KYC costs in a country like Sweden can reach USD ~325mn p.a.
KYC costs are highly elusive as they are essentially driven by
time investment of personnel, which is hard to capture.
We worked together with one of the biggest banks in the Nordics to calculate the KYC cost for the Swedish ecosystem. The results underlined the importance of tackling this area as total costs amounted to USD ~325mn.
A third of the total cost is due to duplication of efforts
Around a third of the total cost was borne out of duplication of efforts between financial institutions serving customers with multiple relationships. In Sweden, Retail customers have ~1.5 banking relationships while Large Corporates are typically served by 3-4 institutions.
Additionally, the same burden also fell on the customers, who have to fill in similar forms for multiple banks on a regular basis.
Fides can decrease costs in an ecosystem like Sweden by ~50%
Not only does the platform allow savings through digitization of the process and removal of duplication between financial institutions; it allows for the first monetization on KYC efforts towards other obliged entities.
Only by removing duplication of efforts, 800 mandays are spared!
Looking closer at the impact on the removal of duplication, Fides can save around 800 mandays p.a. Additionally, an even greater amount of effort is alleviated on the customer side.