Institutional Advisory

ABZ financial broker is engaged with UAE banks to assist in KYC remediation for their SME/Corporate Clients.

About KYC remediation and its significance:

Banks are sitting on large know-your-customer (KYC) and due diligence backlogs. Four steps can cut them quickly and improve the customer experience by ensuring remediation efforts are better aligned with business value and the potential risks each customer poses.

Four steps to ensure a risk-based KYC and due diligence remediation

-To manage both risk and value, segment customers more finely. Most banks expend disproportionate effort on customers who pose very little or no risk.

-Deploy self-service solutions that are risk-sensitive and carry minimal execution costs. Self-service should be the default option for customers providing KYC information. By automatically posing more questions to customers whose responses suggest higher risk, the burden on less-risky customers is kept to a minimum.

-Tailor and track remediation efforts at the individual customer level. This will inform required actions and provide operations, the board and regulators a clear view of how remediation efforts are faring.

-To quicken progress, make use of third-party data, external providers and artificial intelligence (AI). There are plenty of off-the-shelf solutions and data providers that can help quickly stitch together an integrated solution. AI can then accelerate learnings from these outputs.