Rethinking Conventional KYC processes

Banking CIO Outlook | Friday, March 15, 2019

Due to the introduction of technology, every sector passes through diverse filters of changes, and the banking sector is not a different one. Today customers are reluctant to stand in a queue to perform daily banking jobs; instead, they want to get the jobs done with a single click on their smartphone, and the technology-driven banking sector meets this demand properly. GP Bullhound's Technology Prediction has ensured almost 91 percent of customers depend on mobile banking.

In 2019, the technology is expected to refurbish the banking sector bringing massive changes. ATM service has immense popularity, but as per Statista, previously, European countries lost 353 million Euros due to fraudulent activities related to ATM. To deal with these frauds, this year, the banking sector has to move beyond the ATM monitoring solutions to make the service more reliable and customer-friendly. It is expected that remote technology solutions will play a pivotal role this year.

Another important change the banks need to embrace wholeheartedly is regarding the conventional KYC process which is complex, time-consuming, and open to several mistakes. By digitalizing the whole process of KYC, the banks will be able to cut short the crimes related to fraudulent and insufficient identity, and interestingly, this process does not demand the presence of a huge workforce.

BAI has showcased top ten mobile banking trends of 2019 through its new study, and according to BAI, the human digital banking strategy which ensures a better relationship between bankers and customers will gain huge currency this year. The introduction of Umpqua Go-To app, the first human digital banking platform is a vital step in this field, as it will provide the customer with the opportunity to select a financial expert, and to ask any question related to his problem or confusion.

Another vital aspect of this study coming to the forefront is the growing popularity of biometrics among the customers to replace the conventional system of a password. With the escalating numbers of smartphone users, the virtual interaction with the banks is on rapid growth, and amidst this changing scenario passwords often appear to be vulnerable. Therefore, 2019 will be the high time to think the proper replacement of conventional systems. Ultimately, in the ensuing years, banks have to become a suitable financial partner to the customers.

The growing dependence upon technology will certainly make several areas vulnerable before diverse cyberattacks, and so, the service providers have to pay proper attention to secure customers’ data; otherwise, the intention of offering better service may get hampered.

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