Capgemini announces perpetual ‘Know-Your-Customer’ sandbox for financial institutions

Capgemini has announced the rollout of a technology sandbox that offers financial institutions a sound framework to migrate from legacy, static Know-Your-Customer (KYC) processes and labor-intensive periodic reviews towards perpetual KYC (pKYC) and event-based reviews. A first of its kind, Capgemini has collaborated with multiple technology partners to orchestrate the integration of this architecture. The sandbox offers a safe and secure test environment for firms to visualize how they can transition to a pKYC process and demonstrate its effectiveness to senior management and regulators.

Capgemini’s enhanced portfolio of offerings in financial crime, risk management and regulatory compliance services, along with the news of its recent acquisition of Delta Capita BV, further strengthen the Group’s position as partner of choice for Financial Crime Compliance (FCC) solutions.

 Perpetual KYC provides an auditable, data-led and dynamic approach to alert firms automatically to material changes in a customer’s circumstances that could affect their risk profile. This enables a financial institution to re-assess its corresponding risk exposure to the customer, better achieving a state of continuous, real-time anti-money laundering (AML) compliance.

Meeting regulatory requirements is key to success in the financial services industry and requires the consolidation of data across internal systems and external sources. The novel sandbox model, developed by Capgemini, enables firms to test, refine, and scale best-in-class software in a controlled environment, ensuring a seamless transition while mitigating risks. Engineered to be flexible and modular in design, organizations can easily implement the sandbox across their respective cloud platforms and technologies of choice.

“Static KYC processes present opportunities for financial criminals to exploit gaps and weaknesses for money laundering and other fraudulent activities, creating a continuous risk factor for financial institutions. We firmly believe that perpetual KYC is the approach needed to protect financial institutions from undue risk, enforcement actions, and large fines,” said Manish Chopra, Global Head of Risk and Financial Crime Compliance at Capgemini. “The pKYC sandbox capability marks a significant advance for industry compliance, meeting regulators’ growing expectations of responsible innovation. It is an actionable measure for financial institutions to demonstrate how they are mitigating inherent risk exposure more effectively.”

“Financial institutions have a duty to not only understand their customer, but their customer’s customer too,” said Ivar Lammers, Global Head of Financial Crime Prevention for Wholesale Banking at ING. “As financial crime rapidly evolves, and pressure mounts on maintaining compliance, the traditional KYC models struggle to address real-world challenges. Perpetual KYC is the shift required to rapidly respond to customer behavior changes and drive smarter compliance. Capgemini’s pKYC sandbox is an impressive blend of visualizing the effectiveness of KYC processes in action and experimenting with new tools in a secure environment, all without risking customer data and optimizing infrastructure cost. It presents a significant opportunity for the industry to demonstrate to regulators excellence in achieving the critical requirements of real-time KYC.”

Key benefits of Capgemini’s new pKYC sandbox include -

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• A safe testing environment: a secure environment where new KYC processes, policies, or technologies can be tested without risking real customer data leakage or compliance failures.
• Best-of-breed solutions: integration of key components from best-of-breed RegTech solutions and accelerators.
• Real-time visualization: ability to visualize pKYC in action to gauge benefits and showcase the framework to regulators.
• Quantifiable business impact: rapid end-to-end testing of the tech stack and processes leading to much faster feasibility of the pKYC operating model and creation of the associated business case.
• Operational readiness: identifies operational bottlenecks and optimizes workflows to enable full-scale deployment with confidence.