French IT services and consulting company Capgemini has announced an industry-first with the release of its perpetual KYC (pKYC) sandbox.
According to Capgemini, this innovative tool allows financial services companies to shift from traditional static KYC processes to a fully-automated, perpetual approach. The sandbox offers a “secure test environment” for firms to model and oversee the transition to this new process, highlighting potential operational management benefits.
One key advantage, as noted by Capgemini, is the reduction of fraud, as static KYC processes can create opportunities for criminals to engage in money laundering. Manish Chopra, Capgemini’s global head of risk and financial crime compliance, emphasized, “Static KYC processes present opportunities for financial criminals to exploit gaps and weaknesses. The pKYC sandbox capability marks a significant advance for industry compliance, meeting regulators’ growing expectations of responsible innovation.”
KYC compliance has become increasingly costly and time-intensive for companies since its inception. The introduction of the KYC sandbox follows Capgemini’s recent acquisition of Dutch regtech Delta Capita, further expanding its portfolio of financial crime and compliance solutions.