Customer onboarding processes can still present significant challenges, particularly in the financial sector. that a multitude of financial institutions and banks still struggle to rise to these challenges for optimal business growth.
In the last few years, leading compliance and risk managers have been known to implement a comprehensive KYC (Know Your Customer) program, with automation serving as the core strategy and solution to solve specific client onboarding challenges.
KYC programs have become a common aspect of many companies’ procedures, designed to verify customer and lead identity as a preventative measure. Assessing the potential risks, the business relationship may pose – legal, reputationally damaging or threatening business growth and/or security, KYC programs are now developed and implemented in companies globally.
With the frequency of fake news, corruption, and money laundering, KYC policies have evolved and been adopted as a critical tool for combating illegal activities – on and offline.
One of the central motives driving the development and implementation of KYC strategies is the prevention of money laundering via financial institutions or banks. Banks have become increasingly aware of customer activity, gaining insight on transaction history and patterns, optimizing bank risk management. Diverse businesses worldwide are implementing game-changing KYC strategies and solutions, with policies typically comprised of customer identification procedures, customer acceptance policy, transactions monitoring and risk management.
With a prioritized list of goals combined with use of an advanced KYC solution, companies can leverage productivity, reducing the time frame for client onboarding, while also increasing accuracy and ease of decision-making.
Some of the challenges designing, implementing and adopting KYC processes can pose:
Digital compliance with regulatory requirements in real time
Eliminating the need for manual identity verification processes
Accelerating time-consuming and tedious processes and procedures
Optimizing resource allocation for accurate and complete profiling
Reducing operational cost or risk of loss and damages
Enhancing client onboarding journey by reducing identity verification time
To create an effective KYC process, identity verification data must be up-to-date, reflecting any and all changes in customer profile and relevant documentation. As this task poses specific challenges, banks are often deterred from reporting changes to financial institutions.
KYC procedures typically include the collection and analysis of basic customer identity information (such as official government IDs and other documents, along with additional identifying data and learning customers’ digital footprints), name matching against lists of known parties (such as Politically Exposed Person – PEP), determination of a customer’s risk to the organization (based on indicators of the customer’s potential to money launder, finance terror, or commit identity theft), predictive analysis and evaluation of customer transactional behavior, and monitoring customers’ transactions in parallel with predicted behavior and profile records.
Cobwebs Technologies developed a solution designed primarily to address KYC strategies in the financial industry.
Our automated AI-powered web intelligence platform empowers compliance and risk managers with a 360-degree and precise view of customers’ entire online activity data in real time. Customer onboarding processes are simplified, smooth and driven by wise and informed decisions within a minimal timeframe.
Our solution’s automated KYC key benefits include:
Secure and private verification of identity and potential risk
Assess money laundering and fraud risks
Efficient business verification in minutes