In today’s globalised economy, Know Your Customer (KYC) compliance is an integral part of financial services operations, helping to ensure a stable and trustworthy financial framework in the face of emerging and evolving risks such as fraud, money laundering and other types of financial crime.
A proven and efficient KYC process can help ensure clients enjoy a smooth and rapid on-boarding process and relationship management, as well as give confidence in a bank’s ability to manage risk. However, as noted by Celent, a leading research and advisory firm focused on technology for financial institutions, many banks struggle with modernising their KYC processes due to a “patchwork of disparate, fragmented technology architecture”. This means relying on manual processes, high costs and operational risks, with an impact on the experience of the client. As a result, KYC is often mentioned as the number one pain point in a client’s relationship with its banks.
To meet this challenge, BNP Paribas has successfully implemented a global strategic platform, One KYC, that uses Artificial Intelligence (AI) and automation to drive efficiency in its KYC process.
Caroline Pez-Lefèvre, Deputy Chairwoman for BNP Paribas’ One Bank initiative, adds: “The new One KYC utility ensures that customer knowledge and information can be shared appropriately, giving us greater insight to our customers and ensuring we can best serve their fast-evolving needs on a global scale. It is a key lever for security and fluidity, and will allow us to adapt quickly to the evolving regulatory requirements.”
What is One KYC?
First implemented in 2018, One KYC aims to create a coherent repository of standardised, up to date, accurate and complete KYC data and documents, that can be shared and reused across the Bank’s business units and regions for all its corporate clients.
The platform serves numerous entities of the global financial Group, enabling the simple and more efficient on-boarding and re-boarding of customers that use services in different business units and geographies. This streamlines the customer journey, reducing points of contact and manual tasks required by the client. With One KYC, clients can expect the number of weeks needed to complete the KYC process to reduce significantly.
The tool uses AI to automatically improve data quality controls, which keeps its database reliable and enhances the verification process for each customer.
Denis Laplane, Deputy Chairman for BNP Paribas’ One Bank initiative and sponsor of the project, explains: “As part of our commitment to improving customer experience, we knew we needed to secure and to streamline interactions across the whole lifecycle of a customer relationship. Thanks to this global cross-business project, we have delivered a digital and a centralised KYC system that will transform the way we deliver for clients in years to come.”
A market-leading solution
The implementation of One KYC has been recognised by Celent at its 2022 Model Awards, which saw BNP Paribas named as Model Risk Manager 2022. The bank received the accolade in the category Legacy and Ecosystem Transformation in recognition of the platform’s innovative use of technology.
One KYC is a critical asset for the Bank to continue developing its client offering, as part of our 2025 Strategic Plan. It also represents a huge IT and operational success and, as such, we will continue to develop it and apply best in class practices for KYC, compliance and client service.
Boris Leblanc, Global Head of CIB IT & Operations