Updates to Pega CLM and KYC business pillars

Pega Client Lifecycle Management and Know Your Customer application helps financial institutions save time during client onboarding, review, and due diligence operations and simplify and streamline the back-office operations around those customer journeys.  

Pega CLM and KYC version 8.8 revolves around three main business pillars:

• Data augmentation.
• Net-new feature development.
• Functional gap development.

The data augmentation pillar involves external data utilities and providers to streamline the client lifecycle management (CLM) and know your customer (KYC) journeys. The process of data gathering, review, and validation takes a significant portion of the end-to-end journey and uses many human resources. Therefore, every effort to reduce and automate data management contributes to streamlining the end-to-end processing times and effort.

Pega CLM and KYC version 8.8 features a new integration with the organization Encompass. Unlike traditional data utilities, Encompass is a data aggregator. It collects data from different providers around the world and consolidates the information in a common data format for intake by onboarding and due diligence applications. The integration with Encompass eliminates the need to implement custom integrations with many other data providers for specific jurisdictions, product types, or lines of business.

The new feature development pillar contains development around new business areas, which typically align with the direction the market is moving towards.   

In Pega CLM and KYC version 8.8, the focus for new development is on Perpetual KYC. Historically, the customer base of various financial institutions maintains compliance through full scheduled reviews based on the risk profile of customers. While many financial institutions still follow this periodic practice, the new market trend is shifting towards a more continuous review cycle. As customer changes take place, more targeted and efficient reviews are triggered by events sent by external systems.

For example, a change in the postal address of a retail client might trigger a review process that requires sanctions screening or additional documentation to satisfy regulatory requirements. The Pega CLM and KYC version 8.8 application provides a new event driven architecture that helps to facilitates definiton of event types and their associated processes and requirements.

The third pillar in Pega CLM and KYC version 8.8 is functional gap development. The application now includes functional items that are already supported but require further enhancement, amendment, or polishing. Client feedback drives this pillar in the latest version.

Pega CLM and KYC version 8.8 focuses on two main topics for this third pillar. The first topic is the enhancement of the quality control mechanism in KYC due diligence, and the maker-checker paradigm for quality control in the application has expanded features. The second topic concerns the update of the default UK regulatory questionnaires (also known as UK workbooks) with amendments and modernization following the Brexit.

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