KYC challenge: Shortage of skilled KYC personnel

Know Your Customer (KYC) has turned out to be a lot more burdensome and costly than anyone in the financial services industry could possibly have anticipated when the first Anti-Money Laundering regulations came into force. We have identified multiple KYC challenges that financial institutions (FIs) are facing today. One of them is: Shortage of skilled KYC analysts and compliance personnel

Which we will explain below. 

CoorpId Team

Shortage of skilled KYC analysts and compliance personnel

According to a study carried out by KPMG in 2021 around 15% of the total workforce of the four largest Dutch banks is involved in KYC and compliance related activities and this percentage has only increased since then. FIs are being confronted with a severe shortage of skilled KYC analysts and compliance personnel resulting in huge backlogs in Customer Due Diligence reviews. Many banks are having to call in CDD remediation support to reduce their backlogs and remain compliant. Outsourcing manual and low-skilled work in connection with KYC to low-wage countries is also becoming more and more difficult and costly. Operational costs in connection with KYC compliance are continuing to rise exponentially as a result.

We have identified five KYC challenges that Financial Institutions are facing today. If you work for a Financial Institution, do our KYC Challenges Quick Scan and gain insight into how your organisation is dealing with these challenges.

The future of kyc requests

More and more FIs are starting to realise that throwing more people at the problem is not the answer. The way forward is streamlining the whole KYC process by means of smart digital solutions which will involve an increase in capital expenditure in the short term but which will reduce operational costs in the long run and reduce the risk of huge fines being imposed for non-compliance.

Interested in understanding more about the KYC challenges banks and financials institutions face? Download our whitepaper.

Negative Customer Onboarding Experience

Click here to read more about this bottleneck

Customer Outreach Friction

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Rapidly changing and increasingly stringent regulatory requirements

Click here to read more about this bottleneck

Adopting a new approach to KYC: perpetual KYC

Click here to read more about this bottleneck

CoorpID is a digital vault
for storing and sharing KYC information

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We are happy to announce that CoorpID is now part of Encompass Corporation, the global provider of real-time digital Know Your Customer (KYC) profiles. To explain how this acquisition fits CoorpID's strategy, see the video message of our CEO, Job den Hamer and the press release.