As customers increasingly prefer to do their banking via smart devices, it’s time for banks to modernize their approach to customer due diligence. Financial crimes compliance expert Sujata Dasgupta provides a deep dive on smart ID&V solutions for KYC compliance.
Know your customer (KYC) forms one of the strongest pillars of financial crimes compliance, from customer identification and acceptance to monitoring customers’ transactions against their recorded profile, expected behavior and peer group behavior.
So, understandably, detailed due diligence of a prospect for onboarding him as customer becomes the starting point of banking compliance. By preventing bad actors from entering the financial system, the first step of preventing-detecting-reporting a financial crime is accomplished!
KYC is now an integral function of compliance in all financial institutions, with customer data and profiles forming extremely important components in this function. Banks have been aggressively driving sophistication in KYC to strengthen their means of eliciting, storing, maintaining and enriching customer data for effective compliance.
Current KYC Landscape and Industry Challenges
Over the last couple of decades, KYC has undergone quite a metamorphosis in terms of regulations, processes, systems and technologies, as well as…
