We all know how important the KYC processes are for any business operating today. Especially the importance of the onboarding strategy for a business to implement. Ever since Banks and Financial Institutions saw the light of regulation, which was since forever. The significance of Know Your Customer measures has become even more crucial for the continued successful operation of any Financial entity.
Businesses are operating in an environment that is not only more difficult and competitive but also a lot more regulated. Considering the stringent requirements for KYC measures, that continue to see frequent change, the requirement for new and improved KYC processes is vital. For example, ‘Shufti Pro replaces slow KYC processes’ was news that came in recently, highly the fact that KYC providers are pressured to improve their services. Let’s have a look at how they are doing it, and how modern KYC processes have an edge on their predecessors.
Why the Need for For Improving Existing KYC Processes
Existing processes necessitated changed due to a multitude of factors that have interlinking nature of some sorts. Traditional KYC processes before anything were slow and laborious. It’s not they were nonfunctional, but not practical considering the time and resources required for each instance of a check. KYC is enough of a hassle by itself, an additional backlog of hours, days and even weeks was very harmful to the customer experience. Businesses risked losing customers to other operators who could perform KYC checks faster and better than their original providers. These long delays in the KYC process invited fraud to take place and businesses more exposed to the likelihood. As fraud and the KYC backlog increased, the regulatory pressure intensified necessitating a change for something better.
Modern-day KYC against Traditional KYC Processes
Modern Day KYC considers the requirements laid out by present-day anti-money laundering regulations from around the world and local jurisdictions. Incorporating regulatory requirements within the KYC process ensures optimal operations from a regulatory perspective and allows greater serviceability to a multitude of business. For example, news came in, Shufti Pro replaces slow KYC processes. The most probable answer to this is. They have shifted towards a more Digital KYC oriented practice that incorporates the latest technological advancements in the form of Artificial Intelligence.
A programmatically smart solution enables businesses to utilize the flexibility that comes from a configurable solution. The multitude of requirements from anti-money laundering regulations can be read by the AI and enable it to smartly take decisions based on each varying requirement. This allows companies with modern KYC embedded solutions or third party service providers to ensure multi-jurisdictional support and global document coverage. An automated solution has a greater capacity to deal with KYC verification, consistently and much more accurately. Reducing the backlog from manual systems earlier and ensuring friction-less operations. Balancing verification requirements and customer experience, through a modern UI-UX facet.
KYC measures are a fundamental business process to include, especially during the onboarding process. In order to vet customers of their identity particulars and ensure legitimacy. If companies wish to be compliant and perform trouble free operations, should consider identity verification service providers, possessing the latest KYC related features and procedures.