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KYC processes costs set to increase, Consult Hyperion study reveals

Thursday 21 February 2019 09:58 CET | News

The total cost of KYC processes for financial institutions is set to increase by 20% in the upcoming period, a report from Consult Hyperion has revealed.

Business onboarding is predominantly a manual, paper-based process, which is costly for the bank and slow for the customer. According to interviewees’ insights, new regulations, such as AMLD5, are only adding complexity. The average time to onboard a business banking customer has increased to 32 days.

The report breaks down the factors that drive up costs and reduces speed into five challenges that financial services businesses are facing:

  • The onboarding process needs to fit businesses of very different sizes

  • The ability to quickly and accurately identify and verify who is behind a business

  • The limitations of third-party database checks

  • The requirement for additional documentation

  • The hidden costs of ongoing due-diligence

“The five challenges of business onboarding and customer due diligence” was produced in collaboration with identity verification provider HooYu, and is based on insight gathered from fintechs and retail banks.


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Keywords: Consult Hyperion, onboarding, KYC, digital identity, banking, identity verification, due diligence, HooYu, report
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