Why a smart KYC-process makes a difference.

For many companies, it is a familiar challenge: the Know Your Customer (KYC) process. What once started as a way to mitigate risk and comply with regulations has, in many organisations, become a slow, cluttered and error-prone process. And that's a shame - because KYC doesn't have to be cumbersome at all.

In this use case, we explain why a modern KYC process can be a strategic advantage rather than a burden. And how you can tackle it smartly with standard technology.

What exactly is KYC?

KYC is at its core about verifying the identity of your customers or partners. It is often mandatory within sectors such as energy, finance, logistics and industry - where security, compliance and reliability are crucial.

But KYC goes beyond just knowing who your customer is. It is also about:

Where is that customer located ?
Who are the ultimate stakeholders ?
Whether there are risks of money laundering, sanctions or corruption
And whether customer data is current and complete

This requires a process that is more than just a completed form or a copy of a passport.

Fragmented information, lots of manual work

In many organisations, the KYC process runs through a jumble of e-mails, Excel files, paper files or shared folders. Each department does it in its own way - or even trickier: each country or branch.

Result?

Incomplete customer files
No overview of who verified when
Compliance departments putting out fires
Employees losing time on administration

The risk?

Not only a fine from the regulator, but also reputational damage - or simply losing out on valuable collaborations.

A smart and scalable KYC-process

A good KYC process meets four key requirements:

Central and uniform - so that everyone follows the same steps
Flexible in use - with room for local legislation or exceptions
Built on top of existing tools - so employees can work with them without learning new software
Transparent and audit-proof - with logging, reporting and revision history

This sounds ambitious, but with the right use of Microsoft 365 tools such as SharePoint, Power Automate, Forms and Power BI, it is surprisingly achievable.

How does this work in practice?

Imagine this: a customer fills in a dynamic intake form online. Depending on the type of relationship (e.g. supplier or carrier), the appropriate documents and checks are automatically requested.

The documents are stored centrally, approvals run through automatic workflows and compliance always has insight into the current status via a dashboard. Does an authorisation expire? The person responsible is automatically notified.

In short: no more Excel chaos. No disconnected e-mails. But overview, control and speed.

The benefits at a glance

Less manual work
Higher data quality
Faster turnaround time of customer verifications
Better prepared for audits or inspections
Employees have more time for valuable work

Last but not least, the KYC process is no longer seen as a “burden”, but a logical part of customer and partner onboarding.

KYC as strategic advantage

KYC is a compliance obligation, sure. But it is also an opportunity to better organise your internal processes, reduce risks and make a more professional impression on your customers.

If you manage KYC well, you lay the foundation for reliability - internally and externally.

Curious about how to set up such a KYC process without a complex IT project? We would love to show you how to do it with the tools you probably already have.