KYC rules force banks into costly off-boarding exercise
Stricter KYC expectations cost banks as they off-board unprofitable clients, and in some cases have to turn down legitimate business
Banks are facing the troublesome task of sorting through thousands of clients' data as they bid to mitigate rising know-your-customer (KYC) costs by axing large numbers of unprofitable relationships. In the long term, they aim to cut compliance costs, by shedding accounts which do not produce enough revenue to justify the growing bill for due diligence. But the short-term outlook is one of growing strain on personnel and IT resources – and a drop in revenues as the customers leave.
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