Easy Steps to a Fully Compliant KYC Onboarding Process

The customer onboarding process can be complex, but thanks to digital KYC onboarding, it has become simple, safe, and secure. It is vital to verify the identities of new and old clients. Doing KYC at regular intervals helps you to ensure that nothing has changed, like the address, phone number, etc., of your customers.

Do you know you can make the Onboarding process simple by opting for the video KYC process?

As we know, manual KYC is not as effective; there are frauds taking place. Every organization wishes to accurately verify customers and that too in a timely manner to allow its business function properly.

With the usage of digital technology for automating the ID verification process, businesses can provide a smooth experience to their staff and customers. With the digital ID verification, businesses can help onboard new customers as well as employees remotely in the time of the coronavirus pandemic. Digital KYC reduces risk by providing higher safety and facilitates compliance with regulations such as Anti-Money Laundering (AML).

How Digital Onboarding is Done?

Digital onboarding is a simple process, which doesn’t take much time. The user has to video chat with the video ID verification expert, and the expert ensures that the video call is not a pre-recorded one; it’s live. The expert records the video call, but the user is not allowed to do so. The expert asks the user to share his location coordinates; it’s done to ensure that the user is in the same country as the expert. The expert asks few questions to the user, and after that, the user is asked to show government-issued identity cards. He may show them into the camera, or he can upload them by clicking pictures. Artificial intelligence, facial recognition technique, document reader are used to ensure that the documents are not fake and the person on the video call is the same as on documents.

Many businesses are using digital technology or customer onboarding process as it is convenient. The person can complete the process from the comfort of his home. There is no need to visit the bank for the ID verification process. Also, bank employees had to spend a significant amount of time to complete the KYC process manually. Thanks to the video identification process, the process takes just minutes.

Final Words

KYC onboarding is a process in which the identity of the user is verified digitally. The user interacts with the KYC identification expert and shows or uploads documents. The process is a highly sophisticated one and follows security measures. It saves time and money for businesses as well as users. Users can complete the process from the comfort of their homes as they don’t need to be physically present in the bank or financial institute to complete the KYC process.

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.