Identity verification is an essential process for businesses and organizations that need to ensure they are collecting accurate information on the identity of their customers or users. For Financial Service Providers (FSPs) this can include verifying ID documents, age, address, criminal history, or any other information that may be necessary for security or compliance purposes.
Taken together, these processes and checks are commonly referred to as Know Your Customer (KYC) — and they play a central role in complying with most Anti-Money Laundering (AML) regulations and regimes around the world.
Traditionally, identity verification has been a time-consuming and complex process that has been carried out manually by human compliance teams. It often involves multiple tools and systems, which can make it difficult to streamline and manage.
However, with the advancement of technology, businesses now have the option to implement a unified KYC platform that simplifies, orchestrates, centralizes and automates the entire process.
What is a Unified KYC Platform?
A unified KYC platform is a single orchestrated solution that combines various components in performing KYC AML checks such as ID document verification, biometric authentication, liveness detection, and AML watchlist screening. This allows businesses to verify identities in a fast, secure, and efficient manner. They also offer numerous other benefits for businesses looking to streamline their identity verification processes.
KYC identity platforms are designed to manage KYC requirements for FSPs. These platforms aim to streamline the onboarding process by providing a single source of truth for KYC information.
Traditionally, FSPs have relied on manual processes and paper-based documentation to verify the identity of their customers. This has proven to be time-consuming, costly, and prone to errors. With the rise of digitalization and increasing regulatory pressures, the need for a more efficient and accurate KYC process has become crucial.
A unified KYC identity platform integrates multiple data sources and automates various stages of the customer onboarding process. This includes data collection, verification, risk assessment, and monitoring.
By leveraging advanced technologies such as artificial intelligence and machine learning, these platforms are able to analyze vast amounts of data in a fraction of the time it would take for a human. Identity journeys can also be customized according to each FSP’s unique and specific KYC / AML requirements.
The Benefits of a Unified KYC Platform
Implementing a unified and automated KYC process for onboarding customers brings a wide range of benefits for FSPs operating in the modern digital economy. From the ability to onboard large volumes of customers to operating in diverse jurisdictions with complex financial regulations, FSPs that integrate unified and automated KYC have a lot to gain from the technology.
Let’s take a look at some of the main advantages:
The main advantage of using a unified identity platform is its flexibility. Businesses can choose which components and features they need based on their specific requirements, making it a customizable solution that can adapt to different industries and use cases.
Another dimension of flexibility is the ability to scale into new markets, without worrying about training a new compliance team on the specific rules and regulations of that jurisdiction.
With a unified KYC platform, FSPs can simply configure their KYC process to carry out the requisite checks according to which market they are operating — or where each customer is based. This provides unparalleled flexibility and potential to scale and grow your business.
More transparency in the onboarding process
More advanced, proprietary software such as KYC-Chain’s Multi-Scope feature allows FSPs to have even greater control of the process, with the ability to segregate different divisions or customer categories within a single platform,
Savings in time, resources and accuracy
Another key benefit of implementing a unified identity platform is the reduction of manual processes. By automating identity verification, businesses can save time and resources while still ensuring compliance with regulations.
Additionally, a unified platform offers improved accuracy as it removes human error from the process. With advanced algorithms and machine learning, the platform can analyze and compare data from various sources to verify identities with a high level of confidence.
By adopting a unified KYC onboarding platform such as KYC-Chain, businesses can also benefit from a simplified legal process, with a single contract governing all of their compliance processes.
Improved security & compliance
A unified KYC platform offers enhanced security measures. With biometric authentication and liveness detection, businesses can be confident that the person behind the identity is who they claim to be. This significantly reduces the risk of fraud and identity theft.
By carrying out consisted and uniform KYC checks through a unified platform, FSPs can also ensure that their compliance checks are air-tight — and that they have a clear and demonstrated track record of their executed KYC checks in the event that they are requested during a regulatory audit.
Improved User Experience
In addition to streamlining and securing the identity verification process, a unified platform also improves the user experience. With a smooth and frictionless verification process, customers or users are more likely to have a positive interaction with the business and continue using their services.
The KYC-Chain Platform: end-to-end, seamless compliance
Using advanced technology, automation, flexibility, security measures, and improved user experience, KYC-Chain’s unified end-to-end onboarding platform provides seamless customer onboarding and full compliance with a wide list of global jurisdictions.
Our clients include traditional financial institutions, fintechs, digital asset businesses, and many others who are either subject to KYC/AML regulations or anticipate that they might be in the future.
KYC-Chain’s technology suite is being constantly expanded and improved to keep up with evolving compliance and security challenges — and to provide our clients with the most effective and customer-centric onboarding experience possible in an evolving digital world.
Looking for a unified KYC onboarding platform for your business? Get in touch and we’ll be happy to arrange a demo of how KYC-Chain lets our clients securely and efficiently onboard new customers.