Automating KYC processes without sacrificing security and prevention

Melissa López
December 6, 2020

The KYC (Know Your Client) regulation has traditionally been characterized as long and cumbersome for clients of financial institutions, although it is necessary for the prevention of fraud and money laundering.

This method allows financial institutions to verify the identity of their clients in compliance with legal requirements.

However, with the arrival of FinTechs to the financial market, identity verification became faster and simpler without ceasing to be secure.

The KYC processes together with the new technological tools allow a healthy but efficient system, promoting that the knowledge of the client can be carried out by non-contact means.

Antit has extensive experience in the application of KYC systems in its FinTech developments, staying at the forefront of the highest technology, it is also a company capable of creating financial development solutions such as: payment gateways, digital wallets, robotic advisors and more.

Among the processes that make the application of the KYC regulations feasible in a manner consistent with the digital age are: Artificial Intelligence, automated robotic processes and Big Data.

However, KYC processes, when performed in a non-automatic way by human agents, tend to be expensive and increase the operational costs of organizations. Additionally, users are subjected to long response times while verifying the provenance of funds and assets.

Subsequently, an analysis will be carried out to be able to detect if the documents collected are consistent with bank income and movements, which could be done in an easier and more efficient way, with a better user experience if the technology available for this purpose is used. .

Such as the automatic update of lists, the verification of transactions in real time, eliminating the risks of human error, guaranteeing a high precision of the data.

Consequently, the use of artificial intelligence and machine learning have been widely used to understand undefined data, looking for patterns that accurately identify potential risks.

Advantages of modernizing KYC

Robotics and data collection: it facilitates the access of financial services to superior quality data, in addition, to more efficiently collect the information necessary to complete KYC profiles, saving time and a more complete and reliable vision of risk.

Data analysis: making use of data analytics that provide a holistic view of risk in a broader and deeper way.

Digital transformation: biometric security that gives speed and confidence to the user.

Lastly, banking and financial institutions derive great benefit from developing an alliance with a FinTech that makes it easy for them to spread their high infrastructure costs among an extensive customer base.