The Challenge:
Following the acquisition of a specialist fund administrator by a major global Bank, it was identified that the existing KYC information held for the investors serviced by the company was not fully aligned with the Bank’s global standards. Additionally, the lead regulator for the fund administrator’s core business line had increased its KYC expectations, with a requirement to bring a large population up to standard in less than six months.
These internal and external challenges required a remediation effort to bring over a hundred thousand investors into compliance with the revised standards within tight deadlines but without an easy option to surge staff numbers to cope with the intensive exercise.
Remediating a high volume of parties within a short period of time could not be achieved with manual processes. Therefore, the Bank looked for a solution to automate this process. It determined that none of the available options from its existing vendors would be able to remediate the required volume of parties in time. The Bank recognised the need for using a robust, market-leading data-based verification with coverage that matches the global operations of the Bank and intelligence updated in real time.
Additionally, the Bank required a solution that would use a form of validation for the investors that was not reliant on Electronic ID Verification (EIDV) wherever possible, in order to deliver a fast and frictionless KYC service. Comprehensive coverage was of utmost importance to meet the global structure of the client and its global operations.
The Solution: Remediation
The Bank chose KYC360 to provide a comprehensive KYC solution capable of handling the extensive remediation required. KYC360 developed a multi-faceted and tailored approach involving non-documentary validation processes and automated data waterfalls to cater for investors who did not pass non-documentary validation, or were not eligible for it.
Proof of Concept
• Established a proof of concept within one month of contract signature, demonstrating the feasibility and effectiveness of the proposed solution.
Bulk Processing
• Once the bulk automated process was ready, KYC360 successfully processed 148,000 investors through non-documentary checks within three weeks, providing immediate compliance progress to regulators. This process was completed within 4 months of contract signature.
Self-Service Portal
• Developed and launched a self-service portal, enabling the Bank to conduct ongoing KYC checks independently and efficiently in a daily cadence, resulting in the Bank utilising the KYC360 service for onboarding new investors, in addition to ongoing remediation tasks.
Bulk Outreach
• The investors who could not be onboarded through non-documentary checks were sent bulk outreach emails using HTML, mail merge and language options to deliver a personalised, branded communication in each case. The emails were delivered directly from the Bank’s email domain.
Vendor Consolidation
• The Bank could rely on the KYC360 platform for both EIDV and non-documentary checks. Their remediation goals and ongoing onboarding are handled in one no-code platform that is tailored specifically for their requirements, without the need to utilise multiple vendors.
• KYC360 dealt directly with the sub-contracting of data providers, so the Bank had only one contract to sign to access and maintain the service.
• All of the information related to each onboarding is easily accessible on one platform.
The Results
KYC360’s tailored solution enabled the investors administered by the specialist fund administration company to meet stringent KYC requirements imposed by the Bank and its regulators, demonstrating the platform’s capability to handle complex, large-scale compliance challenges efficiently and effectively. This enabled the Bank to meet the required deadlines with minimal additional staffing overhead.KYC360 was given a series of demanding targets and we hit them within the agreed timeframes and budgets due to the skillset of our development team and our specialist compliance knowledge. The cost per investor was kept low, through efficient bulk processing and automation.
LSEG’s comprehensive coverage of 400+ country specific sources spanning 50+ countries and company registries reduced friction and increased matching during onboarding, driving increased net new users and CLTV (customer life-time value). At the time of writing, KYC360 has successfully remediated over 225,000 investors through non-documentary onboarding and EIDV onboarding journeys. In addition, more than 59,000 new investors have been onboarded.
The solution is designed for scalability, supporting ongoing KYC for new clients and future regulatory changes.
Comply and Outperform with our Remediation Solution
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KYC360 offers award-winning automated KYC software that turns compliance into a competitive advantage. We provide fully configurable, scalable, auditable and risk-based onboarding, screening and pKYC solutions. Our partnership ecosystem includes top-tier organisations, such as, in the context of this case study, LSEG Risk Intelligence. With LSEG Identity Verification (previously Global Data Consortium) you can verify the identities of individuals and businesses quickly, efficiently and with high levels of assurance. Our solutions draw on 400+ authoritative, in-country data sources across 50+ countries. Architected for rapid deployment with guaranteed rapid ROI the KYC360 end-to-end no-code SaaS platform is flexible, fully configurable and modular so that you option and pay only for the functionality you need. 
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