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Imagine that your bank account is set up in minutes with complete details being automatically fetched and you are guaranteed the highest level of security. You also enjoy the convenience of not having to update your information every time. The bank does it automatically and all you have to do is use the services seamlessly. The real player behind this mental peace is the KYC Solution that has streamlined your customer onboarding process. This article explains how to choose the best KYC Solution, the one that can smoothly execute customer onboarding.

The Main Features of an Industry-leading KYC Solution

1. Automated Identity Verification

A KYC Solution should be technologically sound in having automated processes for the two main aspects of Identity Verification such as:

  • Document Verification: It should allow customers to upload scanned images or pictures of identity documents from smartphones. The KYC System should verify the (ID Card, Driver's license, or Passport) uploaded to the system for verification of the user’s identity.
  • Facial Recognition: The KYC Solution should be able to efficiently verify a user’s identity by matching the uploaded selfie of the user with the picture in identity documents for an added layer of verification.

2. Comprehensive Compliance Checks

A KYC Solution must ensure full data compliance with the regulatory landscape of the jurisdiction to minimize money laundering and other financial crimes.

  • AML Screening: Anti-Money Laundering Watchlist Screening is an imperative aspect of a KYC Solution. It ensures that real-time checks are being conducted against the global criminal databases to identify individuals involved in money laundering.
  • PEP Screening: KYC Solutions should also possess efficient and accurate screening processes for Politically Exposed Persons lists. This will identify that the person holds a prominent position that may be exposed to money laundering and other crime risks.
  • CFT Screening: It should also identify and verify users against the lists of individuals involved in financing terrorist activities.

3. Risk Assessment and Risk Scoring

A benchmark KYC Solution utilizes a risk-based approach in identity verification procedures for efficient resource allocation. It will give risk scores to the users based on the risk they pose to the system.

  • Due Diligence: This approach allows businesses to maintain due diligence at organizations while implementing a KYC Solution having effective risk-assessment features.
  • Customizable Risk Parameters: KYC Solutions should be adaptive to different changing risks as per industries, regulatory landscape, and risk appetite.

4. Real-Time Monitoring

Ongoing Monitoring is crucial for KYC Solutions to remove any discrepancies and errors in the system. Also, it detects any suspicious activity or transaction via an account and notifies the compliance teams in case of potential risk anomalies.

5. Biometrics and AI-Based Approach

KYC Solutions should focus on biometric identification methods to enhance security tiers. Voice recognition, fingerprint scanning, facial recognition, and retina scanning are the major ways in which KYC Solutions can embed this feature into their customer onboarding solution.

6. User Friendly Interface

User Journey is another important aspect of a KYC Solution. Making the interface of the customer onboarding process on application software such that users don’t have to go through a complex process of uploading and verifying their data. User journey while a customer is onboarded should also guide a customer to use the system to avoid the hassle properly.

  • Intuitive UI/UX Design: A KYC Solution should have an interface that is tailored to the exact needs and usability of the customer.
  • Remote Accessibility: It should be accessible from anywhere in the world and through multiple devices including smartphones and laptops.

7. Scalability and Integration

KYC Vendors need to consider the factors of Scalability and Integration to accommodate customer growth without compromising the solution’s performance.

  • API Integration: Application Programming Interface integration is important for KYC Solutions to enable existing solutions and applications to become fully aligned and integrated with newer requirements of the industry.

8. Global Coverage

KYC Solution should have access to global databases of customer identities to ensure the coverage of different jurisdictions.

How does an Industry-leading KYC Solution streamline customer Onboarding?

1. Efficient Customer Verification

KYC Solutions who are top of the line leverage emerging technologies like AI (Artificial Intelligence) to automate the entire process. It reduces time & effort as compared to Manual KYC. Furthermore, Industry-Leading KYC Solution Providers will enable companies to swiftly and accurately identify their customers and maintain their financial integrity.

2. Prevention of Fraud and Money Laundering

KYC Solutions helps firms detect financial crimes at the early stages and provide robust support against criminals. Their identification mechanisms are highly sophisticated and can track any suspicious individual within a matter of minutes. However, the responsibility of taking legal action falls on the shoulders of law enforcement and regulatory agencies.

3. Cost Efficiency

Implementation of a robust KYC Solution also helps the fintech save costs on regulatory compliance that they can incur in the form of fines, fraud damages, and other lawsuits. Also, choosing the right KYC Solution is highly important to invest the right amount in the right solution.

Final Word

KYC Solutions plays a critical role in streamlining industries at a global scale. Customers are the backbone of any industry. The customer onboarding process is there to protect a genuine customer’s identity from getting mixed with a fraudulent one. So, KYC Solutions needs to consider the best practices in serving their fintech client as well as their customers. Regulatory Data Privacy Compliance standards can only be achieved if KYC Solutions, Fintech firms, and regulators realize the importance of customer awareness, and seamless user journey, and other necessary elements of KYC Identity Verification in today’s digital world.

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