KYC Technology:
New Regulations, Faster On-boarding & Compliance with Celent

Learn how global institutions are implementing rules-based FATCA compliance to manage complex customer due diligence.

To comply with the Foreign Account Tax Compliance Act (FATCA), global financial institutions and insurers must implement changes to their on-boarding, Know Your Customer (KYC) and tax operations, processes and technology.

Pega has built key FATCA compliance functionality into its Know Your Customer (KYC) solution, which offers a unified, global rules-driven platform for the management of KYC requirements, including FATCA, suitability, product- and country-specific due diligence requirements - all on one common platform. Pega streamlines key FATCA requirements, including managing complex relationships and underlying party driver data classification for US indicia, driving due diligence based on type and managing look-backs using auto-case creation and rules-driven processes. Pega's patented Build For Change® technology not only ensures global financial institutions are able to rapidly meet FATCA regulatory requirements but also new requirements as risks and regulations change.

  • Gain a global 360 customer view. A global customer profile allows the aggregation of data across accounts, geographies, lines of business, and complex direct/indirect relationships to ensure consistency and re-use in identification, customer classification, indicia changes and reporting requirements.
  • Ensure auditiability and time savings for FATCA classification. Unified case management and rules apply the right qualification rules based on US indicia of strong, medium and weak as well as manage the routing, decisioning and classification of customers as U.S., non-U.S. or recalcitrant ensuring faster on-boarding and compliance.
  • Rapidly complete historical look-backs. Automation of look-back management ensures streamlined and accurate historical look-backs for US party and underlying party identification, due diligence, classification and reporting based on indicia.
  • Rules-driven compliance on one global platform. Specialization by line of business, customer, regulation and product ensures faster on-boarding to KYC and FATCA rules based on lines of business, customer type, qualification, regulatory mandate and risk.
  • Simplify reporting and auditing. Integration with tax reporting systems and self-documentation that captures a complete audit trail of every system and user activity eliminate manual reporting tasks.
  • Gain unprecedented business agility. Pega's patented Build for Change® technology offers unparalleled business agility, allowing designated business users to rapidly create and modify rules in a controlled environment for immediate response to on-going changes in FATCA requirements, risk and new KYC regulations.

Learn more: Know Your Customer (KYC) data sheet


Customer Success

Unified Solution for KYC Cuts On-Boarding Time by 70%

For one of the largest global financial institution, Pega powers a unified KYC solution that serves thousands of customers and nearly 100,000 due diligence profiles across multiple lines of business. Seamlessly integrated with the bank’s on-boarding system, KYC requirements are displayed dynamically based upon risk rating, product and geography. The solutions has resulted in a 60% reduction in manual processing, 70% decrease in time for due diligence and on-boarding, and a 100% improvement in compliance controls.

Dynamic Application of KYC Rules Reduces Account Opening Time to Hours

A global banking and financial services company needed to reduce the 30+ days required to on-board customers because of KYC regulations. With Pega, the institution deployed a solution that delivers a complete view of the customer with dynamic rules applying the right regulations across lines of business and geographies. This ability to manage complex KYC rules across the globe and reuse existing due diligence has reduced cycle time for opening accounts to hours instead of weeks.

Pega’s Agile KYC Solution Streamlines Account Opening

Complex KYC requirements, multiple geographies and requests for the same due diligence were driving up on-boarding time for this prominent international financial services firm. As part of a Pega end-to-end sales solution, the firm has implemented Pega KYC to apply risk rating and due diligence rules dynamically based on country, line of business and product. The first iteration of this project was deployed in just 4 months, while providing the firm with the ability to re-use components on a global scale.