Know Your Customer (KYC): The Challenges Faced by the Banking Sector When Onboarding ... · 2018-05-09 · 4| 48 This research explores the challenges that the banking sector faces

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ResearchFindings

KnowYourCustomer(KYC):TheChallengesFacedbytheBankingSectorWhenOnboardingNewClientOrganizations

Author:GLEIFMay2018

2 |48©2018GLEIFand/oritsaffiliates.Allrightsreserved.|Author:GLEIF|Know-Your-Customer|GLEIFrestricted 2 |48

Content

1. Researchbackground 3

2. Keytakeaways 7

3. EntityIdentifiers 9

4. Onboardingissues 13

5. Assessingthebusinessimpact 18

6. So,willthingsgetbetter 21

7. Summary 28

8. Appendix 30

9. BetterKnowledge,BetterBusiness 44

2018-05-09

3 |482018-05-09©2018GLEIFand/oritsaffiliates.Allrightsreserved.|Author:GLEIF|Know-Your-Customer|GLEIFrestricted 3 |48

ResearchBackground

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Thisresearchexploresthechallengesthatthebankingsectorfaceswhenitcomestoonboardingnewclientorganizations,withaviewtoinvestigating,inparticular,theimplicationsofKnow-Your-Customer(KYC)regulation.Theresearchwasconductedamong102seniorsalespeopleinthebankingsector.

ResearchOverview

©2018GLEIFand/oritsaffiliates.Allrightsreserved.|Author:GLEIF|Know-Your-Customer|GLEIFrestricted

16%

20%

17%15%

16%

16%Under50employees

50- 99employees

100- 249employees

250- 499employees

500- 999employees

1,000+employees

35

34

33

Total 102

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Numberofemployees

Base:Total(102) S3Howmanypeopleareemployedbyyourorganization?

2018-05-09

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SalesDirector,44%

VPofSales,32%

HeadofSales,17%

SalesLead,7%

Roles

Jobtitle

©2018GLEIFand/oritsaffiliates.Allrightsreserved.|Author:GLEIF|Know-Your-Customer|GLEIFrestricted 5 |48

Base:Total(102) S4Couldyoupleaseconfirmyourjobtitle?

2018-05-09

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Responsibilities

InvestmentProducts

Shares

Bonds

Derivatives(e.g.options,futures)

61%

51%

49%

44%


Responsibilityforbuyingandselling…

Base:Total(102) S2Forwhichofthefollowingdoyouhaveresponsibilitywithinyourorganization?

2018-05-09

7 |48©2018GLEIFand/oritsaffiliates.Allrightsreserved.|Author:GLEIF|Know-Your-Customer|GLEIFrestricted 7 |48

KeyTakeaways

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Theonboardingprocessisfarfromslick

§ Institutionsuse,onaverage,4identifiers

Identifiersareofteninconsistent

§ 49%reportissueswiththesameIDbeingusedfordifferententities

§ 47%reportthatanentitymayhavemorethanoneidentifier

Onboardingthereforecreatesasignificantburden

§ Ittypicallytakes6weekstoonboardanewclient

§ 57%ofsalespeoplespendatleast1.5daysaweekonboarding

Thereisnoonestopshopforidentifiers

©2018GLEIFand/oritsaffiliates.Allrightsreserved.|Author:GLEIF|Know-Your-Customer|GLEIFrestricted 8 |482018-05-09

9 |48©2018GLEIFand/oritsaffiliates.Allrightsreserved.|Author:GLEIF|Know-Your-Customer|GLEIFrestricted

EntityIdentifiers

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Financialinstitutionsuse,onaverage,fouridentifierstohelpidentifyclientorganizations

Inordertoaccuratelyidentifyclientorganizationswiththemostup-to-datedata,financialinstitutionstendtouseavarietyofdifferentidentifiersforcross-checks.Onaveragetheyuse4differentidentifiersinternally,butaboutathirdsaytheyuse5ormoreidentifiers.

