KYC as a Scaling and Competitive Advantage

Many companies view KYC primarily as a regulatory obligation. From your perspective, where is the greatest economic lever for automating KYC processes?

Philipp Bojér: In the combination of speed, cost reduction, and quality. Traditional, manual KYC processes consume significant amounts of highly qualified labour, are prone to errors, and scale poorly. In practice, we have seen processing times per case reduced from 10–30 minutes to just a few minutes. This translates into time and cost savings of up to 90 per cent. At the same time, error rates drop significantly because manual handoffs and data re-entry are eliminated. KYC becomes not only cheaper but truly scalable for the first time, which is a genuine game-changer for many organisations.

Why do international KYC and KYB processes become a problem so quickly in corporate banking?

Philipp Bojér: The main reason is the fragmentation of regulatory requirements. Each country demands different documents, identification methods, data protection rules, and risk assessments, and there are also differences in registries and documentation standards. A good example is the distinction between free and paid registers, which, depending on the client structure, can lead to substantial costs just to meet regulatory obligations. Without centralised orchestration, this results in numerous exceptions, manual workarounds, and long cycle times. In international setups, onboarding often takes two to three times longer. Companies that want to scale successfully need standardised core processes with country-specific controls, not the other way around.

Regulatory requirements are constantly changing. How can companies keep their KYC processes stable?

Philipp Bojér: The key is not to design processes as static. Companies need adaptive systems that can map new regulatory requirements through rules without repeatedly intervening deeply in IT or operational processes. Rule-based orchestration, policy versioning, and low-code workflows ensure that new requirements can be implemented within hours or days. This keeps operations stable, even as the regulatory environment continues to tighten.

UBO identification and verification are particularly complex. Where do you see the main challenges?

Philipp Bojér: UBO investigations are complex because ownership structures are often layered, international, and poorly documented. Manually, this means extensive research, document verification, and reconciliation of registry data. Data from commercial information providers is not a true alternative either, as legal reconciliation with official registers is still required. This leads not only to high costs, but also to additional workaround efforts. With system-based automation, 60–80 per cent of manual effort can be eliminated. Processing times fall from 20–40 minutes to 5–10 minutes per case, while improving quality due to more consistent and auditable checks. This is a major advantage in audits and supervisory reviews.

What impact do media breaks have on KYC processes?

Philipp Bojér: Media breaks are among the biggest drivers of errors and delays. PDFs, emails, and manual data entry lead to incomplete information, follow-up questions, and rework. Companies that eliminate these breaks report processing times that are 30–60 per cent shorter and significantly fewer errors. Transparency and traceability improve as well. An end-to-end digital KYC journey is no longer a nice-to-have, but a basic requirement.

Why is automated ongoing monitoring critical for compliance in modern organisations?

Philipp Bojér: Because risks are constantly evolving. One-off checks are no longer sufficient. Automated ongoing monitoring reduces review efforts significantly, as teams can focus on relevant alerts triggered by changes. At the same time, risks are identified in real time rather than during periodic reviews. In practice, compliance teams can handle two to four times as many cases with the same headcount, while improving quality and reducing risk.

How will KYC evolve over the coming years?

Philipp Bojér: With the new AML directive, KYC will remain a dynamic topic. In the DACH region, we will see noticeable changes in the coming years. The trend toward greater digitisation will continue, accompanied by more harmonised and more closely supervised regulation with a stronger risk-based approach. This will require companies to move away from one-time checks toward continuous ongoing monitoring. Faster, digital onboarding via state-recognised eIDs, increased automation, and the use of AI in screening and risk assessment will significantly reduce costs. Supervisory authorities such as BaFin, FMA, and FINMA will increasingly expect transparent, technically robust KYC processes. Initial fines already point clearly in this direction.

Do robust, system-supported KYC processes combined with new technologies offer significant opportunities for regulated companies and replace established models?

Philipp Bojér: Absolutely. Companies that integrate KYC, AML, fraud, and sanctions data gain a holistic view of risk for the first time. This reduces false positives, accelerates decision-making, and increases compliance assurance. RegTech and data-driven solutions will become the new standard, especially for companies that want to grow without scaling their compliance organisations proportionally.