Financial Crime Risk Management Systems: Know Your Customer: Market Update and Vendor Landscape, 2019

Financial institutions (FIs) have long sought a ‘single view’ of their customers that enables analysts to access all the relevant information about an individual in one place. For many, a universal single view across all operations remains beyond reach, but a more integrated customer view – one that unifies pertinent information into a single-access system and interface – is now achievable.

Know Your Customer (KYC) is an entity-centric process that requires and produces large volumes of information on each customer. As such, it can form a useful foundation on which to develop an integrated view, serving not only financial crime compliance but other areas of the business too, in areas such as credit risk and customer relationship management. 

But achieving the single view will require careful thought and planning. To set its scope and design, FIs must consider the different KYC requirements of each business line, and develop a realistic scope and a straightforward data storage architecture. The roles of components – and services – in this will also be key.

For vendors hoping to sell into this evolving market, integration should be a top priority, as should deepening their services capabilities and – where feasible – augmenting their solutions through partnerships with complementary vendors. 

To explain the structure of the market this report uses Chartis’ RiskTech Quadrant®. The RiskTech Quadrant® uses a comprehensive methodology of in-depth independent research and a clear scoring system to explain which technology solutions meet an organization’s needs. The RiskTech Quadrant® does not simply describe one technology solution as the best risk-management solution; it has a sophisticated ranking methodology to explain which solutions would be best for buyers, depending on their implementation strategies.

In this report we feature the following vendors of KYC solutions: Accuity, AML Partners, Appway, Arachnys, BAE Systems, Bureau van Dijk (a Moody's Analytics company), Equiniti, Fenergo, Fiserv, GBG, IBM, IHS Markit, iMeta, InfrasoftTech, Know Your Customer, KYC Global Technologies, LexisNexis Risk Solutions, Manipal Group, NICE Actimize, Onfido, Oracle, Pegasystems Inc., Pitney Bowes, Quantexa, RDC, Refinitiv, SAS1

We aim to provide as comprehensive a view of the vendor landscape as possible within the context of our research. Note, however, that not all vendors we approached responded to our requests for briefings, and some declined to participate in this research.

1  Note that references to specific vendors within the text of this report do not constitute endorsements of their products by Chartis.