Averageof4

identifiersused

1-350%

4+50%

420%

5,15%

6,10%

7,3%

8+,2%

327%

215%

18%


Base:Total(102) Q3Onaverage,howmanydifferentidentifiersdoesyourorganizationusetoidentifyeachclientorganizationyoudobusinesswith?

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Nosingleidentifierhasgainedglobalacceptance

Thereisnosingleidentifierwhichactsasastandardfortheindustry.Howeverseveralareusedbyasubstantialproportionoforganisations.

Averageof4

identifiersused

215% 1

8%

Identifiersused

Other

DUNSID

OthervendorIDs

SECCIK– SecuritiesandExchangeCommission,CentralIndexKey

ThomsonReuters– PermID

InternalIDs

CUSIP– CommitteeonUniformSecurityIdentificationProcedures

RSSDID– ReplicationServerSystemDatabase(assignedbytheFederalReserveBank)

GlobalLEISystem– LegalEntityIdentifier

FDICCertificateID– FederalDepositInsuranceCorporation

ISOBIC– InternationalOrganizationforStandardizationBusinessIdentifierCode

45%

44%

43%

35%

34%

33%

31%

31%

15%

12%

1%


Base:Total(102) Q3Onaverage,howmanydifferentidentifiersdoesyourorganizationusetoidentifyeachclientorganizationyoudobusinesswith?Q2Whichofthefollowingidentifiersdoesyourorganizationusetoidentifyclients(i.e.legalentities)youdobusinesswith?Pleaseselectallthatapply

2018-05-09

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Theproliferationofidentifiersoftenthrowsupinconsistencies

Financialinstitutionsusemultipleidentifiersforcross-checking.ButthiscreatesconfusionbecausethesameIDmaybeassociatedwithmultipleentities(49%),anddifferentIDscanrelatetothesameentity(47%).

54%agree

Theuseofdifferentlegalidentifiersforthesamelegalentityleadstoinconsistencieswithupdatestodifferentreferencedatasets

Accesstothereferencedataassociatedwiththeidentifierisexpensive

Morethanoneidentifierofthesametypereferstothesamelegalentity

ThesameIDisusedfordifferentlegalentities

Referencedatafromdifferentsourcesisinconsistent

Associatedreferencedataisnotuptodate(e.g.name,address,corporate

structure)58%

46%

49%

47%

42%

IssuesWith

referencedata

Multipleidentifiers

Cost

©2018GLEIFand/oritsaffiliates.Allrightsreserved.|Author:GLEIF|Know-Your-Customer|GLEIFrestricted 3 |4212 |48

Base:Total(102) Q4Which,ifany,ofthefollowingissuesdoesyourorganizationfacewiththeidentifierscurrentlyused?Pleaseselectallthatapply.Q20Towhatextentdoyouagreeordisagreewitheachofthefollowingstatements?

2018-05-09


OnboardingIssues

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Onboardingisaburdensomeandtime-consumingprocess

Newclientstypicallytake6weekstoonboard– moreif4+identifiersareused.

Aquarteroftheprocessinvolvesmanualtasksand6in10seniorsalespeoplespendmorethan1.5daysoftheirweekonboarding.

49%agreeMiddleandback-officeactivitiesrelatedto

onboardingareamajorburden

Onaverage25%oftheonboardingprocessinvolvesmanualtasks

48%agreeItisextremelydifficulttoquantifytheexact

costofonboarding

Spendmorethan1.5daysaweekdoing

onboarding-relatedactivities

Timetoonboardanewclientorganization(weeks)

61%

1-3

Numberofidentifiersused

6 7

Total

57%

6

53%

4+


Base:Total(102) Q5Inatypicalweek,whatproportionofyourtimeisspentdoingactivitiesrelatedtotheonboardingofnewclientorganizations?;Q6Onaverage,howlongdoesittakeforyourorganizationtoonboardanewclientorganization?;Q9Whatproportionofyourcompany’sprocessfortheonboardingofnewclientorganizationsinvolvesmanualtasks?;Q20Towhatextentdoyouagreeordisagreewitheachofthefollowingstatements?

