Encompass unveils pKYC maturity model

Encompass Corporation has recently introduced a perpetual Know Your Customer (pKYC) maturity model, which aims to set a new standard for regulatory compliance to combat financial crime. The model has been developed by the pKYC Advisory Board, a group consisting of representatives from global banks and trusted data, technology, and consulting partners. It aims to evaluate financial systems and assess their readiness to identify and prevent financial crime by placing them in a pKYC framework.

pKYC is a desirable state for many in the banking industry, as it uses automation technology to detect risk more accurately and quickly, while also increasing operational efficiency without the need for more headcount or time commitment. Typically, financial institutions re-evaluate customer data every one, three, or five years, depending on the level of risk, leaving the door open for undetected activity to occur over long periods.

The pKYC maturity model evaluates financial institutions in five core areas: Policy, People, Process, Data, and Technology. These factors are then further broken down into subcategories and assessed against the four stages of KYC: Manual KYC, Early Automation, Mature Automation, or pKYC. This provides a benchmark to determine the institution's readiness for pKYC.

Encompass is providing banks with the means to assess their readiness for pKYC, facilitate discussions among stakeholders, and evaluate the progress of their transformation journeys. They are offering advice and technology solutions to expedite the process. According to Howard Wimpory, KYC Transformation Director for Encompass, financial institutions need to adopt automation technology to avoid undetected financial risks, comply with regulatory requirements, and protect themselves and society against financial crime.

Encompass has also released an industry whitepaper titled Planning your journey to perpetual KYC, which offers a comprehensive understanding of pKYC and the core components necessary to achieve this goal.