Professional Documents
Culture Documents
Robotic Process Automation Aml Kyc PDF
Robotic Process Automation Aml Kyc PDF
1
https://globenewswire.com/news-release/2015/03/19/716638/10125555/en/IT-Robotic-Automation-Market-to-Reach-US-4-98-Bn-by-2020-Globally-and-is-forecast-to-grow-
at-60-5-CAGR-from-2014-to-2020-Transparency-Market-Research.html
2
http://cw.com.hk/news/robotics-automation-key-gartners-top-10-predictions
Every FI often asks one question – why do costs. It is an ideal candidate for a field like to help collect and access information
we need robots in business processes? compliance that is predominantly rule-based from multiple source systems to support
Many business processes in every FI are and evolves constantly. human agents servicing client calls.
time-consuming, repetitive, and prone to Another example would be processing a
There are different styles of automation that
errors. In addition, a majority of the FIs are change of address on multiple systems.
an FI can adopt:
facing pressures with increased scrutiny from While the initial checks / data can be
federal and state regulators. According to • Semi-automated processes: Automate a entered by humans, bots can be used to
a survey conducted across Europe and the part of the process by adopting a model process customer information changes
US covering more than 100 senior banking of humans and bots working together across multiple source systems.
officials, one in every five banks has made to complete end-to-end tasks efficiently.
For example: customer service desks in • Fully automated processes: This style of
a substantial increase in spending around
any FI have service agents navigating automation would ensure that there are
compliance requirements⁴.
through multiple systems to view no human touchpoints in the process. For
RPA is an easy-to-deploy solution that
customer information whilst interacting example: updating customer contracts
can help reduce manual tasks, streamline
with the customer. Bots can be used and multi-format message creation.
workflows, improve compliance, and reduce
3
http://blogs.nasscom.in/seizing-the-robotic-process-automation-rpa-opportunity/comment-page-1/
https://www.sas.com
4
Rising costs of AML / KYC Plethora of regulations to comply with Substantial reliance on manually intensive
compliance and steep fines for non-compliance processes
The average financial firm Since 2010, about US$300 billion in fines Many FIs use manual intervention in routine
spends US$60 million per year were paid by FIs towards violations of Bank processes such as processing structure and
on KYC, customer due diligence Secrecy Act (BSA) and AML regulations unstructured data. Cost of integrating systems
(CDD), and client onboarding. including US sanctions requirements. and reliance on traditional methods are some of
(Source: Thomson Reuters, 2016 (Source: http://www.capco.com/insights/ the reasons why these processes are yet manual
Know Your Customer Survey) capco-blog) and have escaped automation. It is due to these
reasons that automation is a compelling case in FIs.
RPA as a solution
Defining opportunities for robotics documents usually include govern- used to gather additional information
automation starts with an assessment ment-issued ID proofs which are about the customer from public
of processes and identification of the standard across a particular geography. domain / databases, which would
following characteristics: With RPA, an FI can automate the be beyond what the customers
• Manual processes activity of identifying and entering would submit.
• High-volume work customer identification information Compiling customer information:
• Repetitive tasks into the CRM. Often banks have customer
• Rule-based decisions with minimal Validating existing customer information spread across multiple
deviations information: RPA can be used to systems depending upon the services
• Probability of error perform validation of customer sought by the customer, e.g., savings
The following are some of the information (structured / unstructured) account, brokerage, among others.
opportunities for RPA in the financial by accessing databases, extracting RPA can be used to compile customer
services industry: data from documents, collecting social information across disparate systems to
media information, merging data from give a holistic view of customer data.
• KYC processes – Typically, in most FIs,
different places, and filling in forms. Banks can then deploy promotional
the costs of running these programs
Customer information gathering: bots to send automatic mails, SMS
can be significant. According to a recent
Regulations require FIs to collect campaigns of their products and
survey conducted by Thomson Reuters,
information from customers at the time services, and other requirements,
approx. US$52 million a year (for a bank)
of onboarding and then subsequently thereby reducing marketing
is the average spend on KYC compliance
on a regular basis. This includes details expenses significantly.
