Capgemini has launched a know your customer (KYC) sandbox designed to assist financial institutions in shifting from outdated, manual review processes to continuous, data-driven KYC models.

Created in partnership with various technology firms, this framework supports both perpetual KYC (pKYC) and event-triggered assessments.

It enables organisations to safely test these new approaches in a controlled setting.

The sandbox provides a secure environment to help firms explore how pKYC systems function before full deployment. It also allows stakeholders to evaluate performance and present outcomes to compliance leaders and regulators.

This initiative supports the broader movement towards more responsive and automated regulatory practices.

The tool is intended to offer real-time alerts when key customer information changes, affecting risk profiles.

This dynamic approach allows firms to reassess exposure promptly, helping maintain compliance with AML standards.

A continuous monitoring framework can lead to faster response times and improved oversight, the company said.

To comply with evolving regulations, financial firms must integrate data from internal and external sources. Capgemini’s sandbox helps consolidate these inputs, enabling firms to trial technology and processes together.

It aims to reduce risks during transitions while validating outcomes efficiently.

Designed with flexibility in mind, the platform can be deployed across different cloud services and technical environments. Its modular structure makes integration with existing systems more straightforward.

Organisations can customise the setup based on their infrastructure and regulatory priorities.

Key features include a protected space for experimentation, minimising risk to live data and systems.

It supports the evaluation of KYC strategies using tools from leading regulatory technology providers. The platform allows users to see the pKYC model in action, aiding discussions with oversight bodies.

Capgemini says the sandbox helps firms identify operational inefficiencies before large-scale adoption.

Early testing allows teams to refine workflows and demonstrate business impact more quickly. It also assists in building the case for investment in ongoing KYC solutions.

This development adds to Capgemini’s existing services in compliance, fraud prevention, and risk control.

It follows the company’s acquisition of Delta Capita, a European consultancy with KYC transformation expertise.

Delta Capita enhances Capgemini’s offering through its specialised focus on financial crime compliance.

Capgemini Risk and Financial Crime Compliance Global head Manish Chopra said: “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.

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

“The pKYC sandbox capability marks a significant advance for industry compliance, meeting regulators’ growing expectations of responsible innovation. It is an actionable measure for financial institutions to demonstrate how they are mitigating inherent risk exposure more effectively.”