Compliance and implementation of KYC policy

How our team helped the bank minimize the risks associated with potential fraud activity.

Customer

An international commercial bank that offers a wide range of standard and modern banking services. It serves more than 2,3+ million customers.

About the project

KYC — Know Your Customer

This is the process of identifying and verifying the customer's identity, in which a number of control measures are applied to avoid commercial risks in the relationship with the counterparty. For the bank, this process contained a lot of tasks related to:

• risk management;
• regulatory compliance;
• anti-money laundering (AML);
• internal regulations.

Challenges

1. A lot of time and resources are spent manually checking customers, employees, and partners.
2. There is no high-quality monitoring system that is constantly updated and promptly provides new information.
3. Uncontrolled checks from different divisions of the bank in the paid resource, leading to spontaneous
   costs for such operations.
4. Reputational risks associated with cooperation with fraudsters, due to not receiving updated information on counterparties.
5. The bank's financial losses — bad loans — because the bank did not detect fraudsters at the verification stage.
6. Lack of prompt response to negative changes in the customer's history.

Solutions

01

We have created a single database that is updated in a timely manner. It contains all the information about the audience segment the Bank was interested in.

02

We have implemented Camunda, which became the orchestrator of all banking processes. Using the DMN engine, we also implemented scoring and decision-making.

03

We have created a user-friendly interface that can be customized according to the needs of the department involved in the checks.

Results

• As a result of KYC implementation, the bank's customer and staff verification process has been accelerated by 20 times. The costs of access to information have been reduced.
• Our client has received a transparent, automated, and predictive analysis of everyone he interacts with. The bank also got operational control over the entire customer base, which is regularly updated.
• The number of employees involved in the verification process has been reduced due to automation.
• The number of bad loans decreased by 20%.
• The risks associated with cooperation with potential fraudsters have been minimized.
• Fines from the NBU (National Bank of Ukraine) decreased by 30% due to minimized compliance risks.