2018-05-09

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Thereislittleconsensusastowhatistakingthemosttime,pointingtoalackofconsistencyinprocess

AntiMoneyLaunderingchecks

Riskrating

Validationofcustomerrelationshiptolegalentity

Collectionofcustomerinformation

Validationofcustomerinformation

Identificationoflegalentity

Documentationmanagement

CompliancewithKnowYourCustomer(KYC)regulation

Singleansweronlypermitted.

0– 250employees

Stageofonboardingthattakesthelongest

250+employees

18%#1 19%#2

11% 23%#1

16%#2 9%

18%

16%

15%

14%

13%

11%

7%

3%


Base:Total(102) Q10Whichstage/aspectoftheonboardingprocessfornewclientorganizationstakesthelongest?Pleaseselectone.

2018-05-09

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Butingeneral,reliabilityofinformationandlackofresourcesareasignificantchallengeformany

FalsepositiveswithAntiMoneyLaunderingalerts

Lackofprocessautomation

Accurateidentificationoflegalentities

Difficultiesreconcilingclientinformationfrommultipleinternalandexternalsources

Timeneededtocompleteonboardingprocessforclientorganisations

Contradictoryinformationfromdifferentsources

Resourcesneeded(e.g.time,people,money)

Reliabilityofinformation

Smallerbusinessesstruggleinparticulartoreconciledatafrommultiplesources(55%).

Top5challengesofonboarding

0-250 250+

49% 66%

47% 64%

49% 55%

49% 51%

55% 40%

44% 45%

38% 40%

51% 19%

Companysize57%

55%

52%

50%

48%

44%

39%

36%


Base:Total(102) Q1Thinkingaboutonboardingnewclientorganizations,whatwouldyousayarethetopchallengesyourorganizationfaces?Pleaseselectupto5.

2018-05-09

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KYCprovidershavenotyetshowntheirvalueinthemarketplace

MostuseKYCproviders,howevermanycomplainaboutout-of-datereferencedata(47%)andthecostofthesesolutions(46%).

AveragenumberofKYCprovidersused3

Expensive

Non-transparentmeansofidentifyingandreportingcorporatestructure

LimitedCoverage

Referencedataisnotalwaysuptodate 47%

46%

46%

43%

Increasesto59%ofthoseusing4+identifiers


Q14HowmanyKYCserviceprovidersdoesyourorganizationusetoaidKYCprocesses?Q15WhatwouldyousayarethemaindrawbacksofusingKYCserviceproviders?Pleaseselectallthatapply.

Base:Total(102)

2018-05-09


AssessingtheBusinessImpact

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Clientsarenotalwayssympathetictothedemandscomplianceplacesoninstitutions

2in5seniorsalespeoplesaythattheriskoflosingbusinessduetothelengthandcomplexityoftheonboardingprocessisatopchallenge.Clientsareparticularlyconcernedabouttheamountofinformationtheyneedtosharewiththird-parties.

Lackofresource

Needtopassregulatoryrequestsontoclientorganizations

Timeneededtoupdateclientorganizationsonnewregulatoryrequirements

Lackofregulatoryunderstanding

TimeneededtocomplywithKYCregulatoryrequirements

Lackofclientunderstandingofregulatoryrequirements

ContinuouschangesinKYCregulation

Clientconcernsaboutsecurityaroundwhoisviewingtheirdocuments

Riskoflosingbusinessduetolength/complexityoftheonboardingprocess 39%

38%

37%

36%

28%

27%

26%

24%

50%agree

It’sbecomingmoreandmoredifficult tocomplywithKYCregulation


14%

Base:Total(102) Q13StillthinkingaboutcompliancewithKnowYourCustomer(KYC)regulation,whatarethetopchallengesforyourorganization?Pleaseselectupto3.;Q20Towhatextentdoyouagreeordisagreewitheachofthefollowingstatements?

2018-05-09

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Longonboardingprocessescanleadtolossofbusiness

Around15%ofbusinessisatriskasaresultoftheclientlosingpatiencewiththeprocess.

