Verifying the customer identity sounds like a simple task, but despite the simplicity, Know Your Customer (KYC) compliance has become a complicated, time-consuming, confusing, & costly process for many financial institutions. Introducing the AI in KYC can take the FIs business to the next level.
Whenever we talk about the KYC process usually, banks and financial institutions come into mind. However, KYC has broad aspects which we can't even imagine. Most of the banks and FIs have been adopted the KYC process to verify the identity of their customers. But what is KYC exactly?
KYC, or Know Your Customer, is done to identify the customer's identity. Of course, it is not an easy task for the organization as it evolves regulations, cost pressure, legacy systems, & more regulatory scrutiny. To perform the KYC properly, there is a need for special software solutions that will make the process of various organizations easy.
Due to the long and complicated KYC process, the customer experience & business growth are suffering. But with the introduction of smart systems within the financial industries helps to undertake the KYC process with ease. Artificial intelligence (AI) & automation technologies are becoming high-end options for resolving the troubles of modern-day banks and FIs. The regulators are encouraging the adoption of the latest innovative solutions in order to modernize the system. The biggest benefit of adopting AI technology is its game-changing contribution to the ongoing battle against financial crimes.
AI can play a crucial role in the KYC process. It helps to streamline the regulation and compliance process, eliminate financial frauds, solve errors, & automate various tasks. Thus, reduce the time & cost involved in the KYC process.
Role of AI in the KYC Process
Image Processing with AI
It helps to perform real-time scanning of proof documents & enhance the automated decision-making process.
AI Enables Pattern Recognition & Cognitive Engine
AI technology brings a lot of advancement in the FI systems. It helps to perform real-time discrepancy checks for uploaded documents & provide the near-instantaneous output.
Link Analysis using the AI Analytical Models
AI analytical models are used to analyze different types of objects & transactions and exploring associations & relationships between them; would make the KYC process efficient and fast.
AI-based Customer Behavior Prediction
Collecting data from a chatbot, like if you are performing behavior analysis on that data, may help identify the customer's potential risks. Thus, help you to make the right decision accordingly.
Optical Character Recognition
By using the intelligent data extraction engine & performing auto-filling of KYC documents offers an improved & quick customer onboarding.
KYC is all about verifying the customer's real identity. If you want to improve your KYC using AI, it will make the process smooth. Artificial intelligence is rapidly approaching most of the FIs and banking organizations. KYC challenges can be easily fixed by joining hands with AI technology. Make your system smart and identify various forms of financial crimes. Thus, attract new customers by making a user-friendly onboarding experience.
