Making Way For Digital KYC: Improve The Customer Onboarding Experience!
The financial sector has faced considerable turbulence since the crisis of 2008. A lot of things have changed since then, and businesses have been forced to adopt new technologies and go digital with their operations and processes. KYC, or Know Your Customer is the process of verifying the details of the customer, and it is mandatory in financial and many allied sectors, as per FINTRAC / AML regulations. While the applicable laws and regulatory norms may differ, there is no moving away from the need for KYC. Paper-based KYC has always been a cumbersome process for banks, financial institutions and customers alike. In this post, we are discussing further about digital KYC and how it can help your business.
The basics of digital KYC
As the name suggests, digital KYC is all about simplifying the process of KYC by going digital. Typically, businesses invest in a service that offers a digital KYC API, which can be integrated into their platform and app for instant verification of consumer details. From the name, address, to financial details and bank information, you can verify what’s required to satisfy FINTRAC’s requirements for identity verification. There is no denying that digital KYC has simplified things for businesses around the globe. The benefits are tangible and real. For example,
- Your business can reduce the time required for KYC in the first place.
- Furthermore, you can avoid erroneous details in the system and streamline the process.
- Improve the way customer information is handled
- Prevent misuse related to KYC
- Stay compliant as per the regulations
The focus on customer onboarding experience
As an entrepreneur, you would want to get more customers to sign up for your products and services. For that, the process of signing up has to be easy and simplified, and digital KYC just ensures that. In fact, this is one of the foremost reasons why businesses are switching to digital KYC, as it allows them to enhance the experience of new customers, besides competitive advantage in the industry.
If you want to make the most of digital KYC, make sure that you select the right service. It is absolutely necessary that the company offers support for adopting and making the most of the digital medium. Most known digital KYC APIs rely on the bank account of the customer as a source of verification, and you can be assured of 99% reliability.