Fenergo’s 2023 KYC Banking Trends Report has highlighted significant challenges faced by US investment banks in their efforts to mitigate financial crime and comply with regulations. The survey, which involved top-level executives across the US, revealed that 51% of respondents lost clients due to slow onboarding processes, underscoring operational risk as a top concern. Although there was an improvement in KYC review execution time, dropping from 117 to 82 days per client, investment banks are grappling with a reduction in staff (-12%) and limited budget allocations.
Stella Clarke, Chief Strategy and Marketing Officer at Fenergo, emphasized the resource constraints within risk and compliance departments, citing layoffs, outsourcing, and talent retention issues. She highlighted the need for investment banks to digitally transform AML/KYC compliance, transaction monitoring, and onboarding procedures to optimize client experience and secure relationships.
The report also identified challenges related to legacy architecture (44%) and revenue growth targets (39%), hindering tech investment among banks and impacting compliance and risk officers’ efforts. Transaction monitoring systems, known for producing high false positive rates, emerged as a persistent hurdle.
Rory Doyle, Head of Financial Crime Policy at Fenergo, addressed the complexities faced by investment banks, including regulatory changes by bodies like FinCen and adaptations to reforms outlined in the Anti-Money Laundering Act of 2020.
The global insights from Fenergo’s report revealed a 14% decrease in KYC taskforce numbers since 2022, with the average cost for a single KYC review surging by 17% to $2,598. The report surveyed 1,164 executives across global investment banks, showcasing the challenges and strains on resources within the industry. Fenergo provides comprehensive Client Lifecycle Management (CLM) solutions to digitally transform client journeys, ensuring regulatory compliance and monitoring throughout the client lifecycle.
Read the full report here.
By FCCT Editorial Team freeslots dinogame telegram营销
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