- Process inefficiencies/changing requirement
- Fragmented and siloed data
- Minimal technology investments
- Negative customer experience
The financial services industry continues to face ever increasing regulatory, technology, and talent challenges across every facet of their business. Traditional operational models can no longer effectively support the demands of and, more importantly, the risk of non-compliance, nor can they keep pace with fast-moving technology innovations, or solve the problem of a scarcity of qualified resources to support your business.
At KPMG in Romania, our managed services solutions go far beyond the classic models of labor arbitrage and transactional services. As your transformation partner, we walk with you through your ongoing journey.
We work with you to:
We go:
How KPMG can help
KPMG Managed Services provide a comprehensive approach to support financial services organizations, taking on the non-core, but Board-critical, aspects of maintaining – and improving – your business. Our deep industry experience, leading talent, and technology expertise supported by a global delivery model allows you to focus on your transformation strategy and driving business growth.
1. Managed services for Anti-Money Laundering (AML)
KPMG Managed Services provides financial crimes solutions by combining deep sector knowledge, data management, analytics, and advanced technology to digitize policies, automate processes, and monitor high volumes of transactions—all packaged in a multi-year subscription offer with outcome-based pricing.
By taking responsibility for your AML operations, our managed services enable you to:
- Improve data quality and reduce false positive alerts
- Automate data collection from multiple sources to verify and enrich customer profiles
- Better understand your customers and improve their experience
- Expedite transaction review
- Increase process efficiency
- Reduce the cost of compliance
- Earn the trust of regulators, customers, and other stakeholders
Know Your Customer and Customer Due Diligence
Financial services organizations are challenged by several areas related to Know Your Customer/ Customer Due Diligence (KYC/CDD) processes:
Know Your Customer On Demand services
Our services address these challenges by providing client refresh and onboarding services; KYC/CDD initiation; Customer outreach; KYC/CDD reviews; and Quality Control/Quality Assurance for your KYC/CDD initiatives.
Transaction Monitoring
From digital wallets to crypto to cross-border payments, digital innovation is changing the way transactions are executed—and also the opportunities for compromise.
KPMG Managed Services can take responsibility for the operational aspects of transaction monitoring, while you retain decision-making authority and responsibility for Suspicious Activity Report (SAR) filings. We offer a detailed, repeatable process that both our clients and regulators can trust, including:
- Real-time detection of transactional anomalies
- Smart alert classification for faster, more accurate review
- Data-driven analytics and tailored insights
- Improved compliance at a lower cost
Managed services for financial crime compliance
2. Data and reporting services
Financial institutions are faced with the need to transform their data and reporting capabilities. Our clients rely on our cross-functional experience and technology-enabled approach to help them meet the demands of today's financial services sector—protecting the assets of and building trust among consumers, investors, and other stakeholders as well as addressing current challenges. Several trends are reshaping today’s regulatory and data and financial reporting environment, including:
In addition, a KPMG survey indicates that 62% of organizations expect an increase in the need for ESG reporting and transparency services. In response to all these challenges, KPMG Managed Services provides a number of testing and reporting services to support financial institutions:
- Data testing
- Control testing
- Regulatory reporting
We test completeness, accuracy, and validity of data that plays an integral role in a broader data management program. This helps your organization attest to completeness and accuracy of data; understand data in order to improve and streamline processes; improve data-informed decision quality; and comply with internal and external regulations.
We leverage materiality and existing programs to conduct tests of design (ToD) and effectiveness (ToE) of internal control framework protecting data. This allows your organization to attest to internal controls for completeness, accuracy, and timeliness; identify control gaps and define remediation strategy; as well as complying with internal and external regulations.
We prepare data and/or reports to fulfill compliance and regulatory requirements. This helps your organization meet the need for providing data and reports for submission to regulators; adhere to routine regulatory requirements; identify automation opportunities; and identify gaps in meeting forthcoming changes in reporting requirements.
3. Model Risk Management
Model risk is an ever-present occurrence when financial institutions use models, whether for pricing, risk management, or decision making in general. Following the financial crisis, regulatory and supervisory scrutiny of this topic has increased considerably. Banks across the world are beginning to realize that they need to catch up to the high standards of model risk management (MRM) that is expected by the regulators and address these challenges:
- Absence of comprehensive model inventory
- Insufficient MRM governance
- Inadequate automation in repetitive processes
- Lack of standardized model documentation
- Rising costs of maintaining an MRM function
KPMG in Romania offers a wide range of MRM services to help address these needs. Through model validation (qualitative and quantitative), model reporting, our managed services teams can provide cost savings of 20 to 30 percent by accessing our model validation consulting experience, global delivery model, and validation workflow and reporting solution.
4. Controls Testing
Financial institutions are often challenged in their controls testing and monitoring programs. Common issues include:
Using managed services for controls testing provides a sustainable, high-quality approach to managing controls testing and monitoring requirements and provides a more holistic view of enterprise risk management. Through a number of PMO activities, document requests management, and document testing, KPMG Managed Services can:
5. Fraud prevention
Given the sheer number of increased fraudulent incidents within the industry, financial institutions are facing challenges to keep pace with the volume and frequency with which this activity is occurring. FI Operations teams are under a lot of stress and are unable to keep pace with the sheer volume of fraud cases resulting in huge backlogs and often missing filing the regulatory deadlines on time.
KPMG Managed Services helps address these pain points through
the following services:
We provide a scalable managed service to deliver cost savings to financial institutions. Our operational rigor coupled with robust MI reporting helps to drive significant efficiencies in these operations, while producing high quality deliverables. KPMG also works with FIs to enhance and improve their technology to provide analytics and insights to help reduce fraud cases and increase operational productivity.
