The landscape of financial services continues to evolve, and in this dynamic environment, maintaining robust Know Your Customer (KYC) procedures is crucial. To meet the ever-increasing demand for efficient compliance solutions, Experian has introduced a new offering designed to continuously monitor and evaluate customer data. This solution utilizes both internal and external data sources to alert financial institutions of any changes in data that might signal potential risks.
Financial institutions are increasingly under pressure to improve their compliance practices. The newly introduced Financial Crime Compliance Perpetual Monitoring solution by Experian offers a shift from manual periodic reviews to a more integrated approach, focusing efforts on complex and high-risk cases. This move follows experiments with several major banks and lenders, aiming to implement this solution across the industry within a year. Historically, tools like Automated Portfolio Monitoring (APM) have been in use at organizations like Lloyds Banking Group, which collaborated with Experian to develop them.
What Does the New Solution Offer?
The Financial Crime Compliance Perpetual Monitoring tool aims to automatically flag changes in customer data that may indicate risk, thus reducing the burden of manual checks. This streamlining allows financial institutions to allocate their resources more effectively toward intricate and high-risk scenarios. “Ultimately, our ambition is for Perpetual Monitoring to become the industry standard across the U.K. financial services industry,” remarked Grant MacDonald, director of FinCrime market engagement at Experian UK&I.
How Has Lloyds Benefited from This Collaboration?
Lloyds Banking Group, having used Experian’s Automated Portfolio Monitoring for some time, highlights a streamlined experience in conducting necessary checks. “APM has significantly reduced friction for our customers, streamlining touchpoints,” stated Tom Martin, business platform lead at Lloyds. This collaboration further emphasizes the utility of a perpetual monitoring system for KYC checks.
As financial services grow more accessible and fast-paced, the potential for financial crime expands, demanding more sophisticated compliance solutions. Recent reports have pointed out the obligatory need for vigilance among financial institutions, which improves competitive advantage in an environment where trust is key.
In another recent development, Experian expanded its identity verification capabilities by integrating Mastercard (NYSE:MA)’s technology into its Ascend analytics platform. This expanded service is set to assist over 1,800 Experian customers. Experian also bolstered its portfolio by acquiring NeuroID, incorporating behavioral analytics to combat AI-enabled fraud.
The rollout of Experian’s new solution could potentially elevate the standard of KYC processes across the financial sector. By focusing on high-risk cases and streamlining other processes, institutions may achieve a balance between operational efficiency and compliance demands. In this landscape, solutions like Experian’s perpetual monitoring could play a pivotal role in improving security and trust in the financial system.
