Overview

Mizuho Americas, a subsidiary of Mizuho Financial Group, undertook a transformative project to modernize its Know Your Customer (KYC) onboarding processes. Facing the challenges of manual, laborintensive operations and changing regulatory landscapes, Mizuho opted for Fenergo’s client lifecycle management (CLM) solution. This implementation, initiated in May 2019, aimed to streamline KYC policies, enhance operational efficiency, and improve the client experience, with a phased rollout starting in the Americas and expanding globally. Despite the disruptions caused by COVID-19, the project met key milestones, with the banking business going live in September 2020 and the securities business scheduled for July 2021, setting a model for peer financial institutions to follow.

Mizuho’s choice of Fenergo’s solution, with its regulatory rules engine, workflow automation, and API capabilities, has positioned the bank to achieve a single, group-wide platform for client onboarding and data management. The implementation represents a strategic investment in modernizing KYC operations, driving compliance, and ultimately realizing cost efficiencies while adapting to the ever-evolving regulatory landscape.

Implementation Process

• Project Initiation and Vendor Selection (May 2019): Mizuho recognized the need to modernize KYC onboarding and selected Fenergo as the preferred vendor based on capabilities and engagement.
• Proof of Concept (November 2019): A successful PoC confirmed Fenergo’s suitability for Mizuho’s needs.
• Phased Implementation: The project followed a phased approach, starting with the Americas and expanding to other regions.
• Phase 1: Banking Business (September 2020): The first phase went live in September 2020, despite COVID-19 challenges
• Phase 2: Securities Business (July 2021): Phase 2, for the securities business, is scheduled for July 2021.
• Future Expansion: Mizuho plans to roll out the solution globally, improving efficiency and compliance.
• Regulatory Engagement: Constant communication with regulators ensured compliance
• Monitoring and Analysis: The bank continuously monitors the solution’s impact and plans ROI analysis post-implementation.

Benefits Achieved

• Modernized and digitalized client onboarding processes, reducing reliance on legacy systems
• Centralized repository for client data and documentation, enhancing compliance and expediting client due diligence.
• Significant reduction in onboarding times and improved efficiency in processing low- to medium-risk clients.
• Enhanced data quality, reducing rework efforts and operational costs
• Faster onboarding and reduced backlogs, supporting high-touch client service
• A foundation for consistent data across the entity, aligning with evolving regulatory requirements.
• Scalable solution for future global expansion.

Conclusion

In conclusion, Mizuho’s adoption of Fenergo’s KYC onboarding solution represents a pivotal step in modernizing its client onboarding processes and enhancing operational efficiency. By centralizing client data, streamlining workflows, and ensuring compliance with evolving regulations, Mizuho has significantly reduced onboarding times, improved data quality, and positioned itself for global expansion.

Key Facts

Bank Name: Mizuho Americas
Bank Founded In: 2016
Bank HQ: New York, USA
Vendor Name: Fenergo
Solution Implemented: Client Lifecycle Management KYC solution
Timeline: May 2019 – July 2021