Continuous KYC from Accenture + Quantexa

Knowing your
customer is one thing.
Understanding
them is everything.
Continuous KYC from Accenture + Quantexa.
Introducing a new, dynamic risk assessment model.
An approach that combines solid knowledge of the
regulatory environment with cutting-edge tools to
give you an expanded view of your clients.
Copyright © 2020 Accenture. All rights reserved.

First established in rapid response
to new regulation, it’s hardly surprising
that the Know Your Customer (KYC)
function is seen as time-intensive,
laborious and frustrating. Customer
experience was never part of the
equation; the goal was to demonstrate
compliance at all costs.
But now we’re familiar with the
fundamentals, we can make KYC
so much more. The next step is bigger
than mastering efficiencies. It’s time
to integrate it with broader client
management strategies so that we can
greatly improve the KYC experience.
Turn compliance
into a customer
experience
opportunity
2

3
Rising Costs
Due to KYC and Customer Due
Diligence (CDD), compliance
spending is on the rise. 72%
of financial services firms are
targeting Compliance cost
reductions of >10% over the
next 3 years.* We also see
a loss of revenue, as lengthy
onboarding times drive
clients to go elsewhere.
Increasing Inefficiency
Ownership structures are
increasingly complex and
hide criminality, politically
exposed persons PEP and
sanctions connections.
The current model of periodic
reviews is resource intensive
and rarely results in a change
of risk rating.
Client Frustration
KYC checks can be repetitive
and often cause clients to
switch banks. Onboarding
is highly-manual, and with
limited automation and review
strategies, customers are
contacted multiple times
throughout. The result:
they vote with their feet.
The complexity of KYC has resulted in
skyrocketing costs, with little improvement
in effectiveness and client satisfaction.
*Data from the Accenture 2019 Compliance Risk Study
What needs to change?

Highly manual workload
No automated research
High manual collection process
Multiple hand-offs between
Ops / Risk Management (RM) / Client
High amount of false positives
The current situation
4
Handling times:
Retail / Domestic Small and medium-sized
enterprises (SME) / Corporates
Large Corporates
2–7 hours 7–18 hours 25–45 hours
 No integrated screening tools
 High manual investigation efforts
 Fragmented workflow
 Frequent changes to CDD standards
 Difficult to identify client
Ultimate Beneficial Owner (UBO)

5
The below diagram provides a high level overview of the current end to end
KYC process and highlights some of the key challenges faced by clients:
Current KYC reviews are manual and
based on a static periodic review cycle
Largely Manual Process
Adverse media
& name list screening
Collect info/docs
and assess gaps
DATA SOURCING
& MANAGEMENT
CASE
REVIEW
Distribute &
assign cases
Set-up KYC
record
Triggers
Onboarding
Periodic
CASE
GENERATION
Up to 20 iterations
Manual
construct
of
corporate
hierarchy
CUSTOMER NETWORK
BUILD & SCREENING
Acquisition of
external data
Manual google
search 30+ min.
Due diligence,
risk rating
and decision
OPS
RM
CLIENT
Re-work if data update
ENHANCED
DUE DILLIGENCE
Final
assessment
KYC/onboarding
decision
Business
acceptance
Acceptance / first time
pass rate < 50 %
Escalations
to compliance
OPS
RM
CLIENT

6
Continuous KYC
from Accenture
+ Quantexa
Introducing a new model
Accenture has partnered with Quantexa
to develop a dynamic client risk assessment
model for banks. Accenture’s knowledge
of the ever-changing regulatory environment,
combined with Quantexa’s contextual
decision intelligence platform, gives you
an ever-evolving view of your customer in
an approach we call Continuous KYC (cKYC).

7
Automated
Threat Monitoring
A shift from periodic
to event-based
reviews through
automated threat
monitoring. Low risk
changes are flagged
removing the need
for manual checks.
Dynamic
Risk Scoring
A renewed focus on
the behavioral and
transactional context
of clients. Constant,
dynamic risk scoring
that takes a data-driven
and risk-based approach
across all KYC and
CDD activities.
Unified
Network View
Link all related
entities into a single
dynamic network
of KYC profiles,
with automated
KYC data collection
and integration.
Simplified
Enhanced
Due Diligence
Monitor the entire
customer network
as generated and flag
any potential hidden
risk. Perform enhanced
due diligence based
on exceptions.
What does an evolving
view of your client look like?

