The importance of artificial intelligence cannot be
ignored in the modern day KYC - Know Your Customer process. As technology has
grown by leaps and bounds so have the processes relating to KYC, in specific Identity Verification. Multiple factors
like fraud and regulatory pressure have called for the improvement in
traditional KYC processes to better address fraud. Also, the need to establish
airtight measures to paint a more clear picture of the customer is becoming a
regulatory norm. Incorporating the best technology available, the answer was AI-poweredKYC compliance.
The usage of AI for compliance purposes has greatly
impacted how KYC is practiced today and the results produced. Potentially
opening a new way for digital businesses and financial services to fulfill
their compliance obligations. Had AI-powered KYC compliance not see light, it
would have been a very different business and compliance environment. Let’s see
how AI continues to impact the KYC industry:
Redefining what
real-time is
KYC solutions running on an
AI background re-purposed the meaning of real-time. Where speed was measured
across in days and weeks before. The processing of KYC information within a
minute was considered near to real-time in comparison.
Business
profile and due diligence
KYC is a lot about customers,
and a lot about a customer is their profile or persona. In respect to
diligence, KYC measures are applied based on the outward profile of the
business or customer. Basically, due diligence measures are applied according
to the categorized risk-profile of the customer or businesses.
Anti-money
laundering screening
Without AI-powered KYC
compliance, the capacity to screen individuals across multiple lists would not
be possible. The AI allows integration to these databases either directly or
through the help of an API. The quick processing through thousands of domestic
and global lists of PEPs, exposed personal and compromised individuals is made
possible by AI-powered solutions.
Client
Experience
AI allows an ideal balance of
seamless customer experience while mitigating risk through a modern UI facet.
Where this digital solution establishes a fluid customer journey throughout the
verification process with minimal customer inconvenience.
Accuracy and
Consistency
AI operates on specific and
consistent protocols, functions that are standard across all with the notable
exceptions. However, the majority of the verification's undergo the same
parameters of scrutiny. This ensures results are consistent across the bulk of
the verification's. Also, most verification are performed in less than a
minute(standard practice), thus more customers are on-boarded, allowing more
individuals to be processed and the backlog to be reduced.
Document Management
A neat advantage AI has is
its ability to process and utilize machine learning to process global
documents. KYC providers need to verify documents from users around the world.
As global identity document are used, the AI is able to services KYC requests
for document verification by utilizing stored templates as a reference for
pro grammatical comparisons.
The impact of AI on the KYC industry is evident and
clearly outmatches any predecessor KYC practices. Many digital businesses are
able to perform real-time ID verification because of AI-enabled KYC solutions
that cater to not only varying industry requirements but also global
regulations. AI-powered KYC compliance is what global businesses should be
seeking to implement and accept as their partner in compliance.
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