Information silos constitute the biggest enterprise-wide challenge that securities-trading firms face when collecting know your customer (KYC) data, says Alana Dubinski, vice president and chief compliance officer (CCO) at Aon Hewitt Investment Management, during a video interview with FTF News.
Many firms have multiple lines of business that will need KYC data, and that’s where the problem starts, Dubinski says. The multiple business groups “are probably all asking similar questions but they might be doing it for the same client and retaining it on different platforms or different systems,” she says. “I think that’s a large obstacle for businesses; it’s largely inefficient.”
Another major efficiency challenge for most businesses is the amount of time it takes to onboard clients.
“Thomson Reuters did a study in 2017 where they identified the average time to onboard a client is about 22 days. That’s lost revenue,” Dubinski says. “So, the longer it takes to onboard a client — in that whole process before you can actually approve an account for trading or for implementation — is lost revenue.”
The KYC process also puts a strain on resources.
“Often these types of issues — in terms of collecting KYC — they’re highly intensive,” Dubinski says, adding that there are multiple touch points between the back office and the client before all the necessary data is collected. “It’s just very inefficient and may require a lot of people.”
Dubinsky was interviewed during FTF’s SecOps North America conference, Oct. 15-17, in Toronto. She took part in the “Getting to Know Your Customer Well” panels at SecOps.
Click on the image above to explore some of the steps a firm can take toward more efficient KYC data collection and sharing.
CREDITS:
Videographer: Jared Lorenz c/o Livingface Photography, Toronto, Ont.
Video Editor: Janene Knox
Interview conducted by Eugene Grygo, chief content officer, FTF News
Co-Producers: Sarah Hathaway, vice president, Financial Technologies Forum (FTF) and Eugene Grygo
Photography: Bard Azima c/o Livingface Photography
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