And14%ofbusinessislostbecausetheclientidentitycannotbeverified.

Proportionofbusinessestimatedtobelost:

14%Transactionisrejectedbecausenotenoughinformationisknownaboutthelegalidentityofthecounterpart

15%Legalentityleavesbecauseonboardingprocessistoodifficult/takestoolong

55%agreeProspectsmightturntocompetitorsifittakestoolongtoonboardthemasnewclientorganizations


Q16Whatproportionofyourorganization’sbusinessdoesn’tgoaheadduetoeachofthefollowingreasons?Q20Towhatextentdoyouagreeordisagreewitheachofthefollowingstatements?

Base:Total(102)

2018-05-09


So,willthingsgetbetter?

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52%believethetimetoonboardwillincreaseoverthenext12months

52%Increase

29%Staythesame

15%Decrease

KeyDriversofChange

§ IncreasedFraud

§ Tighterregulations

§ Businessgrowth

§ BudgetLimitations

§ ProcessLimitations

§ Effortstostreamline


Base:Total(102) Q7.Howdoyouexpectthetimetoonboardnewclientorganizationstochangeoverthenext12months?Q8.Pleasegiveareasonforyouranswer.

2018-05-09

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“Daybyday,thefraudandriskfactorsaregrowing.So,toavoidthematallcosttherehastobebettertechnologiesandstepstoundergobeforetakingclientsonboard.”

“Withmoreregulationandmorescams,itwilltakealittlelongertocompletealltheproceduresforclientonboarding.”

“TheKYCtakeslongertoprovidetherequiredinformationascomparedtoprevioussetup.”

“WiththeimplementationofKYC,thevalidationprocesstimeistobeincreased.”

“Weareexpandingourbusinessaggressively.”

“Weareabouttochangeourmanpowerand,whilenewemployeesadjustandgainspeedweexpectthetime[toonboard]toincrease.”

BusinessGrowth

TighterRegulations

IncreasedFraud

52%Expectthetimetoonboardnewclientstoincrease



24 |48

Documentationmanagementrepresentsmostscopeforimprovement

AntiMoneyLaunderingchecks

Riskrating

CompliancewithKnowYourCustomer(KYC)regulation

Validationofcustomerrelationshiptolegalentity

Validationofcustomerinformation

Collectionofcustomerinformation

Identificationoflegalentity

Documentationmanagement

40%

0– 250employees

250+employees

23%

40%

16%

19%

32%

42%

37%

34%

32%

31%

30%

24%

23%

Identificationoflegalidentityalsohasthepotentialtobemademoreefficientaccordingto2in5seniorsalespeopleinthebankingsector.


Base:Total(102) Q11Andwhichstages/aspectsoftheonboardingprocessfornewclientorganizationshavethebiggestscopetobeimprovedintermsofefficiency?Pleaseselectuptothree.

2018-05-09

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Newtechnologiesareexpectedtobecomepartoftheonboardingprocess

Themajorityoffinancialinstitutionsexpectnewtechnologiessuchasdigitalsignaturesandblockchaintobeintegratedintheonboardingprocessofnewclientorganizations.

0-250 250+

42% 62%

36% 66%

44% 49%

Companysize

DigitalSignatures

DigitalCertificates

KYCUtilitiesBasedonBlockchainTechnology

61%agreeTheriseofdigitalwillmakeidentityverificationharderduetoa

riseinthenumberoflegalentitiestransactedwith.But


Base:Total(102) Q20Towhatextentdoyouagreeordisagreewitheachofthefollowingstatements?

2018-05-09

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Goingforward,legalentity

onboardingwillincorporate…

DigitalSignatures

51%

KYCUtilitiesBasedonBlockchainTechnology

50%

DigitalCertificates

46%


27 |48

TheKYCburdenisanongoingone


Onlytwothirdsoffinancialinstitutionsbelievetheyholdaccurateclientinformation.Lessthanathirdofclientscanbereliedontoreportmaterialchangestotheirlegalentity,sotheburdenremainswiththeinstitutiontoconductregularreviews.

