One of the compliance regulations required for verifying customers’ identity and due diligence is KYC. It comprehends client conduct and tracks and reviews their financial activities to detect fraud. The manual KYC process is not effective due to the modern fraud techniques. Banks actively seek automated KYC providers to enhance compliance, prevent fraud, strengthen security, and ensure customer access. In this article we will delve deeper into the industry-leading KYC solution and how it can help businesses to combat fraud.
What is an Automated KYC solution?
A digital system known as an automated KYC solution enables businesses to quickly and easily verify the identity of their customers. It uses advanced technology like artificial intelligence rather than doing everything physically like checking documents, doing personal investigations, or confirming data. It saves time by accelerating processes, decreasing desk work, and guaranteeing compliance with KYC AML regulations. For instance, rather than having somebody check every client’s ID, the best KYC provider can utilize biometric verification for identity verification.
The top KYC providers are listed below. These automated KYC solutions provide a variety of features to assist businesses in effectively managing the processes of identity verification and compliance.
- iDenfy
- Veriff
- HyperVerge
- Onfido
- SEON
How to Choose the Best KYC Provider?
To select the appropriate automated KYC verification, thorough research is required. As a business, you need to think about what you need and how the verification process works. For example, whether you need to do document verification or liveness detection. If only document verification is required then there is no need for selfie checks. The following factors are considered while choosing a top KYC provider.
1. Ease of Integration
An automated KYC solution should provide seamless integration such as API integration, MobileSDK integration, QR codes, etc. KYC integration is often based on APIs, which provide seamless communication between applications. One of the key benefits of KYC providers is that companies don’t have to store customer data because third parties can handle large amounts of data more efficiently.
2. Large Document Database
Some KYC providers have only limited document coverage for specific countries. It is due to restricted global database access. Regular updates of the KYC provider database can ensure the quality of the KYC process. Every country has its information handling regulations, strategies, and methods. To solve this problem, choose an industry-leading KYC solution with an extensive document database. To successfully test an automated KYC solution, review the approved documentation and verify any identity during the Proof of Concept (POC) phase.
3. Drive Conversions
You ought to pick an automated KYC solution that gives versatile and tailored KYC check options to help your business grow. Real-time identity verification is an important feature when choosing the best KYC provider. The ID image should be converted to text automatically by the automated KYC software.
Benefits of Automated KYC Solutions
One of the vital benefits of an automated KYC solution is that clients can do identity verification without giving extra data. Here are the fundamental benefits of utilizing an industry-leading KYC solution.
- Automation eliminates the need to manually enter data and approve documents. It accelerates the verification process by speeding up customer onboarding.
- KYC automation uses advanced technology to effectively detect and prevent fraud. It protects companies from financial and reputational damage.
- Automated KYC solution reduces the risk of human error. The use of AI and machine learning ensures accurate customer data.
- A better onboarding experience is provided by a faster and simpler verification process. It increases customer satisfaction and loyalty. By improving the customer experience through automated KYC solutions, onboarding costs can be cut by 70%.
- Organizations can diminish costs related to manual cycles. Top KYC provider gives better resource allocations.
- Companies can stay compliant with minimal effort because automated systems can be updated quickly to meet changing regulatory requirements.
Bottom line
The innovation makes automated KYC solutions more productive, precise, and steady. KYC provider assists with improving the KYC interaction, lessening expenses, and incrementing consumer loyalty. An industry-leading KYC solution makes it simpler to upgrade KYC processes by using advanced technologies.