Keskeiset huomiot KYC-ohjelmistojen tee-tai-osta päätöksissä

The thesis studies the key considerations, motivations and risks in make-or-buy decisions of know your customer (KYC) software by looking at a Finnish financial service provider (FSP) that is considering purchasing an external KYC software. Tight regulatory environment and increasing and evolving anti-money-laundering (AML) regulation causes challenges for FSPs in building and maintaining effective KYC processes. FSPs need to organize sufficient KYC processes to stay compliant with regulation and continue operating their business. To alleviate this, third-party compliance - and KYC-software have become popular and utilizing external KYC software has become a valid op-tion. This presents a key decision for many FSPs: whether to make or buy KYC software? This study analyzes the make-or-buy decision through an extensive literature review, by applying frameworks, such as transaction cost economics (TCE), and with the help of semi-structured interviews with key stakeholders of a Finnish FSP. By applying these methods, the study suggests that the key drivers behind KYC software outsourcing include focus on core business and resource efficiency and access to specialized knowledge, especially regarding regulatory and compliance knowledge. Interestingly, unlike in traditional out-sourcing literature, cost savings did not emerge as a central key driver behind KYC software outsourcing. The thesis also highlights key risks and considerations involved in KYC service outsourcing, such as regulatory risks, service continuity, vendor lock in and data security. The research also touches on potential risk mitigation strategies, including service level agreements (SLAs), ensuring data ownership, exit planning and trial periods. The thesis aims to fill the gap of research in KYC service outsourcing and provides FSPs with concrete advice to help them navigate KYC software outsourcing decisions in an evolving regulatory environment. Additionally, the thesis highlights the need for further research in the topic of KYC software outsourcing.