Believeit’seasiertomonitorformaterial

changesafteronboardingiscompleted

54%

ofclientspromptlyreportmaterialchangestotheirlegalentity

Believetheinformationtheyholdonclient

organizationsisaccurate

66%

Only29%

Reviewinformationheldonclientorganizationsatleast every12months

63%

But… So

27 |48

Base:Total(102) Q17Howwouldyouratetheaccuracyoftheinformationyourcompanyholdsonclientorganizationsitonboardedinthepast?;Q18Whatproportionofyourclientbasedoyoubelievepromptlyreportsanymaterialchangesaboutthemasalegalentity?;Q19Andhowfrequentlydoesyourorganizationreviewtheinformationyouholdaboutthestructureofyourclients’legalentity?;Q20Towhatextentdoyouagreeordisagreewiththefollowingstatements?

2018-05-09


Summary

2018-05-09 28 |48


1

2

3

InstitutionsarefacinganincreasingburdenasaresultoftheneedtocomplywithKYC

Lackofreliableandconsistentidentifiersiscreatingmoreworkandlesscertainty

Thereisclearlyanopportunitytoalignononeidentifiertogenerateefficiencies

29 |482018-05-09


Appendix

2018-05-09 30 |48

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Top5challengesofonboardingnewclientorganizations


Total 0-250 250+ 1-3 4+

Contradictoryinformationfromdifferentsources 52% 49% 55% 39% 65%

Timeneededtocompleteonboardingprocessforclientorganizations 50% 49% 51% 37% 63%

Reliabilityofinformation 57% 49% 66% 55% 59%

Resourcesneeded(e.g.time,people,money) 55% 47% 64% 53% 57%

Accurateidentificationoflegalentities 44% 44% 45% 33% 55%

Difficultiesreconcilingclientinformationfrommultipleinternalandexternalsources 48% 55% 40% 45% 51%

Lackofprocessautomation 39% 38% 40% 39% 39%

FalsepositiveswithAntiMoneyLaunderingalerts 36% 51% 19% 35% 37%

Companysize Numberofidentifiersused

31 |48

Base:Total(102) Q1.Thinkingaboutonboardingnewclientorganizations,whatwouldyousayarethetopchallengesyourorganizationfaces?Pleaseselectupto5.

2018-05-09

32 |48

Onboardingtime


Proportionoftimespentdoingonboarding-relatedactivitiesinatypicalweek

28%

0-5% 6-10% 11-20% 21-30% 31-50% 51-75% 76-100% Don’tknow

3%

14%

25%

22%

3%4%

1%

0-5% 6-10% 11-20% 21-30% 31-50% 51-75% 76-100% Don’tknow

32 |48

Base:Total(102) Q5Inatypicalweek,whatproportionofyourtimeisspentdoingactivitiesrelatedtotheonboardingofnewclientorganizations?

2018-05-09

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Onboardingtime


Averagetimeittakestoonboardanewclient

Morethan4months

3to4months

2to3months

1to2months

Between1weekandamonth

Lessthanaweek

Don’tknow

1%

8%

17%

30%

36%

7%

1%

33 |48

Base:Total(102) Q6Onaverage,howlongdoesittakeforyourorganizationtoonboardanewclientorganization?

2018-05-09

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0-5% 6-10% 11-20% 21-30% 31-50% 51-75% 76-100%

Proportionofonboardingprocessthatinvolvesmanualtasks


6%

0-5% 6-10% 11-20% 21-30% 31-50% 51-75% 76-100%

19% 20%

25% 24%

6%

34 |48

Base:Total(102) Q9Whatproportionofyourcompany’sprocessfortheonboardingofnewclientorganizationsinvolvesmanualtasks?

2018-05-09

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IdentifiersandKYCprovidersused


Numberofidentifiersused

1-350%

4+50%

420%

5,15%

6,10%

7,3%

8+,2%

327%

215%

18%

35 |48

Base:Total(102) Q3Onaverage,howmanydifferentidentifiersdoesyourorganizationusetoidentifyeachclientorganizationyoudobusinesswith?

