Many C-suite members see KYC & AML solutions as a burdensome cost that has been forced upon by the regulatory demands. Here Sebastian Zilliacus, VP Asia for ZignSec, asks “If compliance is mandatory, why not utilise its solutions into your revenue strategy?”
Although acquiring users has never been easier as today, the intense competition is increasingly driving the acquisition cost upwards – specifically as the battle of attracting the best customers that provides the highest lifetime value (LTV) is constantly chasing you.
Digital transformation is forcing companies to change their business models and adapt to the new market reality. What’s interesting is that companies are not driving this change but their customers.
So, what does digital transformation mean and what does the global digital customer want? Simply put, it is about changing the way a business interacts with its customers and how they provide customers with a consistent experience and value.
The faster and more accurately you can onboard a customer, the happier a customer becomes, the more engaged the customer will be with the brand, and the higher LTV a customer becomes, which in turn increases the revenue for the company.
In order to keep up with these customers, your business needs to embrace technology to deliver a tailormade customer experience.
What does a tailormade customer experience look like?
It should visually entice the customer, doesn’t need to request for too much information upfront, is fast enough to not bore a customer, provides an identification solution that the customer is familiar with, and adhere to the regulations.
Today, although numerous global KYC service providers offer powerful KYC software solutions incorporated with undoubtedly innovative strategies, their products often leave clients unsatisfied. These dissatisfactions include longer verification time, false-positive results, extra costs and other frustrating constraints that prevent business from achieving its goals timely and effectively.
The biggest bottlenecks to challenge in AML and KYC verification processes to date are: insufficient automatisation, too many integrations, and lack of integration with other elements of KYC and AML. However, by using orchestrated automation, service providers and financial entities can significantly trim these processes for more efficient KYC practices. Instead of sending data to a torrent of unsustainably expensive, slow and unmotivated verifiers, automation can verify individuals using highly accurate systems in seconds.
The main challenge for the future of client onboarding is how customers can prove their identities in an age where regulated companies rarely interact with their customers face-to-face.
We believe an orchestration of automated micro-services is the future of KYC. By enhancing the onboarding process, it allows regulated institutions to streamline their KYC process and simultaneously raise the bar of financial crime risk management around the globe.
Innovators in this field, such as ZignSec, orchestrate the automation of future onboarding with locally accepted personal identity verification methods that provide KYC and AML services. As a company, we can help both regulated and non-regulated businesses reduce onboarding time from days to minutes and reduce cost by more than 60 per cent at the same time.