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, keeping pace with fast-moving technology innovations, and a scarcity of qualified resources to support your business.

At KPMG, 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:

Operationalize your growth ambition
Minimize disruption and risk
Accelerate your transformation journey

We go beyond:

The back office
Cost savings
Tech alone

How KPMG can help

KPMG Managed Services provides 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.

Learn more

Managed services for Anti-Money Laundering (AML)

KPMG Managed Services provides financial crimes solutions by combining deep domain 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:

Process inefficiencies/changing requirement

Fragmented and siloed data

Minimal technology investments

Negative customer experience

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.

Learn more

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

Learn more

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 and addressing current challenges. Several trends are reshaping today’s regulatory and data and financial reporting environment, including:

Changing regulatory requirements

Regulators are rolling out additional reporting requirements in several different areas. For example, the SEC is considering a proposal broadening ESG reporting requirements and the CFBP recently changed reporting and data collection needs related to lending and the Community Reinvestment Act is in the process of being modernized.
Growing business complexity

Organizations are becoming more complex given the shift towards remote/hybrid work models, use of digital currency, threats to cybersecurity, labor shortages and market volatility. The complexity can pose challenges in organizing and collecting data, implementing effective controls, and accurate and timely reporting.
Greater consumer interest in business transparency

Similar to the regulators, consumers are becoming more conscious and demanding transparency from companies in areas such as sustainability, data privacy and security, diversity initiatives, fraud detection, and more. This reporting can inform and influence consumers’ purchasing decisions.
Labor market challenges

The Great Resignation in 2021 led to labor shortages in the market. Additionally, workers are demanding more benefits and flexibility from their employers. These trends have made it harder for organizations to afford, find, and retain employees, potentially impacting their core business activities.

In addition, a recent KPMG survey indicates that 62% of organizations expect an increase in the need for ESG reporting and transparency services. In response to all of these challenges, KPMG Managed Services provides a number of testing and reporting services to support financial institutions:

Data testing

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.

Control testing

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; and comply with internal and external regulations.

Regulatory testing

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.

Loan processing services

When a spike in loan originations due to low mortgage rates hit, many banks were challenged by a lack of skilled resources to support high and surging volumes. This has been compounded by an increase in loan modification requests from borrowers as the economy has adjusted. With continual staff turnover, lack of standard procedures, and limited capability to leverage technology, organizations need a managed service partner to provide the right-skilled, right-sized support as and when they need it.

KPMG Managed Services supports:

Loan processing services

Paycheck protection program

Mortgage processing

MRA triggered operations support

Our Surge capacity services can flex up and down to meet your needs with our multi-disciplinary teams that help organizations access short term, qualified professionals to manage swells in specialized work.

With access to over 200 trained resources, our ability to leverage deep industry knowledge helps banking and finance organizations meet these challenges and respond with opportunities to keep your teams focused on their core competencies.

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 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.

Controls testing

Financial institutions are often challenged in their controls testing and monitoring programs. Common issues include:

A lack of adequate risk coverage that demonstrates they are properly managing risk in line with governance and regulatory expectations.
Not utilizing or under-utilizing enabling technologies for controls testing and monitoring which are often approaches manually intensive, not standardized, duplicative across different teams, and with limited KPIs to track operational performance which can ultimately lead to increased compliance and operational risks.
A culture of cost management that is not embedded throughout the organization can create a high cost of compliance as a significant portion of their operating expenses due to regulatory complexities and increased expectations driving the need to dedicate more time and resources to controls testing and monitoring activities.

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:

Increase operational efficiencies and reduce costs - 30% to 45%

Provide experienced onshore and offshore teams

Deliver end-to-end workflows developed on Wdesk from Workiva

Fraud

According to the 2025 FTC report , American consumers lost $12.5 billion to fraud in 2024, marking a 25% increase over 2023 losses. A significant share of these losses stemmed from bank‑related payment methods. The largest fraud categories were investment scams, accounting for $5.7 billion, followed by imposter scams at $2.95 billion.

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. In addition, financial Institutions are required to file Suspicious Activity Reports (SARs) with FinCEN within 30 days of the activity being identified. 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:

Fraud investigation and case remediation

SAR draft creation

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 optimize their technology to provide analytics and insights to help minimize fraud cases and increase operational productivity.

Our insights

Explore how modern business use managed services to fast-track their AI adoption

Timely insights to help you drive transformation, build resilience, and seize new growth opportunities in today’s rapidly evolving business environment.