2018-05-09

36 |48

IdentifiersandKYCprovidersused


NumberofKYCprovidersused

327%

215%

230%

338%

416%

5,6%

1,8%

6+,1%

None,1%

36 |48

Base:Total(102) Q14HowmanyKYCserviceprovidersdoesyourorganizationusetoaidKYCprocesses?

2018-05-09

37 |48

Accuracyofclientinformation


Accuracyofinformationheldaboutclientorganizations

327%

215%

338%

416%

1,8%

5- Extremelyaccurate 4 3 2 1- Notatallaccurate

11% 55% 30% 4%

37 |48

Base:Total(102) Q17Howwouldyouratetheaccuracyoftheinformationyourcompanyholdsonclientorganizationsitonboardedinthepast?

2018-05-09

38 |48

Accuracyofclientinformation


Proportionofclientbasethatpromptlyreportsmaterialchanges

215%4

16%0-5% 6-10% 11-20% 21-30% 31-50% 51-75% 76-100%0-5% 6-10% 11-20% 21-30% 31-50% 51-75% 76-100%

2%

8%

28%

31%

17%

12%

2%

38 |48

Base:Total(102) Q18Whatproportionofyourclientbasedoyoubelievepromptlyreportsanymaterialchangesaboutthemasalegalentity(e.g.changesinidentityinformation,includingwhoownsorcontrolsthem)?

2018-05-09

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ImpactofcompliancewithKYCregulation


Impactontimeneededtocompleteonboarding

Impactonmonetaryresourcesneededtocompleteonboarding

5- CriticalImpact 4 3 2 1- MinimalImpact

33% 32% 17% 15% 3%

24% 37% 23% 14% 2%

39 |48

Base:Total(102) Q12WhatistheimpactofensuringcompliancewithKnowYourCustomer(KYC)regulationonthetimeandmonetaryresourcesneededtocompletetheonboardingprocessfornewclientorganizations?;Q20Towhatextentdoyouagreeordisagreewitheachofthefollowingstatements?

2018-05-09

40 |48

ProportionofbusinesslostduetoonboardingandIDverificationissues


28%

20%

19%

28%

31%

32%

24%

26%

20%

14%

16%

18%

4%

4%

8%

1%

2%

2%

Transactionisnotcompletedbecausethelegalentitycannotbeonboardedquicklyenough

Transactionisrejectedbecausenotenoughinformationisknownaboutthelegalentityofthecounterpart

Legalentityleavesbecauseonboardingprocessistoodifficult/takestoolong

0-5% 6-10% 11-20% 21-30% 31-50% 51%+

40 |48

Base:Total(102) Q16Whatproportionofyourorganization’sbusinessdoesn’tgoaheadduetoeachofthefollowingreasons?

2018-05-09

41 |48©2018GLEIFand/oritsaffiliates.Allrightsreserved.|Author:GLEIF|Know-Your-Customer|GLEIFrestricted 41 |482018-05-09

“Daybyday,thefraudandriskfactorsaregrowing.So,toavoidthematallcosttherehastobebettertechnologiesandstepstoundergobeforetakingclientsonboard.”

“Withmoreregulationandmorescams,itwilltakealittlelongertocompletealltheproceduresforclientonboarding.”

“TheKYCtakeslongertoprovidetherequiredinformationascomparedtoprevioussetup.”

“WiththeimplementationofKYC,thevalidationprocesstimeistobeincreased.”

“Weareexpandingourbusinessaggressively.”

“Weareabouttochangeourmanpowerand,whilenewemployeesadjustandgainspeedweexpectthetime[toonboard]toincrease.”

BusinessGrowth

TighterRegulations

IncreasedFraud

52%Expectthetimetoonboardnewclientstoincrease



29%Expectthetimetoonboardnewclientstostaythesame

“Asourorganisationisfacingcrisisfilledyear,wehavelimitedbudgettospendandaccesstosomeoftheclientsdataisexpensive.”

