Best practices for KYC during M&A
Leveraging AI Digital Workers makes possible an entirely new and streamlined approach to KYC during M&A. It eliminates the need for the merging institutions to perform much of the traditional technology integration and manual data consolidation that require far too much time, additional labor, and special IT involvement.
Best Practice #1: Uplift to a single KYC process Since an AI Digital Worker can capture data from any system, regardless of its format or type (structured, semi-structured, or unstructured), the merging FIs can agree on a single KYC process. They know that the Digital Worker will deliver the necessary data to fulfill KYC rules and process requirements. As a result, whatever the highest standard desired for the KYC process is, FIs no longer need to compromise it for lack of data availability or staffing to manually handle it.
Steps to a single KYC process:
Establish KYC rules
Define the process
Match all data to the process
Elevate process to highest standard
Turn on Digital Workers to review all data from both organizations
Gain a KYC refresh in the process
Put data into any system (automatically).
Best Practice #2: Virtualize Data Consolidation Because AI Digital Workers can access both banks’ KYC system(s) easily, there is no need for operations teams to consolidate their data during the transition. Instead, the Digital Workers ‘speak with’ the disparate systems, digitize all information into data points, then bring those data points into the aggregation and analysis phases of the single KYC process. Exceptions are then singled out for humans in the loop to resolve, significantly reducing manual time and effort. By eliminating the need for specific data consolidation efforts, the FIs’ operations teams save valuable time and labor resources. They also avoid the need for a scripting project, which IT would normally need to undertake in order to move data between systems.
Best Practice #3: Ensure Data Quality by Digitizing QC Merging institutions can transform their KYC process by making it entirely digital. The transformation to digital begins with using automation to change how QC sampling is done. Instead of random sampling, the operations team can use confidence-based sampling wherein they leverage human-in-the-loop automation features so that people interface with machines to perform data quality assurance. Human-in-the-loop can also be leveraged to capture specific, fine-grained nuances that feed automatically into ML models and make them better through the normal course of QC checks. In this way, the FIs gain trigger-based human-in-the-loop QC, but also have a system that continuously gets smarter as the cases are worked.
The AI Digital Workers Focused on KYC during financial institution M&A
