Deciding whether to buy or build your KYC solution?

If you are currently in the process of deciding whether to buy or build your compliance solution to help manage and automate KYC and AML processes, let PassFort give you a few things to consider.

Posted by: 
Oliver Malmed
  |  
Jan 22, 2021

January 22, 2021

Are you trying to decide whether to buy or build your KYC solution?

If you are currently in the process of deciding whether to buy or build your compliance solution to help manage and automate KYC and AML processes, let PassFort give you a few things to consider.

What is a Customer Lifecycle Management solution?

PassFort is a customer lifecycle management solution. What does that mean? Well, it means we help firms like yours to digitally transform their compliance policies. Then we help you automate the checks needed to manage risks associated with any new or existing customers. And we connect you to the data you need to satisfy those checks through integration with different global providers.

●      We support automation of customer onboarding journeys, both of individual and corporate customers, making sure the experience is fast and efficient for all involved.

●      We provide the tools you need to decide whether to off-board a person or company applying for one of your products.

●      And we help you monitor ongoing risks throughout a customer’s tenure - renewal checks can be set for any timeframe you choose.

All this comes with a full case management solution, so your KYC and compliance team has one place to review applications, make decisions and escalate issues for enhanced due diligence.

You might already be able to see how setting up this infrastructure yourself could be pretty complex and time consuming. But we’re not finished yet.

Accommodating complex compliance requirements

We don’t pretend to know everything there is to know about the different regulations applicable to financial services firms and their customers around the world. That would be a lot. But we do understand a flexible, configurable RegTech solution can accommodate any type of compliance policy.

PassFort is a solution that takes complex compliance requirements and breaks them down into digital workflows that can be adapted for any type or combination of KYC or AML check that you need to complete.

The platform uses Smart Policies to design and execute an automatic workflow of checks. Our customers can tailor smart policies for their particular business and then aim to maximise Straight Through Processing (STP), which means decisions are made about clients being onboarded or risk-checked without any human intervention.

Our customers achieve an average STP rate of 91%.

The beauty of improving STP - on average our customers achieve an STP rate of 91% - is that KYC and compliance teams can then focus their efforts on communicating with customers or on enhanced due diligence – rather than on every single new applicant.

When businesses are scaling fast, this kind of automation is a great benefit, because you can add volume into your compliance processes without needing to incrementally increase costs.

A solution with flexibility at its core

Financial services businesses, like yours, have bespoke and complex internal processes that they need to follow. So, you might be tempted to create your own solution, because, let’s face it, would an off-the-shelf solution be configurable enough for you, your unique requirements and what you need to achieve?

We’d suggest the answer is to look for a solution that isn’t off-the-shelf, but one that has flexibility at its core. This will ensure you can digitise the processes that are right for your business; your products; your customers; and your jurisdiction from day one, and, crucially, that you can then iterate and evolve them over time.

You might still be learning what the right digital compliance process looks like for your business. With a flexible solution you can learn what works, what could be better, where the efficiencies or savings might lie and submit a change request.

It’s not difficult or expensive to change your configuration, because of the Smart Policies we talked about. We expect our customers to make changes. We suggest changes to our customers in quarterly reviews. We want you to keep improving your version of PassFort, because then you’ll continue to love it.

Customers ask us to make 8 changes to their PassFort configuration each quarter.

PassFort customers request, on average, 8 changes to their configuration of the platform each quarter. These changes can include anything from a small refinement on a form to integrating a new data provider to save time and money on a particular check.

Change is hugely important in compliance and compliance solutions because you need to adjust to new risks, new regulation and launch new products. You have to be sure your compliance platform can change with your business.

Are you ready to commit to maintaining a solution?

The other thing you might want to do when thinking whether to buy or build is flipping the question.

If specialist RegTech solutions can’t meet your specific, complex compliance needs, do you really want to commit time, effort and development resource to trying to build such an intricate solution in-house? Bear in mind, your solution will never be finished either.

You will set the system up ready for day one, after 6 months to a year of development, and then you will immediately have to set about updating it to deal with the latest anti-money laundering regulation or because your firm has decided to expand into a new jurisdiction.

The commitment to DIY RegTech could be more than you bargained for.

Let’s show you PassFort – what have you got to lose?

PassFort has been designed to be as flexible, configurable and compatible as possible, so it works how you need it to; with the systems you need it to; and can be updated when you need too.

We would love to show you things like:

●      How the smart policy builder works

●      The way we can match your branding and user interface

●      The different data sets we can help you access

●      The integrations we have with leading data providers

●      How compliance tasks are assigned and escalated in PassFort

Above all, we would love to show you how PassFort could work specifically for your business. Get in touch with us any time and we can talk about what you want and need to achieve with your KYC solution.

We look forward to hearing from you!

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