Design and Implementation of a Datamart and Reporting for the KYC Process in a Banking Institution

This thesis focuses on the design and implementation of a KYC datamart and its associated reporting to support the Know Your Client (KYC) process within a selected banking institution, which is also the main goal of the thesis. The primary motivation was the absence of a unified data source for KYC related activities, further emphasized by a finding from the Czech National Bank, which identified a low proportion of valid KYC checks among the bank’s clients. Facing potential regulatory sanctions, the institution was required to raise the share of valid KYC checks to at least 95%, which naturally necessitated the automation of the KYC process. However, such automation is only feasible with the existence of a centralized data source. Based on a thorough analysis of relevant legislation, business, technical and data requirements together with the analysis of the bank’s environment from both business and technical perspective, a KYC datamart was designed and subsequently implemented on the Cloudera data platform. The output tables of the datamart were integrated into the Risk Server (an analytical database used by the bank’s risk departments and as a source for various reports). Leveraging SQL Server Reporting Services, a reporting solution was developed that includes a regulatory report for the Czech National Bank to track compliance with regulatory requirements, as well as a KPI report for monitoring the performance of the team responsible for processing KYC checks. Together, the datamart and the reporting represent the core deliverables of this thesis. The implemented solution enabled automated outreach to specific client segments for the completion of KYC checks and allowed for partial automation of the KYC process without direct employee involvement. As a result, the share of valid KYC checks increased to 97%, successfully meeting the Czech National Bank’s regulatory requirements.