How to speed up processes without losing control
More and more banks are automating their KYC and AML onboarding processes. While this speeds up these labour-intensive processes, it also makes them less transparent. Systems are increasingly supporting decision-making or making it (partly) automatic. It must remain clear who is responsible and how the case was assessed.
We answer 3 questions:
- Why does automation without governance pose a risk in KYC (Know Your Customer) and AML (Anti-Money Laundering)?
- How do you maintain control over decisions and risk assessments?
- How an asset manager has implemented governance in practice. Read the case study
The downside of KYC and AML automation
At many financial service providers, customer onboarding is now largely digital. Systems automatically retrieve public customer data and generate risk scores based on predefined criteria. While all these automations speed up the process, they also make it more complex and less transparent.
The necessary information is available, but the big picture is often missing. As a result, teams make decisions in different systems, handle exceptions in between, and often only complete documentation afterwards. And not always using the same criteria. The result is fragmented decision-making and a lack of clear structure.
In KYC and AML onboarding, control means that every step is traceable: from initial customer identification and risk classification to escalations and reassessments. It must be clear who made a decision, based on what information and documents, and according to what criteria. This requires governance that is not separate from the process but built into it.
When regulators assess the process, this vulnerability becomes apparent. They expect insight into how an assessment was reached and who was responsible for the decision. Without clear documentation and accountability, the foundation for justifying decisions is missing.
Centralise the decision-making process
At the same time, control does not arise automatically when processes are digitized. Automation speeds up operations, but it does not automatically take over responsibility, decision-making, or coherence. That is the difference between an efficient process and a controlled process.
That is why automation requires more than just a workflow. It must be clearly defined who is authorised to make which decisions, what information must be consulted for this purpose, and the controls in place. The control and validation process must not depend on manual coordination; rather, it must be an integral part of the process design. Human judgment—human-in-the-loop—remains a fixed component of the process. Teams must record exceptions in a centralized, visible, and traceable manner rather than outside the system.
Additionally, decision-making must not become scattered across separate applications. When teams use data from multiple systems, a central process layer is needed to ensure consistency. This maintains an overview, even when regulations change—not as an after-the-fact correction, but as part of the process itself.
This way of working serves as the basis for our approach to complex compliance processes.
Case: Verification in the onboarding process
LINKIT redesigned the KYC and AML onboarding process for a major asset manager using the low-code platform OutSystems. This was a familiar issue: many financial institutions face it as well. We didn’t solve it by replacing existing systems, but by organizing decision-making and process steps within a single digital environment. As Luuk, Account Executive at LINKIT, emphasizes:
“Customer data must be kept up to date, and alerts from screening and monitoring must be immediately visible. This ensures that the risk profile remains under control.”
The application guides the onboarding process step by step:
- Digital customer registration and initial screening, during which customer data is automatically retrieved and processed into the file
- Risk classification based on fixed criteria, including mandatory validations and checks
- Built-in dual-control principle, as a fixed step in the workflow
- Central recording of decisions and exceptions, automatically linked to the responsible employee
- Integrations with core banking and screening tools, ensuring files always use up-to-date data
- Continuous monitoring and alerting, with deviations immediately linked to the customer file
The solution was developed using OutSystems and fits within the existing IT environment. This allows core systems to remain in place while teams adapt or expand assessment criteria and process steps. In this way, they can quickly implement new laws and regulations while remaining agile.
“This is how banks, insurers, and asset managers—despite all the regulations—maintain their flexibility and strengthen their position.”
Read the full case study by clicking this link.
Maintaining control in automated KYC and AML onboarding
How can you make your KYC and AML onboarding processes future-proof?
Automated processes require more than just efficiency. Especially in the financial sector, demonstrable control is essential. Schedule a no-obligation consultation and contact our experts.