BudgetLimitations

“Idon'tthinkthereisanythingelsewecandotoincreasethespeedofgettingclientsonboardwithus.”

ProcessLimitations

“Companyhasjustthisyeartakenundernewsystemswhichhaveimprovedourmethodsdrastically.So,incoming12monthsIassumeittostaythesame.”

“Certainprocessesandduediligencecannotbefurtherstreamlined.Alsoatthemercyofotherorganizationstimelines.”

“Currentlyourbudgetisflatsowecan'tchange.”

42 |48


2018-05-09


15%Expectthetimetoonboardnewclientstodecrease

“Myorganizationistakingoversomelatesttechnologiestospeedupthecollectionofinformationandsignificantlyreducingtheriskoffraud.”

“Technologyhasstreamlinedourprocesses.”

Newsystems

NewprocessBusinessdecisionSpeedupcollection

TechnologyStreamline

Betterworkforce

Betterstrategies

43 |482018-05-09



BetterKnowledge,BetterBusinessSolutionproposedbyGLEIFtotheissuesidentifiedwiththeresearch

2018-05-09 44 |48

45 |4845 |48

Thefindingsinthisreportspeakvolumesabouttheneedforanaccurateandtransparentsourceforlegalentityidentification.

BetterKnowledge,BetterBusiness

2018-05-09©2018GLEIFand/oritsaffiliates.Allrightsreserved.|Author:GLEIF|Know-Your-Customer|GLEIFrestricted

Toomanybusinesses,especiallyinthefinancialservicesindustry,arelosingvastamountsoftimeandmoneyeachtimetheymakeabusinesstransactionasaresultofarangeofinefficientprocesses– andit’sthatinefficiencythatmeanstheyruntheriskoflosingthebusinessanyway.

Nottomentionencounteringcomplianceandsecurityissuesbecauseofpooridentification.

46 |4846 |48

BetterKnowledge,BetterBusiness

2018-05-09©2018GLEIFand/oritsaffiliates.Allrightsreserved.|Author:GLEIF|Know-Your-Customer|GLEIFrestricted

Notonlywillitreduceoperationalfriction,butitalsomakesinformationmoreaccessibleandreliable.Thisopportunitytocutcostsandgetmoreefficientandaccurateintheiroperations,allwhilstgainingdeeperinsightsintotheglobalmarketplace,shouldappealtoallbusinesses.

AdoptionofLEIspromisestodeliverrealbusinesscapabilities,benefitsandquantifiablevalueforthosebusinessesthatmaketheswitch.

Butthensoshouldthefactthataglobalstandardforlegalentityidentification,withopenaccesstotransparentandhighqualityreferencedataforall,wouldbeaforceforgoodinthefinancialindustryasawhole.

47 |48

Weenablesmarter,lesscostlyandmorereliabledecisionsaboutwhotodobusinesswith


FormoreinformationandregularupdatesonGLEIFactivitiesandLEIdevelopments,visittheGLEIFwebsitewhichisavailablein14languagesatwww.gleif.org

Followuson:

2018-05-09

48 |48

Thispresentationcontainsconfidentialandproprietaryinformationand/ortradesecretsoftheGlobalLegalEntityIdentifierFoundation(GLEIF)and/oritsaffiliates,andisnottobepublished,reproduced,copied,ordisclosedwithouttheexpresswrittenconsentofGlobalLegalEntityIdentifierFoundation.

GlobalLegalEntityIdentifierFoundation,theGlobalLegalEntityIdentifierFoundationlogoareservicemarksofGlobalLegalEntityIdentifierFoundation.

ISOandtheISOlogoareservicemarksofInternationalOrganizationforStandardization.Otherproductsandservicesandcompanynamesmentionedhereinarethepropertyofandmaybetheservicemarkortrademarkoftheirrespectiveowners.

Limitations

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Documents

Know Your Customer (KYC): The Challenges Faced by the Banking Sector When Onboarding ... · 2018-05-09 · 4| 48 This research explores the challenges that the banking sector faces