Money laundering is a serious global issue, and KYC compliance management is critical to the fight against it. The right software can make all the difference in your business' compliance management program.
A growing number of businesses worldwide are implementing Know-Your-Customer (KYC) compliance management software in their business models—and for a good reason. As per a report by Refinitiv, these innovative digital technologies have helped identify financial crime.
However, lots of KYC compliance software are available on the market today, many of which can be confusing to decipher and shop around for. Here are a few tips to help you choose the best compliance management software for your business needs.
How to Pick the Best Compliance Management Software
Audit your processes
By taking a close look at your internal and external data, you can identify gaps in your compliance efforts. From there, you can select software that will help you close those gaps and improve your overall compliance posture.
Check compliance specifications
Checking compliance specifications will help ensure the selected software can properly meet your organization's needs and help you avoid any potential problems.
Here are a few things to keep in mind when checking compliance specifications:
- Make sure the software can handle the volume of data and transactions your business processes daily. KYC compliance management software needs to be able to scale up or down as needed, so it's important to find one that can accommodate your current and future needs.
- Confirm that the regulatory compliance management software integrates with your existing systems and infrastructure. This will make it much easier to deploy and use and will minimize any disruptions to your business operations.
- Ask about the vendor's customer support options. As highlighted in the article by Project Management Institute, vendors are critical to your company’s success.
Research potential solutions
When it comes to KYC compliance management, the best thing you can do is research potential solutions. This way, you can find the software that best suits your needs.
Here are some factors to consider when researching potential solutions:
- Make sure the software is compatible with your existing systems.
- Be sure the KYC provider has the possibility to give you some testing before you integrate.
- Consider your budget and what features you need before narrowing down your options.
- Get in touch with customer support to see how responsive they are.
- Request a demo of the software to get a better idea of how it works.
By taking the time to research potential solutions, you can be confident you're choosing the best KYC compliance management software for your business.
Have a launch plan ✅
Having a launch plan in place when choosing compliance software is the key to ensuring alignment among employees. And ERP systems can be a great help in this regard, providing a centralized platform for communication and training.
By having a communication and training plan, you can ensure that everyone is on the same page when using the software and understanding its features. You can also avoid any confusion or misunderstandings down the line. Plus, this will allow you to get the most out of your investment in the software by ensuring that everyone knows how to use it properly.
To help you with your launch plan, take a look at some ERP system examples.
Compare systems
By taking the time to compare systems and narrow down your options, you can find the best KYC compliance management software for your needs.
To compare systems, start by looking at the features each one offers. What kind of data does it collect? How does it help you manage that data? Does it offer any features that would be particularly helpful for your business? Once you've looked at the features, also consider things like ease of use and customer support.
Once you've compared systems and narrowed down your options, it's time to pick the best one for your business. Consider your budget and what you need from the software. Then, make your decision and get started with implementing it in your business.
What to Look For
Some core capabilities to look for in compliance management software regardless of the industry include:
Deployment
When picking KYC compliance management software, consider the software's deployment capabilities. Most compliance software can be deployed on-premise or in the cloud. There are advantages and disadvantages to both deployment methods.
On-premise software is installed and run on a company's own servers. This gives the company more control over the software and how it's used. However, it also requires the company to have its own IT staff to manage and maintain the software.
Cloud-based compliance management software, on the other hand, is hosted by the vendor. The vendor manages all updates and security for the software. This frees up the company's IT staff, but it also means that the company has less control over the software.
Ultimately, the choice of deployment all depends on your preference and use.
The automated change management process
An effective automated change management process can help financial institutions keep pace with changing KYC compliance requirements, reduce operational costs, and improve customer satisfaction.
If you’re aiming to improve your change management process, look for a solution that provides the following capabilities:
- Quickly and easily update compliance rules and policies
- Automatically distribute updated rules and policies to employees
- Track employee compliance with updated rules and policies
- Generate reports on compliance status
Automated reporting
To streamline your compliance management process and ensure you’re always up-to-date on the latest regulations, it’s important to choose software with automated reporting capabilities. This way, you can focus on other aspects of your business while the software takes care of generating reports on your behalf.
Some things to look for in software with automated reporting capabilities include the ability to generate real-time reports, schedule reports in advance, and customize report settings. Additionally, make sure the software is compatible with your existing systems and can easily integrate into your workflow.
KYC compliance management capabilities
Above everything else, your compliance software should have KYC compliance management capabilities.
The first capability to look for is the ability to integrate with your current systems. The software should be able to interface with your CRM such as the one in this Pipedrive review, ERP, and financial systems you currently use. This will make it easier to manage customer data and avoid duplication of effort.
Another important capability to look for is the ability to automate compliance-related tasks. The software should be able to perform identity verification, document verification, and other tasks related to KYC compliance. This will save you time and improve accuracy.
Summary & Takeaways
According to a report by PR Newswire, the global compliance platform market size is projected to reach $1881.9 million by 2028. With its growing use and adoption, it’s essential to pick the best KYC compliance management software that will fit your business needs. The right software will save you time and money while keeping your customer data safe. So, do your research and ask around to find the best solution for your company.
Surely, you will find a KYCAID that is confidently moving aside some big names and won its clients with:
✅ Quality — Proprietary compliance system and qualified legal specialists to reach supreme results.
✅Security — Best industry security standards confirmed by ISO certification and regular security audits.
✅The swiftness of automatic verifications — Instant documents and selfie verification and the highest possible SLA for manual checks.