FinTech and KYC: Streamline processes easily and safely

Friday, August 6, 2021

FinTech and KYC: Streamline processes easily and safely

The digital transformation involves and automates all the processes that previously required cumbersome hours in front of a pile of papers such as KYC (know your client).

Digital transformation involves and automates all processes such as KYC, turning frustrating waiting times into faster, easier and safer customer interaction.

Currently, with the incorporation of new technologies, financial entities manage to comply with the KYC requirements (knowing their client) in a more automated way, reducing costs.

The KYC helps to demonstrate that the client is who they say they are and allows to mitigate risk, prevent fraud, comply with regulatory compliance obligations, such as the rules against money laundering through the obtaining of reliable data.

In addition, it makes it easier not only to verify your identity, but also your financial activities and the probability that you participate in criminal activities, the KYC is mandatory for banks.

Our identity can be digitally corroborated from a mobile device by capturing an identity document , later the KYC mobile applications or mobile registration, you can fill out forms and execute additional validation requirements reducing the data entry manually. This applies both at the App level and on the web.

With this system, the type of account in question, the typical size of the transaction, the quality of the information offered by the customer, as well as where the customer's transactions originate or end from.

Furthermore, risk assessment monitoring should be done on an ongoing basis so that they can be identified as customer-related information changes, including monitoring their financial transactions.

The main objectives of the monitoring are:

  • Detect suspicious financial transactions (for example, spikes in activity) and strengthen anti-money laundering efforts
  • Keep the customer identification, the information about the final beneficiary and the purpose and the intended nature of the registration of the business relationship updated.
  • Identify unusual cross-border activities

Financial institutions are aware of the importance of being able to take advantage of instant electronic identity verification, this improved workflow leads to higher conversion rates and, ultimately, increased revenue.

FinTechs are a great ally in this area, incorporating identification verification systems to guarantee that it is valid and not altered.

Capture of biometric data such as selfies and fingerprints to counteract them with the identity document thus increasing identity security.

At Antit we have extensive experience in the matter, we have participated in the development of four of the main neobanks, located in the five countries, where we have participation in the digital architecture and total implementation.

Likewise, thanks to the incorporation of banking-grade identity verification platforms, the archaic and long processes that clients were subjected to in order to access a service in a financial institution can be dispensed with.

Additionally, facial recognition ensures that you have a robust and comprehensive technology stack at your disposal in automating financial agreements, from a client completing an application, to digital identity verification, electronic delivery, filing, signing an agreement and the capture and management of all supporting audit records.

Geographical IP location, device verification, and corporate verifications also contribute to building a strong verification profile for an applicant.

Also, among other advantages of KYC automation are: the elimination of paper forms that cause friction and increase the risk of abandonment of the customer looking for speed, ease and convenience.

Similarly, manual data entry increases the risk of human error and acquisition costs.

The KYC solution that is chosen must be effective in terms of profitability as well as its ability to create a positive customer onboarding experience, that will be the key to success and from Antit we can help you in every part of the process.

Melissa López
August 6, 2021