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

WEBINAR

Recorded Webinar: Perpetual KYC: compliance as the source of better business

Perpetual KYC (pKYC) opens the door for financial institutions and corporations to improve customer onboarding & monitoring processes, reduce operational costs, ensure regulatory compliance, and better understand risk exposures in real time. Unlike traditional or periodic KYC, pKYC continually reviews and updates client data in near real-time providing ongoing data accuracy and accurate risk management....

BLOG

Plenitude Secures Strategic Investment from Private Equity Firm GCP

Financial crime and compliance specialist Plenitude has secured a strategic investment from Growth Capital Partners (GCP), a private equity firm focused on investing in growth companies in the technology and services sectors. The investment will support the further build-out of new software capabilities and accelerate Plenitude’s expansion plans including establishing a presence in the Asia-Pacific region....

EVENT

ESG Data & Tech Summit London

The ESG Data & Tech Summit will explore challenges around assembling and evaluating ESG data for reporting and the impact of regulatory measures and industry collaboration on transparency and standardisation efforts. Expert speakers will address how the evolving market infrastructure is developing and the role of new technologies and alternative data in improving insight and filling data gaps.

GUIDE

Regulatory Data Handbook 2022/2023 – Tenth Edition

Welcome to the tenth edition of A-Team Group’s Regulatory Data Handbook, a publication that has tracked new regulations, amendments, implementation and data management requirements as regulatory change has impacted global capital markets participants over the past 10 years. This edition of the handbook includes new regulations and highlights some of the major regulatory interventions challenging...