8
*Data from Thomson Reuters 2016 Know Your Customer Survey,
https://www.thomsonreuters.com/en/press-releases/2016/may/
thomson-reuters-2016-know-your-customer-surveys.html
While financial firms’ average costs to meet
their obligations are $60 million according
to one survey, some are spending up to
$500 million on compliance with KYC and CDD.*
The costs and complexity of KYC are rising
and negatively impacting businesses.
cKYC lowers costs…
cKYC allows banks to
improve inefficiencies in
their KYC process through
automation, leading to a
significant reduction in
the cost of KYC.

Continuous KYC positively
impacts all elements of
the KYC process
cKYC elevates your business’ KYC function above
the current industry standard through improvements
in Case Generation, Data Sourcing, Screening,
Case Review and Enhanced Due Diligence.
cKYC future state
Case Generation
Data Sourcing and Management
Event-based model
Mostly manual
Mostly automated,
some manual
Manual data collation Automated data collation
Enhanced Due Diligence (EDD)
High number of
escalations
Simplified, exceptions
based escalations
Most cases require EDD Few cases require EDD
Case Review
Client contact
required in all cases
No client contact required
Most cases require
client contact
Few cases require
client contact
Customer Network Build and Screening
Screen at review
Customer / connected parties
generate their own alerts
Screened mostly periodically
Screened mostly through
portfolio monitoring
Time based cycle
Mostly periodic
Mostly event based,
some periodic
9

10
More tools,
better answers
When analytics,
search, data
visualization and
AI come together,
so too does a more
detailed portrait
of your clients.
More automation,
renewed trust
The client experience
is a happy one when
unnecessary back
and forth processes
are reduced.
More analytics,
stronger
connections
Bank managers
can build better
relationships with
clients when they
are able to draw the
right conclusions
from your data.
More data,
higher accuracy
Getting a precise
picture of your
clients is easy
when changes
in your data sets
are automatically
flagged.
And brings big benefits…

11
Accenture + Quantexa
Solving Industry
Problems
Co-creation of financial
crime capability
Strategic
Partnership

Accenture’s Financial Crime and Digital
group is able to bring a wealth of
experience in undertaking large scale
transformations in KYC, and is at the
forefront of industry transformation
at a number of clients.
Building on our experiences of process,
data and technology transformations, we
are able to bring the right skills, experience
and industry insight to drive significant
business outcomes for clients, leading to an
increase in operational efficiency, reduced
volumes and increased risk management.
12

Quantexa’s Contextual Decision Intelligence
(CDI) platform connects billions of data points
across internal and external data sources,
to provide a single contextual view enriched
with vital intelligence about the network of
relationships between people, organizations
and places.
Our Financial Crime and Risk monitoring solutions
provide the context needed to uncover hidden
risk more efficiently and with greater accuracy
than traditional systems, reducing false positives
by over 90% and empowering teams to focus on
real risk and make better operational decisions.
13

14
Final
Assessment
Escalations
to Compliance
Investigation
Identified
Risk
Customer
Outreach
Distribute and
Assign Cases
Set-up KYC
Record and
Pre-scoring
Review
Info/Docs and
Assess Gaps
Client Contact
and Screening
(Exceptions Only)
Due Diligence,
Risk Scoring and
Threat Detection
Automated
Client Contact
Screening
of Customer
Network
Onboarding
Request
Data
Collation
Entity
Resolution
Generate
Customer Record
and Network View
Data Attribute
Matching
Data
Standardization
Triggers
Onboarding
Periodic
AUTOMATED
PROCESS
REDUCED
MANUAL EFFORT
Reduced
Handling Times
Data & Customer
Context Driven
Improved Risk
Identification
Focused
Triggers
CASE
GENERATION
CASE
REVIEW
ENHANCED
DUE DILLIGENCE
CUSTOMER NETWORK
BUILD AND SCREENING
DATA SOURCING
AND MANAGEMENT
Our process

