Corporate clients generally want faster, more digital processes, and they are tired of jumping through hoops when it comes to Know Your Customer (KYC) processes. From stacks of paperwork to constant requests for the same documents, corporate treasurers are still navigating a KYC landscape that feels anything but modern.
Banks, meanwhile, are feeling the heat. Regulatory fines for compliance failures are up. And risk teams are under pressure. But here’s the biggest challenge: While KYC compliance is non-negotiable, the way it’s delivered is driving corporate clients away.
An Encompass survey of 250 corporate treasurers for the second year in a row looked to understand how they experience the KYC process. One stat jumped off the page: 85% of organizations are considering switching to a digital-first bank in search of a better experience.
The true cost of KYC failures
More than 90% of the organizations we surveyed have considered switching banks in the past year because of KYC pain points. And that frustration goes beyond a poor user experience. It’s impacting the bottom line:
- 86% of organizations have abandoned a banking application because of delays in the onboarding process.
- 83% report lost revenue as a direct result of slow or complex onboarding.
These numbers haven’t budged much since last year. That consistency tells us something important: KYC inefficiency has become a systemic problem and a financial liability.
Still sharing sensitive data over email?
Despite security concerns, many banks still haven’t modernized how they collect KYC documents. Just 52% of treasurers say their banks use a secure portal. The rest are stuck using email (31%) or even paper-based processes (17%). That’s a major red flag, especially considering that 83% of respondents express concern about how sensitive data like passports or ownership structures are shared. That number climbs to 89% in the U.K.
The data is clear – banks must reimagine how KYC is delivered to not only to stay compliant, but to retain clients and improve the customer experience.
Overcoming KYC fatigue: How CDI can lead the way
Banks don’t need to rip everything up and start over. They do, however, need to rethink how KYC is delivered, emphasizing automation and the strategic application of previously verified data, rather than manual processes and redundant forms.
Corporate Digital Identity (CDI) can be a game changer.
CDI is a strategic, technology-driven approach to KYC. It combines advanced tools such as automation and artificial intelligence (AI) to create a standardized, dynamic profile of a corporate client. This profile is built from a blend of verified public records and private client documentation collated in real-time resulting in a reusable, continuously updated KYC record that evolves with the customer.
By automating data collection from trusted public sources and integrating it seamlessly into internal systems, banks can increase operational efficiency, reduce onboarding friction, and reallocate valuable human resources to higher-value activities like relationship management and customer experience design.
A comprehensive CDI typically includes:
- Detailed corporate structure and identification of ultimate beneficial owners (UBOs)
- Verified regulatory and registration details
- Original source documents and data provenance
- A full audit trail to ensure transparency and compliance
What makes CDI powerful is how it transforms compliance into an opportunity. By integrating automated data collection, GenAI-powered intelligent document processing (IDP), and smart workflows, banks can drastically cut onboarding time, reduce risk and deliver a vastly better client experience.
The next frontier in KYC
CDI goes far beyond regulatory compliance. It represents a strategic shift in how banks manage risk, serve clients, and compete in a digital-first landscape. Early adopters stand to gain not only greater operational efficiency, but also increased trust, stronger client relationships, and a larger share of the market.
The data speaks volumes. Now it’s up to banks to act.
Wayne Johnson is CEO and Co-Founder of Encompass Corporation.
