time employees dedicated to KYC-related activities, which totalled between 2,000 and 2,500 staff for 21% of firms surveyed, between 1,500 and 2,000 for 31% of firms, and between 500 and 1,000 for 12% of survey respondents. Overall, more than 80% of respondents have between 1,000 and 2,500 employees working on KYC tasks.

The survey found that, on average, over half are spending between $1,500 and $3,000 to complete just one client KYC review. More than 10% of respondents said they were spending $3,000 to $3,500, 15% were spending $2,500 to $3,000, 19% were spending $2,000 to $2,500, and 20% were spending $1,500 to $2,000.

The findings also showed that over half of financial institutions are spending between 61 and 150 days on KYC reviews for clients, with 8% spending 150 to 210 days on the task.

Much of that time is spent gathering and inputting data across multiple systems. Some 90% of respondents said labour-intensive KYC impacts their ability to make better risk decisions. However, the data also shows that financial institutions are now focusing investment on automation with 62% prioritising spend for technology.

Subscribe to our newsletter

Related content


Recorded Webinar: How to apply innovative e-comms surveillance whilst ensuring control, compliance and enhanced productivity

Remember the days when email was the predominant media for electronic communications within and among financial institutions? Fast forward to today, and email represents a declining fraction of these e-comms, many of which are hosted by modern collaborative platforms such as Microsoft Teams, Webex, Slack, and Zoom, and all of which are subject to surveillance....


Fenergo Perpetual KYC Service Offers Operational Efficiencies, Reduced Costs and Risk

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)...


FinCrime Tech Briefing, New York

RegTech Insight (from A-Team Group) is proud to announce the launch of its FinCrime Tech Briefing taking place in both London and New York this summer and focusing on RegTech for AML and Financial Crime Compliance.


Regulation and Risk as Data Management Drivers

A-Team Group recently held a webinar on the topic of Regulation and Risk as Data Management Drivers. Fill in the form to get immediate access to the accompanying Special Report. Alongside death and taxes, perhaps the only other certainty in life is that regulation of the financial markets will increase in future years. How do...