Blog
/
KYC
/

Manual KYC and Risk Data Collection Is Costing You More Than You Think

Collecting information for Know Your Customer (KYC), Due Diligence (DD) and Third-Party Risk Management (TPRM) is a critical part of any compliance or procurement program. But when those processes rely on email threads, spreadsheets, shared drives and scattered PDF forms, the costs go far beyond lost hours and ultimately impact your risk posture, your relationships and your bottom line.

Manual Collection can be inefficient - bringing undue risks

Every time your team sends out another Excel form or waits on an outdated document via email, your process slows down, and your exposure goes up. Inconsistent formats lead to missing data. Manual follow-ups delay onboarding. Poor document versioning undermines audit readiness. And as your third-party ecosystem grows, these inefficiencies scale with it.

What starts as “just the way we’ve always done it” becomes a silent productivity killer.

The Hidden Costs You Don’t See Right Away

  • Operational drag: Compliance and procurement teams lose hours chasing documents and formatting responses instead of focusing on analysis and risk review.
  • Increased error rates: Manual input introduces inconsistency, duplication and missed fields that can go unnoticed until a regulatory or audit issue arises.
  • Delayed onboarding and partner friction: Slow response times and confusing forms frustrate counterparties - impacting relationships and commercial momentum.
  • Limited visibility: Without a structured system, it’s hard to know what’s complete, what’s pending and what’s out of date.

Ways to fix inefficient KYC / DD / TPRM collection

Modern organizations are moving away from ad-hoc collection and toward structured, automated systems. That doesn’t mean giving up control; it means taking control of the process with tools designed for secure, repeatable and efficient data collection.

Subtle shifts - like sending branded, browser-based questionnaires instead of PDFs or reusing previously collected documents - can save hours per request. When your platform knows which data points are still valid and which need updating, the result is faster turnaround, cleaner compliance records and less strain on internal teams.

A Better Way to Collect KYC and DD Information

Purpose-built solutions - and of course, we are parital to our KYC Collector - address these issues by offering structured workflows, reusable questionnaire templates and simplified outreach. Instead of rebuilding every request from scratch, teams can:

  • Centrally track every third-party relationship.
  • Automatically flag outdated or missing items.
  • Share forms and documents securely - without messy and insecure back-and-forths over emails.

Most importantly, the experience is cleaner for everyone involved. Recipients complete forms in a modern interface that’s intuitive and easy to navigate, while your internal team stays in control with clear dashboards and real-time status.

In summary

Manual collection may seem like a harmless default, but over time, it drains resources, slows growth and introduces unnessary risk. The smarter alternative is a system that makes compliance efficient, repeatable and scalable.

When the tools fit the task, your team can focus less on chasing documents and more on reducing risk.

***************

WANT MORE? SOME RELATED KYC ARTICLES

KYC vs KYB: What’s the Difference and Why Both Matter for Compliance

How to Build a Scalable KYC and Customer Due Diligence Program Without Adding Headcount

Why Ongoing Monitoring Is the Top AML/KYC Challenge in 2025

Third-Party Risk Management vs. KYC: What's the difference?

Solving KYC Challenges in Investment Projects: How Funds Can Improve Risk Management

Relevant products

Avallone products and services that can help you

KYC Hub
Immediate, secure and easy management of all your KYC efforts including built-in organization.
KYC Collector
Collect KYC - including information and documentation - from anyone outside of your organization.
KYC Responder
Quickly and easily respond to KYC questionnaires coming in from your counterparties - such as banks, law firms, auditors and more.