Updates to Pega CLM and KYC business pillars

Pega Client Lifecycle Management and Know Your Customer™ helps financial institutions save time during client Onboarding, Review, and Due Diligence operations while simplifying and streamlining the back-office operations related to those customer Journeys.

Pega CLM and KYC '24.1 and '24.2 revolves around two main business pillars:

• Enhance existing features.
• Create new features through embracing new technologies.

The first pillar, enhance new features, includes the following updates:

• KYC Due Diligence parallelization.
• Enhancements to how Review Journeys are managed in CLM.
• Improvements to how data changes occur in CLM.
• The ability to add Related Parties without providing all the mandatory data.
• New and updated Due Diligence questionnaires.

Let us take a deeper look into each of these features.

Due Diligence parallel processing: Beginning with CLM' 24.2, users can now conduct due diligence for the Contracting Party and Related Parties in parallel. This update replaces the previous sequential model that required users to complete due diligence on Related Parties before conducting due diligence on the Contracting Party. This change helps banks obtain a faster view of their risk exposure by capturing party information as it becomes available without waiting for some Cases to resolve first. The application manages updated data across all the Cases through data synchronization and managing dependencies between the parties.

Enhancement of review journeys management: Earlier releases included a varied architecture before '24.2, where some journeys used the old schedule review architecture, while others used the new EDA2G. CLM '24.2 ensures that all the Review Journeys now use EDA2G. Additionally, all the Review Journeys were restructured to fall under three main Journeys: Quick Review (for event-driven reviews), Full Review, and Periodic Review. Quick Reviews include preconfigured targeted actions, such as requesting a specific document and running a targeted questionnaire. Additionally, Quick Reviews can be converted to full or periodic reviews if the analyst chooses to. For example, if a Quick Review address change begins ten days before a periodic review, the application prompts the user to convert the Quick Review to a Periodic Review. Business users (with the appropriate access) have added configuration flexibility. For instance, they can determine the Stage at which the Review should start, specify which events are fast-tracked, and manage data change control settings.

Data change management enhancements: Data changes to sibling and parent or child Cases often require refreshing or restarting related Cases. This action is especially crucial with the new Due Diligence Case parallelization feature. CLM '24.2 enables a data-driven mechanism to restart KYC, eScreening, and Adverse Media Cases. Users can classify data changes as material or non-material. Customers can easily configure and categorize data properties accordingly. Material and non-material changes have various configurable actions that are data-driven. The range of actions includes Restart, Refresh, Re-open, and No Action.

RP incomplete data management: Banks might sometimes receive partial Related Party data. While banks cannot complete due diligence with the partial data, they usually want to save whatever data they have as they gradually receive it. CLM' 24.2 helps analysts to capture this partial Related Party data (in both the Enrich and Due Diligence Stages) as they receive it. Banks must capture the Related Party's name and role at the bare minimum. The system does not enforce capturing all mandatory fields before saving the Related Party record. The system saves incomplete Related Party data but does not synchronize it to the Customer Master Profile. After the bank captures all the mandatory fields, the system evaluates Related Parties as complete.

Nordics Due Diligence: '24.1 includes updates for the Due Diligence questionnaires for Finland, Sweden, and Denmark, and new ones for Norway. These changes were also backported to '23 as a hotfix to support our existing customers on '23.1.

ESG Due Diligence: This release introduced ESG Due Diligence, which considers Environmental, Social, and Governance factors in investment decisions. The ESG entity questionnaire aligns with the United Nations' human rights, labor, environment, and anti-corruption principles. The questionnaire is available in various business relationships, including with suppliers.

Other functional enhancements: Finally, '24.1 included a few additional minor enhancements, such as replacing Equifax Interconnect with Equifax OneView for enhanced credit risk assessment features and improving the usability of the KYC Questionnaires by introducing counters and visual cues for tasks that require user action.

You have reached the end of this video.

Now watch the second video, to learn more about what's new in CLM '24.1 and '24.2:

The second pillar, create new features by embracing new technologies, includes Pega Gen AI™ uses: Regulatory Buddy and Customer Summary. It also includes a new Alerts and Investigations Management (AIM) in the Constellation accelerator.

Customer Summary: Front office users can now quickly generate a customer summary report on demand by using Pega GenAI. Pega GenAI reviews all the available information about a customer, including the Customer Master Profile and in-flight journeys, and provides the most relevant Insights and next best actions. The offering is for front-office users (such as relationship managers) by default, but it is also customizable to suit other user Personas.

Regulatory Buddy: One of the challenges that financial organizations face today is training their analysts and enabling them to be efficient and accurate with their due diligence. This issue gets amplified in areas that have high turnover rates. Pega CLM regulatory buddy, introduced in '24.2, uses Pega GenAI features, specifically Pega Knowledge Buddy™ and Pega Knowledge™. Organizations can use their internal policies and guidelines and local and global regulations to provide on-demand contextual regulatory policy guidance. Users can add this reference material through a business-friendly configuration Portal, which removes the need to rely on release cycles to keep them current. Because of the sensitive nature of the regulatory field, Regulatory Buddy includes zero hallucinations. It does not make up an answer if it cannot find an answer to a question.

You have reached the end of the video.

Check your knowledge with the following interaction: