Numerous money laundering and data theft scams have rocked the financial sector in the last couple of decades. It is not surprising that regulatory and compliance needs have expanded in recent times, and businesses in financial and allied sectors have been forced to adopt new technologies and invest in systems that prevent such consequences. Before digitization became a practice, financial institutions had to complete Know Your Customer (KYC) formalities using physical documents and forms, and that had consequences. With digital KYC, we might have an answer to that. In this post, we are discussing further on why it may mean for your business.

Digitizing KYC for everyone’s good

Customers know that KYC requirements are mandatory, and yet, most people have expressed their disliking for the formalities, primarily because it does impact their onboarding experience. Digital KYC might offer an answer that companies have been looking for. With digital KYC, it is possible to reduce numerous errors and the possibilities of physical data theft – aspects that have been a global concern for businesses. Your company can offer an onboarding experience that customers would look forward to, and more importantly, it is easier to keep up with competitors. At a time when every financial institution is thinking of digital KYC, it is rather impossible to keep away from the change. Also, it simplifies the process of compliance.

How to go for digital KYC?

Today, there are companies that provide an API or Application Programming Interface that offers complete access to customer information that’s required for KYC. The API offers businesses access to all the KYC details, such as name, address, email, phone number and allows the choice to verify bank accounts, real time balance, and even up to 12-months of transaction history. Businesses can also get monthly bank statements in readable formats. Depending on the service you choose, such an API will cover all banks and credit unions, so regardless of where your customer has an account, you will be able to verify the same.

Final word

Think of digital KYC as a means to acquire more customers. It also reduces the work that’s otherwise required on behalf of staff and minimizes the overall possibilities of physical data theft. Of course, it requires consideration as how the API would be integrated in your system and the changes there on, but this is a plunge for the future, and you company needs to consider this.