For financial institutions (FIs) undertaking a merger or acquisition, the onboarding of customers from the acquired institution and conducting KYC have traditionally posed a major challenge. As each institution will have its own KYC process and requirements, Operations teams struggle to consolidate the two FIs’ customer data and documentation where nothing slips through the cracks or slows new customer onboarding. However, with the introduction, and more importantly, the pre-packaged integration of several critical technologies, FIs can more effectively manage and mitigate risk and streamline KYC when combining those operations today.
This paper highlights the traditional core challenges to maintaining robust KYC during and following a merger or acquisition between two financial institutions and prescribes best practices for overcoming those challenges.