There is a general consensus across customers and businesspeople that KYC/AML processes are essential to keeping businesses and customers safe, and the issue with KYC does not lie within the concept, but rather within the execution. What could be done smoothly is executed poorly, often due to manual processing that creates a friction filled onboarding process, which is not entirely secure, and is certainly costly.
Outdated execution methods to meet KYC/AML regulation requirements need to be revisited and revamped. Modern solutions to modern problems are required, and these solutions need to be able to fix bottlenecks that make companies vulnerable to identity fraud and crime, while simultaneously being able to adapt to new regulations that are constantly being passed down. It has become evident that KYC ID verification needs to be more efficient – faster, and more cost effective, both without decreasing the quality, accuracy, and safety of the processes. Even with high costs and long, tedious procedures, 84% of businesses still struggle with KYC, ID verification, and onboarding, as they feel manual procedures still don’t entirely guarantee a customer or employee’s identity.
As a result, automation of these procedures is the best solution as it removes the human element from KYC. By streamlining the identity check processes, individuals can be verified in seconds using an accurate system, and the pain points of traditional onboarding can be ironed out with new, quick digital onboarding. In addition to this, digitizing and automating KYC/AML can lead to an increase in efficiency, as the time, cost and potential errors of manual KYC processes are eliminated altogether.
By using digital ID verification, and automating the KYC/AML process largely, onboarding costs can drop by as much as 90%. This is because automation is a one-time cost, and onboarding times would drop from days and weeks to seconds and minutes. Not to mention, the costs of inaccurate or incorrect KYC, the costs of fraud, and the cost of the time it takes to traditionally carry out these processes, are eliminated almost entirely.
It is clear that the most effective solution for businesses that need to comply with KYC regulations, is to put in place digital identity systems to increase efficiency. This reduces the time, costs, and inaccuracies that go hand in hand with manual processing, and that are eliminated with digital processes.
Idenfo is an ideal platform to transform your business, and move away from manual KYC processes and towards digital processes. Idenfo offers top of the line services, with features that use cutting edge technology to carry out processes such as digital ID verification, and risk assessment.