Capgemini Launches pKYC Sandbox for Financial Institutions

Capgemini has unveiled a sandbox technology that enables financial institutions to test perpetual Know-Your-Customer (pKYC) processes before full implementation.

The sandbox provides a testing environment for financial firms to transition from static, manual KYC processes to a continuous monitoring approach. Capgemini has worked with multiple technology partners to create this integrated framework.

From periodic to perpetual

Traditional KYC processes involve manual, periodic reviews of customer information to identify financial crime risks. These static approaches create windows of opportunity for criminal activity between reviews.

Perpetual KYC, by contrast, provides continuous monitoring that alerts firms immediately when material changes occur in a customer's risk profile. 

This enables financial institutions to reassess exposure in real time rather than at fixed intervals, potentially closing compliance gaps.

“Static KYC processes present opportunities for financial criminals to exploit gaps and weaknesses for money laundering and other fraudulent activities, creating a continuous risk factor for financial institutions,” says Manish Chopra, Global Head of Risk and Financial Crime Compliance at Capgemini. 

“We firmly believe that perpetual KYC is the approach needed to protect financial institutions from undue risk, enforcement actions, and large fines.”

Meeting regulatory requirements necessitates consolidation of data across internal systems and external sources. 

The sandbox technology enables firms to test new approaches without risking customer data or compliance failures.

Technology integration

The technology has been designed with a modular framework that works across cloud platforms. It incorporates regulatory technology (RegTech) solutions for data orchestration, artificial intelligence tools for automation and cloud infrastructure for scalability.

This approach allows financial institutions to demonstrate compliance improvements to regulators while identifying operational issues before full deployment.

“Financial institutions have a duty to not only understand their customer, but their customer's customer too,” says Ivar Lammers, Global Head of Financial Crime Prevention for Wholesale Banking at ING. 

“As financial crime rapidly evolves, and pressure mounts on maintaining compliance, the traditional KYC models struggle to address real-world challenges. Perpetual KYC is the shift required to rapidly respond to customer behaviour changes and drive smarter compliance.”

The sandbox offers functionality to test new KYC processes, integrate regulatory technology solutions, visualise pKYC operations, and identify operational challenges. 

This enables firms to gauge the business impact of shifting to continuous compliance monitoring before full implementation.

Capgemini expands compliance offerings

The sandbox represents the latest addition to Capgemini's financial crime prevention portfolio. It follows the firm's recent acquisition of Delta Capita BV, a European provider of Financial Crime Compliance (FCC) solutions with expertise in KYC transformation.

This marks Capgemini's second major acquisition in the financial crime prevention space, following its purchase of the FCC division of Exiger in 2023. 

These developments strengthen the firm's market position in regulatory compliance solutions.

“In response to industry challenges around manual KYC processes and operational spikes, Capgemini has developed a pKYC sandbox that offers agile testing and rapid time-to-value,” says Dheeraj Maken, Practice Director at Everest Group.

“The solution integrates real-time data orchestration, AI-led automation, and scalable cloud infrastructure to drive process efficiencies while aligning with regulatory expectations for proactive, real-time responses – accelerating the industry shift toward perpetual KYC.” 

Ivar adds: “Capgemini's pKYC sandbox is an impressive blend of visualising the effectiveness of KYC processes in action and experimenting with new tools in a secure environment, all without risking customer data and optimising infrastructure cost. 

“It presents a significant opportunity for the industry to demonstrate to regulators excellence in achieving the critical requirements of real-time KYC.”

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