15
Automated Customer
Data Collation
Build a single 360 degree
view of the customer.
Automatically search
external and internal
data sources to identify
all information available
about the customer.
Entity Resolution,
and Network
Generation
Resolve the entity
on external sources,
identify any hidden
relationships and generate
improved accuracy
from screening results.
Automated
Client Contact
Outreach via
client‘s preferred
contact channel
and servicing
portals to collect
and update
information.
Advanced,
Accurate
Analytics
Advanced data
analytics to inform
risk scoring and
changes to known
client information
to accurately trigger
KYC reviews.
Improved
Triggers
Reduced trigger
volumes and only
focused on relevant
cases where customer
risk has changed.
More Effective
Case Review
Reduce manual processes.
The data collated before
a case is triggered is
presented, and reviews
no longer require
extensive data gathering
and multiple back and
forth with the client.
Effective
Enhanced
Due Diligence
We use risk scores
and network graphs
to simplify enhanced
due diligence and
identify financial
crime risks, escalating
them as needed.
Our solutions

16
Tailored Design
Every journey to cKYC is
unique, so we don’t roll
out a standard “off the shelf”
framework. We design our
solution around your policy,
preferred data sources
and overall strategy.
Self-sufficient
Technology
New tech shouldn’t clash
with the old. Our open
architecture tools can be
easily integrated with your
existing stack.
End-to-end
Transformation
Our approach covers the
entire compliance process,
including your people. We
provide upskilling in data
and analytics, change
management and risk
advisory services.
How we work with you

17
Phase 2: Tailored
Solution Design
Client specific solution designed
to gather required KYC information
from preferred data sources.
Quantexa solution connects
to client’s preferred internal
and external data sources.
Phase 3: Pilot
Deploy of Tailored Continuous
KYC solution to a pilot population.
Measure and quantify benefit of
deployment to pilot population.
Phase 4: Test
and Improve
Gather machine intelligence
(MI) data coverage metrics and
identify areas for improvement.
Introduce further data sources
to allow for iterative improvement
in accuracy of risk events, better
assessment of materiality,
and enhanced investigation.
Phase 5: Deploy to
entire KYC population
Connect to further data sources and
use other techniques like inference to
gather required KYC information for
other customer segments or countries.
Deploy tailored continuous KYC
solution design to wider population.
Phase 6: Continual
Risk Management
Investigations driven by a range
of ‘triggers’.
MI automates most decisions
with specialized human input
for key risks only.
Improved customer experience,
reduced workload and better
risk control.
Phase 1: Current
State Assessment
Understand client end-to-end
KYC process today.
Make sure client is able to
support capabilities required
to implement Continuous KYC.
The journey to cKYC

18
Ready to begin? Get in touch.
Andy Frost
Europe, the Middle East
and Africa, Quantexa
Mark McNerney
Global Alliances
Director, Quantexa
Derek Brown
Americas,
Quantexa
Shaun Mathieson
Asia Pacific,
Quantexa
Heather Adams
Managing Director,
Risk Resilience Lead,
United Kingdom & Ireland
Archit Chamaria
Senior Manager,
United Kingdom & Ireland
Sapan Dogra
Managing Director,
Applied Intelligence
Adam Markson
Managing Director,
Risk Lead, United Kingdom
& Ireland

19
Continuous KYC by Accenture + Quantexa
About Accenture
Accenture is a leading global professional services
company, providing a broad range of services in strategy
and consulting, interactive, technology and operations,
with digital capabilities across all of these services.
We combine unmatched experience and specialized
capabilities across more than 40 industries—powered
by the world’s largest network of Advanced Technology
and Intelligent Operations centers.
With 509,000 people serving clients in more than 120
countries, Accenture brings continuous innovation to help
clients improve their performance and create lasting value
across their enterprises. Visit us at www.accenture.com
Disclaimer
This presentation is intended for general
informational purposes only and does not
take into account the reader’s specific
circumstances, and may not reflect the
most current developments. Accenture
disclaims, to the fullest extent permitted
by applicable law, any and all liability for
the accuracy and completeness of the
information in this presentation and for
any acts or omissions made based on such
information. Accenture does not provide
legal, regulatory, audit, or tax advice.
Readers are responsible for obtaining
such advice from their own legal counsel
or other licensed professionals.

Continuous KYC from Accenture + Quantexa

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