and for some banks up to approx. US$384
million on KYC compliance and Customer about the customer, credit worthiness, Customer screening: This activity
Due Diligence (CDD). In addition to the business / activities the customer is involves the office of foreign assets
huge costs, compliance divisions across involved in, identity information, etc. control (OFAC) screening, politically
FIs have grown in size with compliance This is usually done by administering exposed persons (PEP) checks, and
teams staffed anywhere from 150 to a questionnaire to the customer and negative news screening. An integral
1,000+ full-time equivalents (FTEs). Some collecting the data. The data collected part of the KYC process is to screen
of the traditional manual activities that then has to be regularly updated and customers against government,
are good candidates for RPA include: tracked for any changes. Information internal, and external watch lists
can be received in the form of paper, to identify any politically exposed
Setting up customer data: This is a PDFs, etc. There are challenges in personnel, negative / adverse news.
manual activity where the analyst refers managing this information, updating This is done for both new and existing
to the uploaded / scanned customer it, and keeping track of future changes clients of the bank. This process can
identification documents and enters as the process is labor-intensive and be automated by the use of RPA as the
key customer information into the prone to errors. RPA can be used here information (i.e., fields) to be verified
customer relationship management to gather, input, and process structured from customer information against
(CRM) system. Customer identification and unstructured data. Bots can also be these databases is standard.
Sl.
Opportunity for RPA Related benefits
No.
Enhanced accuracy Improved speed Increased staff Refined audit trail with Increased time for
Use case
and quality of operations productivity accurate information strategic tasks
Validating existing
1
customer information
Documentation
2
gathering
Customer information
3 NA NA
gathering
Compiling customer
4 NA NA
information
5 Customer screening
6 Customer servicing
Regulatory monitoring
7 NA
and data collection
8 Risk assessments
Account closure
9 NA
processing
Conduct a
Conduct a detailed
diagnostic current assessment, RPA design Design the target Test the solution
state process monitoring, and and build operating model before launch
assessment sourcing
of tools
Set up a
Design process governance with
Identify RPA Perform RPA the right team to
and RPA
opportunities automation pilot continuously
integration road
map monitor the
solution
There is a need to review RPA 1. Level of satisfaction by the users 4. Changes required to improve
implementation post deployment to including specific success factors effectiveness of the tool
ensure that they align with expectations. 2. Features that are used frequently and 5. Evaluate if adequate training was
This review should address the following ones used infrequently imparted on a timely basis to the
considerations: 3. Assess the extent of benefits delivered concerned users and stakeholders
compared to initial estimates
Kasmera Shah
Sr. Consultant, Risk and Compliance Practice, Financial Services Domain Consulting Group, Infosys
Kasmera has over 11 years of consulting experience in governance risk and compliance (GRC), having worked with
companies, such as i-flex consulting, Ernst & Young, Deutsche Bank, and Infosys BPO.
She has managed and led several projects in GRC consulting [particularly AML, KYC, communication and trade
surveillance, and operational risk management (Basel II implementations)] across global markets such as the
US, Australia, UK, Canada, and Latin America. She is also experienced in the forensic investigations space which
includes Foreign Corrupt Practices Act of 1977 (FCPA) and UK Border Agency (UKBA) compliance reviews.
She can be reached at kasmera.shah@infosys.com
References:
1. https://globenewswire.com/news-release/2015/03/19/716638/10125555/en/IT-Robotic-Automation-Market-to-Reach-US-4-
98-Bn-by-2020-Globally-and-is-forecast-to-grow-at-60-5-CAGR-from-2014-to-2020-Transparency-Market-Research.html
2. http://cw.com.hk/news/robotics-automation-key-gartners-top-10-predictions
3. http://blogs.nasscom.in/seizing-the-robotic-process-automation-rpa-opportunity/comment-page-1/
4. https://www.sas.com
© 2017 Infosys Limited, Bengaluru, India. All Rights Reserved. Infosys believes the information in this document is accurate as of its publication date; such information is subject to change without notice. Infosys
acknowledges the proprietary rights of other companies to the trademarks, product names, and such other intellectual property rights mentioned in this document. Except as expressly permitted, neither this
documentation nor any part of it may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, printing, photocopying, recording, or otherwise, without the
prior permission of Infosys Limited and/or any named intellectual property rights holders under this document.
Stay Connected