The reality is bitter than what the title suggests. KYC is considered to be a nightmare for most companies to implement. However KYC has slowly seen the light of soft approval with organizations as time has passed. It all began from the least emphasised parts of the USA Patriot Act, as it called to implement anti-money laundering regulations and consequently required the verification of customers during onboarding.
As straightforward as it seems, this act saw marginal implementation here and there, where companies saw best fit earlier on. However, the time that we stand in today is different. The importance of Section 326 for CIP or Customer Identification Programs has become mandatory and what we see world over is a widespread implementation of due diligence programs. Fueled by the time and technology, the timing couldn’t be any better for companies to implement KYC- Know your customers services with the available digital providers for diligence purposes.
How KYC of Today is better than of Yesterday
Earlier KYC was considered as a long and laborious task of manually cross referring identity particulars against external departmental resources, public repositories and registers. This not only took time, usually days upon weeks but also proved to be highly inefficient. As demand increased and simultaneously fraud too, the requirement for improved KYC was the need of the hour.
As technology improved side by side, the standard KYC processes saw improvement, where identification procedures became streamlined through improved internal practices. However, what truly set apart the KYC of today from the previous era. Is the fact, KYC has incorporate automation at a level previously unattainable. That automation has seen the inclusion of Artificial Intelligence within the processing of KYC logic, to improve not only accuracy but also consistency. This streamlining led to the formation of what we term as digital KYC.
Digital or automated KYC has been fueled with the rapid advancement in technology and the global shift towards digital trade. This includes not only the concept of e-commerce but also the performance of digital monetary transaction and associated procedures. As greater number of mobile user wanting to open bank accounts increase and carry out mobile transactions. Rudimentary KYC processes cannot keep up to the fast paced quick verification requirements, forget manual KYC.
KYC of today has not become the best just out of the blue, but rather after long years of gruelling trial, error and genuine need and threat. Why threat? Fraud of course. Digital fraud is on the rise, irrespective how much KYC has progressed. In order to curtail any sort of fraud and protect digital businesses. The requirement to vet potential customers of their identity with asureity has become vital for any business process. The saviour? Digital KYC. At Least if not entirely, but definitely more protected to combat and mitigate threats while on-boarding more individuals.
Companies should consider KYC as a means to be more digitally transparent and fulfil their KYC needs from providers that specialise in scalability and multi use-case flexibility, like Shufti Pro for example. These
providers ensure quick KYC for users. More so, in documents and languages from 20
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