RDC a Leader in IDC’s KYC MarketScape

RDC is proud to be included as an industry leader in IDC's KYC Marketscape study. This study uses the IDC MarketScape model to provide an assessment of vendors providing know-your-customer (KYC) software solutions in the worldwide financial services market. This IDC MarketScape is an evaluation based on a comprehensive framework and a set of parameters that assesses providers relative to one another and to those factors expected to be most conducive to success in this market over both the short term and the long term. You can download IDC's study or read the excerpt below.

Download IDC's Study

by Steven D'Alfonso & Karen Massey

IDC MarketScape: Worldwide Know-Your-Customer Solutions in Financial Services 2018 Vendor Assessment

This IDC study presents a 2018 vendor assessment of worldwide know-your-customer (KYC) technology providers using the IDC MarketScape model. This research quantitatively and qualitatively assesses multiple characteristics that help explain a vendor's success and position in the marketplace
relative to its peers. This IDC MarketScape covers vendors that provide KYC software to the worldwide financial services market. This evaluation is based on a standardized set of parameters from which IDC can produce a comparative analysis of KYC software vendors. The technology vendors provided an in-depth assessment of their current capabilities and strategies, and their reference clients were interviewed to assess the vendor's ability to meet the financial institution's (FI's) strategic needs and current requirements. For the purposes of this study, IDC defines KYC as inclusive of complete customer onboarding including customer identification, customer due diligence (CDD) (including beneficial owner), enhanced customer due diligence, watchlist/sanction screening, and ongoing customer risk-based assessments. Key findings from this research include:

  • Artificial intelligence (AI) and machine learning (ML) are becoming increasingly important to KYC efficacy and customer experience, and savvy KYC providers have already incorporated AI/ML into their solutions and road map.
  • Advanced analytics in KYC that incorporate AI/ML significantly improve the KYC screening process, resulting in potentially better outcome prediction accuracy.
  • Buyer references placed importance on customer service in terms of the KYC vendor's ability to address technical concerns in a timely manner, as well as transparency and the ability to keep pace with regulatory requirements in the product enhancement, update, and strategic directions.
  • As an institution's specific objectives and requirements play a critical role in determining which providers should be considered as potential KYC solution candidates, this evaluation should be considered as a guide to selection and not as an endorsement of a specific vendor for any specific engagements.

IDC MarketScape Vendor Inclusion Criteria

This research includes 17 worldwide providers of KYC software. The vendors included in this research are all substantial competitors within the KYC software market. While many of these vendors provide end-to-end anti-money laundering (AML) and know-your-customer solutions, the focus of this research was solely on KYC and customer due diligence (CDD). AML transaction monitoring solutions are being evaluated under a separate IDC MarketScape product. To be included within this study, vendors must sell their solution in multiple worldwide regions and have at least five active customers in at least two regions (North America, EMEA, Latin America, and Asia/Pacific). Many other vendors were considered for inclusion in this assessment but were not included as the result of not meeting the evaluation criteria or being out of scope for other extenuating circumstances.

Advice for Technology Buyers

KYC has become an arduous concern for most financial institutions. KYC and its cousin anti-money laundering have been refined over the years. In its simplest form, KYC mandates the financial institutions verify customers are who they say they are. However, regulations have not been prescriptive in how, and with what, institutions should evaluate customers. The result is considerable expense for the institution for the technology and human resources to stay ahead of regulators and out of the headlines. Indeed, IDC Financial Insights estimates that financial institutions will spend US$8 billion on financial crime management in 2018. IDC Financial Insights offers the following guidance for financial institutions selecting a KYC partner to address evolving customer due diligence requirements and schemes:

  • Determine a strategy to manage constantly changing information. Customer data is constantly changing, and inconsistencies can appear across multiple sources and forms of identification. Work with vendors that understand the data challenges, especially any challenges that may be
    unique to your institution or region.
  • Use this IDC MarketScape to assist with vendor selection. This study is not meant to provide guidance on the best KYC solution for your strategic direction, as it provides our assessment of KYC vendors as of the time of this analysis. Financial institutions can use this IDC MarketScape to evaluate KYC solutions, along with vendor proposals, presentations, and demonstrations. Because this analysis shows that the breadth and depth of solutions offered are strong for most providers, financial institutions should make sure to understand where these players are truly differentiating and determine what is important to their selection.
  • Learn from the experience of institutions that have gone before you. In speaking with customer references, IDC Financial Insights found that many end users that IDC Financial Insights spoke with provided lessons learned that had they been aware of or planned for in the earlier stages would have better set them up for success. Lessons learned include planning for the customer experience particularly in account opening and other processes involving customer identification, particularly in siloed institutions, and allowing ample time for testing.

Vendor Summary Profiles: RDC

This section briefly explains IDC's key observations resulting in a vendor's position in the IDC MarketScape. While every vendor is evaluated against each of the criteria outlined in the Appendix, the description here provides a summary of each vendor's strengths and challenges.

Regulatory DataCorp (RDC)

Regulatory DataCorp (RDC) is positioned as a Leader in this IDC MarketScape for worldwide KYC solutions in financial services. RDC prevents criminal infiltration of the world's financial systems by delivering automated, intelligent customer screening and decision-ready intelligence. RDC supports more than 35,000 compliance professionals across more than 100 countries in strengthening their KYC/AML, fraud and politically exposed persons protection, ensuring sanctions and watchlist compliance, protecting their brand and reputation, and managing supply chain and vendor risks. RDC uniquely combines the world's largest risk-relevant database together with an advanced machine learning-driven, SaaS-based screening platform, capable of supporting the largest and most complex global organizations. RDC provides a SaaS-based platform that provides integrated customer screening for politically exposed persons, sanctions, watchlists, and adverse media. The screening engine leverages machine learning and natural language processing (NLP) to provide accurate filtering and name matching, improving operational efficiency and reducing false positives.

Strengths

  • Extensive expertise is based on over 1 trillion screens against the largest curated risk database with over 9 million risk profiles and data from more than 200,000 sources.
  • Advanced AI and machine learning algorithms support its patent-pending name-matching technology.
  • Automated daily portfolio monitoring eliminates the need for periodic reviews.
  • Customer references noted adverse media capabilities that are comprehensive and provide fitfor-purpose data that enhances and standardizes the risk management process.

Challenges

  • RDC focuses its efforts on risk screening and does not provide workflow tool capabilities. However, it has an extensive partner ecosystem to work with its customers to provide these capabilities.
  • Customer references noted the frequency of product updates and additional features as potential concerns.

Consider RDC When

  • RDC is geared toward larger banks looking for a SaaS solution with advanced screening risk monitoring capabilities.

Try RDC for Yourself

Ready to improve your customer screening process? Learn how RDC can work for you.