A customer due diligence procedure where pertinent information of a customer’s profile is collected and evaluated for potential money laundering or terrorist financing risks is crucial for assessing and monitoring customer risk. It requires an extensive KYC program that consists of a customer identification procedure (CIP) for collecting and validating the data. This makes it necessary for financial institutions to adopt better technologies and help their compliance and risk teams verify customers’ identity.
One such technology is AI, which has become the bedrock for KYC and AML. AI allows a KYC system to think and automatically train and enhance the system’s outcome prediction accuracy over a period of time. An AI-based system can provide a dynamic questionnaire that can adapt as per the customer responses. Further, the system’s intelligent process automation (IPA) capabilities significantly reduce the KYC profile update.
Similarly, blockchainis also proving to be a positive disruptor with the potential to redefine and re-imagine the KYC/AML. It will enable financial institutions to keep up with changing regulations, quickly validate customer information for KYC. Blockchain can also help verify customer identity, with details like the source of funds, nature of the business, and provide ongoing monitoring along the way. To take the KYC process a step further, financial institutions are using social biometrics. Using this technology, organizations leverage a person’s footprint scattered throughout search engines and social media and gather valuable information.
At this juncture, many cutting-edge KYC solution providers are entering the domain with advanced and integrated offerings. To help the finance sector strengthen its operational capabilities and simultaneously enable growth in the industry, Banking CIO Outlook has compiled a list of the top KYC solution providers. The list comprises prominent organizations in the industry that address issues pertinent to the finance sector by implementing current trends. Besides, the magazine also includes insights from thought leaders in the sector on the industry trends, best practices, recent innovations, and their advice for aspiring CIOs.
We present to you Banking CIO Outlook’s, “Top 10 KYC Solution Providers – 2020.”