Always-On Compliance: Perpetual KYC

As costs and compliance requirements around customer due diligence have mounted up, so has demand for automated solutions. But these, too, have struggled to keep Know Your Customer operations up to speed and ahead of regulatory changes and risk exposures.

Enter pKYC – perpetual Know Your Customer – a relatively new technological iteration for continuous monitoring and updating by leveraging real-time data and advanced analytics, and in the process reducing reliance on labor-intensive periodic reviews while improving risk detection and enhancing the customer experience.

Commenting on a warning from OpenAI chief executive Sam Altman that artificial intelligence threatens to defeat security measures and controls, longtime financial technology trend-watcher Chris Skinner said in a blog that facial recognition and voice prints will have to be rethought.

“The answer is always-on KYC compliance checks, or perpetual KYC,” Skinner wrote. To verify that contacts are with humans and not with bots, and to ensure that “every touch and call is real” and not a deepfake, “is quite a challenge, but always-on authentication, verification and...