Potential of AI in KYC in 2020

 Verifying a person’s identity seems simple, but despite its simplicity, KYC has become one of the most time-consuming, confusing, complex, and costly processes for banks and financial institutions.

As of today, AML costs for financial institutions are sky-rocketing $25.3 billion. Of course, KYC (Know Your Customer) is a subset of this, but despite against staffing investments, KYC workflows were falling short. With this, business growth and customer expectations were also suffering a lot because of these lengthy and time-consuming KYC processes. Officials have to sort through volumes of data and documents to monitor customers and their identity proofs. But, it was indeed time-taking and tedious too. According to experts, it is anticipated that 25% of applications are abandoned due to lengthy KYC friction.

 

These figures are quite staggering and more than overwhelming; there is a way to reduce risk and add greater efficiency. But, it’s no longer a case anymore, especially after the integration of AI technology. Today KYC using AI and automation are becoming the go-to options to solve-out the troubles of modern-day KYC and AML.

 

Applying AI (Artificial Intelligence) to KYC (Know Your Customer)

 

The integration of AI in KYC is saving banks with an estimated £2.7 billion per year. 

 

Today, process, automation, and IT are a significant part of it, and so is AI (Artificial Intelligence). But when building this AI strategy for KYC, it is important to know what to expect and how to evaluate to see if the desired goals are achieved or not.  

 

If you someone who wishes to reap these profits in your finance-related business, then it would be best to avail some professional assistance for AI in KYC. No wonders, it has so much to offer to everyone and indeed offering some great benefits.

 

How is AI Driving changes in KYC Today?

 

Well, the KYC (Know Your Customer) arena is facing some of the driving changes that must be taken into consideration before implementing it. Some of them are:

Now there is more regulatory scrutiny, which is having more punitive outcomes these days.

There are ever-evolving regulations like 4AMLD, FATCA, MAS that vary extensively across the globe.

The KYC documents are retained for a longer time, and as a result, it works great in document management.

 

These are some of the ways in which AI is making its big impact in the KYC process today! It would not be wrong to say – this AI in KYC technology is working for the good of people.

 

Conclusion

 

Today is a time when artificial intelligence is rapidly approaching a place where it is working great for future growth and addressing all the KYC challenges. When integrated and applied rightly and effectively, it gives banks and financial institutions the ability to piles of data, and keep up with all the rules, and offers a user-friendly onboarding experience.