The reason why financial institutions are interested in KYC technology as a utility is because of the growing customer expectations, innovative technology, and efficient compliance and operations.
FREMONT, CA: The C-level executives face significant pressure to provide a safer and faster customer onboarding process. To resolve this issue, the capability to handle client lifecycle events and milestones through re-useable, verified, and up-to-date customer information.
Collecting, validating, and processing customer data and documentation to accomplish the correct compliance decision makes the onboarding process a lengthy task. Additionally, most time, FLS reach out to obtain information about a client from a different location or business field, prolonging the onboarding process, delaying time to revenue for the service provider, and high abandonment charges.
Most institutions are still addressing the compliance issues with added headcount instead of trying to tackle the underlying causes.
The financial institution is considering two crucial areas to transform the KTC compliance and become more digital, simplify, and cost-effective.
Digital KYC
Internal digital KYC processes develop an ecosystem of data and system providers to allow straight-through processing for compliance and onboarding.
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eKYC Utilities
The first recurrence of KYC utilities showed the requirement for consolidated and authenticated customer information. But the technology and distribution models supporting these utilities failed to bring any real changes.
Financial institutions are interested in KYC technology as a utility because of growing customer expectations, innovative technology, and efficient compliance and operations.
As financial institutions look towards enhancing the client experience, significantly minimizing onboarding times and providing value-added services to the clients. eKYC utilities can offer digital and overall access to updated KYC data, accelerating and streamlining the client onboarding process.
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