Union Investment selects Fenergo for AMLR-ready KYC transformation

The asset manager said on Wednesday that it will deploy Dublin-headquartered fintech Fenergo's client lifecycle management platform across its business lines and subsidiaries, creating a unified framework for onboarding, KYC, screening, customer risk management, periodic reviews and case management.

"This initiative is not simply a compliance project, it is a strategic transformation programme designed to establish a consistent, enterprise-wide KYC operating model across the Union Investment group," said Bettina Tews, member of the executive board at Union Investment Service Bank AG, in a release.

She added: "We were looking for a partner capable of supporting complex, large-scale lifecycle management operations while helping us improve automation, transparency and customer experience across jurisdictions and business lines. Fenergo's platform and AI vision aligned strongly with our long-term goals."

The programme is designed to strengthen operational scalability, improve customer experience and support compliance with the AMLR, which comes into effect in July 2027.

Enterprise-wide lifecycle management

Union Investment said the implementation will introduce a single customer data framework, enhanced workflow automation and integrated client portal capabilities designed to simplify onboarding and document exchange processes.

The asset manager selected Fenergo following a competitive review process, citing the firm's client lifecycle management technology, KYC and AML expertise, compliance automation capabilities and consolidated customer data management tools.

A key element of the project will be the introduction of Fenergo's client portal functionality, enabling secure document exchange, automated communications and greater visibility into onboarding and review processes.

The programme will also establish a foundation for future artificial intelligence-enabled capabilities, including document extraction and classification, workflow orchestration, screening optimisation and ownership structure analysis.

"Union Investment is taking a strategic and forward-looking approach to transforming client lifecycle management across the organisation," said Ruth Ormsby, managing director of Fenergo EMEA, in a release.

She added: "Financial institutions are under increasing pressure to replace fragmented onboarding and KYC environments while preparing for rapidly evolving regulatory expectations. By partnering with Fenergo, Union Investment is creating a centralised, scalable enterprise operating model that will improve operational efficiency, strengthen compliance readiness and enhance the overall client experience."

The transformation programme comes as Union Investment continues to adapt to broader changes across European financial markets. Last month, the asset manager executed the first institutional Euribor options block trade on Eurex since the exchange relaunched its short-term interest rate derivatives market in 2023, a development Eurex linked to efforts to build liquidity in EU-based rates markets ahead of the full implementation of EMIR 3 active account requirements.