KYC Challenges
According to a study carried by Thomson Reuters in 2016, a surprisingly high percentage (91%) of corporate clients have claimed they didn’t have a safe KYC experience.
Furthermore, the study highlighted a 23 percent increase in the time needed for onboarding a new customer. It is expected to further rise in the coming years due to increased stress from administrative authorities.
Given the high level of users describing a poor KYC experience, it is apparent that service providers face challenges that demand to be defeated to avoid losing clients or engaging them in a method that harms their overall experience.
What are the Main Challenges?
Building a balance between the inadequacy to undergo an administration: the intense practice of securing KYC information without losing the effectiveness of the experience when onboarding new customers.
Keeping records up-to-date as demanded by the regulatory authorities: promptly examine them in a complex administrative rule that needs to be based on reliable and appropriate reminders.
The KYC cost and optimization implications of collecting data from various references: provide access to due diligence information and add these to the appropriate data storage.
The balancing act of making documents ready for the respective organization without disclosing sensitive data to unauthorized personnel: should be maintained to avoid data leaks and shield confidentiality.
Some of the More Common Challenges Faced During KYC Monitoring
· Too much Time and Money spent on false positives.
· Undetected vulnerabilities due to poor information of data.
· Inadequate knowledge of alerts leads to inefficiencies.
· Out-dated methods of keeping the records.
· Lack of ability to configure KYC systems.
Best KYC Practices
#1. An Automated Mobile-First Solution
Users are addicted to using their smart devices and are frustrated when they don’t enjoy the initial banking experiences. The offender is paperwork-laden processes that force users to seek out digital-first alternatives. Mobile Applications should be as straightforward to complete on mobile as on a computer. Cutting-edge banking technology empowers users to start and finish their transactions with a simple text message from their smart device at their ease.
#2. Omitting Paperwork
Adaptability can be submitted for how agreement articles, legalese, and lengthy terms are presented and evaluated by customers adopting digital contract technologies. The new solutions empower banks to get legitimately binding customer approval from wherever they want. The users can access and sign an authorized document by clicking on the link in a text message without demanding anything. The intelligent eForms guarantee that the process is finished quickly and precisely. Also, eForms can be resigned from any device, which is a huge plus point for many users.
#3. Digital KYC
The advantages of digitizing the ID collection process are numerous; the most prominent is lowering fraud. Financial organizations can prove that IDs are authentic and relieve their workers of this tension by automating the ID validation. Moreover, digital ID collection excludes the necessity to scan and file paper copies of identification. Alternatively, the data can be stored digitally at a further secure and accessible place. In conclusion, Onboarding time is reduced, fraud risk is dropped, and even the most stringent ID and verification requirements are met promptly.
#4. Automation and Real-Time Support
A digital customer onboarding banking process permits data from Customer Relationship Management (CRM) practices like custom-built solutions to automatically populate contracts for supplementary services to grow the relationship. It preserves time and confirms the usefulness of existing banking relationships. It’s a smooth, mobile-friendly system for customers to drive a complicated application procedure.
Advantages of Improving Customer Onboarding
· Consistency: Consistent plan and cohesive domain knowledge show users that the application is offered by someone they know and can trust.
· Ease of Use: An automated application experience makes it comfortable for the users to operate or fill in their details.
· Clarity: Connecting if the users require advice is a hallmark of the most excellent customer experience.
· Efficiency: Customers can save time and avoid submitting documents like account statements by connecting additional accounts and pre-filling form questionnaires.
Conclusion
Customer onboarding is one of the solutions to the achievement of any customer-centric business, and when not correctly performed or not at all, it could cost the company. Looking for someone to implement a robust KYC solution to make your onboarding and KYC process simple, safe, and secure
Get in touch with Blue Brick today.
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