The path to a faster, more efficient KYC is clear with innovative technology solutions. Ready for a change?
FREMONT, CA: Know your customer (KYC) regulation is a cornerstone of the world’s financial system. Technology innovations and transformations are creeping into the KYC landscape too. In a few years, financial institutions will digitalize and automate more of their KYC processes. Artificial intelligence, data management, automation solutions are making KYC more efficient, even as regulations change. Here are some trends and technologies in KYC compliance that can move banks away from manual processes.
Multiple Data Sources
Banks are reliant on gathering useful data directly from clients through documentation. It is all too easy for data inaccuracies to slip in or for an organization to conceal ownership structures. The emergence of more data sources will make ownership more transparent. Automation, artificial intelligence, and natural language processing will help find ownership information from unstructured content. Over time, this will potentially reduce the need to gain documents from customers or at the minimum, detect anomalies where ownership may have changed or been disclosed incorrectly.
Advanced Data Solutions
Though financial institutions have extensive data and data sources at hand to verify customers, the volume is a challenge rather than an advantage. Siloed and disconnected KYC processes result in repeated data entry, mistakes, data quality issues, and onboarding delays. Moving forward, news solutions, including application programming interfaces, enhanced search capabilities, and robotic process automation, will lead to more efficient KYC research. By advanced data solutions, financial institutions will be able to eliminate manual steps, data inaccuracy, and process bottlenecks.
Analytics checks various external sources during the KYC investigation. The use of AI will focus on distilling large volumes of data to a few relevant topics, eliminating content not related to financial crimes. By reducing false positives, financial institutions can speed up the customer onboarding process.
Technology tools are the future of KYC, introducing flexibility and adaptability to a complex topic. As a result, financial institutions will gain a competitive advantage.
Check out: Top KYC Technology Companies