How a Managed Service Provider can make compliance effortless

Financial Services Companies are facing increasing challenges in managing KYC (Know Your Customer) operations. The perennial review of costs inevitably focusses on KYC, so Companies must balance the obligations of staying up to date with ever-changing requirements across multiple jurisdictions against the increasing cost of compliance. These challenges can be addressed by using a KYC managed service.

Let us explore some of the challenges and how partnering with a trusted managed service provider can help:

  • Manual Processes: KYC operations often involve manual tasks such as data collection, verification, and documentation. This can result in a time-consuming and error-prone process, leading to delays, inefficiencies, and poor client experience
  • Regulatory Compliance: Companies need to comply with stringent regulatory requirements related to customer due diligence and anti-money laundering. Staying updated with ever-changing regulations and ensuring compliance can be complex, costly and resource intensive.
  • Scalability and Flexibility: KYC workload can vary significantly based on factors such as customer demand, regulatory changes, or business growth. Companies can struggle to maintain an appropriately sized and experienced workforce to meet demand and specifically KYC Refresh deadlines. The ability to quickly scale-up and scale-down operations to meet fluctuating or ad hoc demands can provide a competitive advantage.
How a Managed Service can help

A managed service provider specialises in KYC compliance and keeps updated with regulatory changes. They can provide dedicated teams at scale with the necessary knowledge and experience to ensure compliance. Outsourcing KYC operations to a managed service provider can address these challenges and offer several benefits:

  • Expertise and Efficiency: Managed service providers have the necessary expertise and experience to handle the process efficiently. They can employ best practices to generate efficiencies and implement zero-cost process improvements to support rapid expedition of case completions. For example, implementing a targeted customer outreach process, building pipeline management strategies to minimise customer disruption, and formalising a robust notice to close process.  
  • Agility: How important is it to react decisively? Managed service providers offer scalability and flexibility to handle fluctuating KYC workloads. They can quickly allocate resources and adjust capacity based on demand, ensuring efficient operations and operational agility.
  • Cost Optimisation: Outsourcing KYC operations to a managed service provider can help companies reduce costs by leveraging economies of scale, spreading the costs across multiple clients and or business units. This allows financial institutions to access specialised expertise on demand at a reduced cost, compared with in-house operations.
Laser Focus

Companies are ever more focused on ensuring the effectiveness and scalability of their compliance processes. It is without doubt a key area when looking to gain, and in many cases re-gain, the trust of the regulators. It is also often a key differentiator in attracting new customers whilst navigating the near constant regulatory changes.

That is why many companies partner with a managed service provider to leverage expertise and capabilities without having to invest in building and maintaining the necessary infrastructure and resources internally.

Exploring Possibilities

There is real scope for Companies to overcome the challenges associated with KYC operations. They can benefit from improved efficiency, enhanced compliance, and cost optimisation, allowing them to focus on their core competencies while ensuring robust KYC processes are in place.

How we can help

DCM has deep domain expertise with a strong commitment to operational excellence. We are a passionate and diverse team who put the client at the heart of everything we do. Our managed service can optimise KYC business operations with a reduction in total cost of KYC compliance with the flexibility to scale-up and down as demand requires.

DCM is building—and continually upskilling—global teams of compliance professionals to help Financial Service firms adapt to evolving regulations. We firmly believe it is the quality of a provider’s people, not just its technology, that makes the difference in on-going transformation.

For more details on how our managed service could transform your business please contact us

Written by Gary Booth - Senior Advisor DCM

For more information on all our services please get in touch here.