Businesses consider KYC as an obligation that needs to be fulfilled, all credit to stringent global AML/KYC regulations. But what if I could tell you, that business could benefit from KYC not just in terms of KYC compliance and regulatory fulfilments but also in terms of customers. Don’t believe me yet?
It’s about perception really. If you consider a task as a burden, it will always be a burden. If I change that perception, however, things seem different. If the achievement of those tasks makes me capable of something greater, it’s not really a bad thing. In a highly contested world, anything not bad can be used as a competitive advantage. Consider the example of KYC, can the information collected be used for better customers management, highly probable. Let’s not give up on KYC verification just yet and see what can it give us indirectly!
Due Diligence Information for additional Use
Any standard process of KYC does not immediately begin with identity verification, composing of facial verification and document verification. A complete KYC or Know Your Measure application consists of additional segregation of diligence, that is applicable to customers against pre-determined risk classifications. These diligence categories consist of Customer Due Diligence, Simplified Due Diligence, and Enhanced Due Diligence. With each classification of diligence, comes additional information about the customer besides identity verification. This includes information about a customer’s origination point, business type, relationship-profile, customer persona, wealth information, risks in reference to geography and jurisdictions
Making Use of Additional Information In the Sale Funnel
Having substantial information about the customer, other than the available PII information about the customer. Like jurisdictional information, PEP status, information such as that allows businesses to decide the likelihood a customer would stick considering their risk profile and how much business can they expect with a potential prospect with their respective risk profile. Considering businesses have to perceive customers from a risk perspective and keep themselves secure in the process.
Also, information elements like business type, relationship-profile, customer persona, wealth information help businesses to establish the suitability of future customers, based on their pre-established customer persona. From this information, businesses can determine the ‘idealness’ of future prospects, if they are channeled into the sales funnel and nurtured accordingly.
The processing of all this data into strategic information is the key here and ideally placing that information in places that best fulfill and amplify the sales process is mandatory. Businesses will have access to information that they earlier never thought of having, which they had all long in the sense of raw data. All that is needed is for businesses to be vigilant and assess what information they currently retain, cross reference it with their ideal customer personas and utilize that information in marketing and sales funneling. Helping businesses to address customers with targeted information and tactics.
Protection against fraudsters
More often then businesses would like, customers use forged or stolen information to register with digital businesses and online services. This information is acquired by these scammers either by hacking the individual information of a naive user or by buying genuine personal information over the dark web that was actually stolen during a data breach.
There are innovative identity verification and data protection solutions available that can protect businesses from bringing onboard clients that are going to use stolen credentials for creating an account. Either if it is consent of a user for a financial transaction or the virtual permission to process a payment from a displayed credit card, online businesses can now collect verified consent of their user to safeguard themselves against cashback requests.
Account takeover is also at an all-time high with previous year stats declaring that nearly one-third of the online frauds were committed with the help of stealing log-in information of accounts held by genuine users. Identity verification and KYC authentication process can ensure that with the help of biometric verification and document verification online services can protect themselves against false account takeovers.
KYC should be looked holistically and not through a reductionist approach. Where all change requires time and patience to absorb. The potential long-term benefits outweigh the present hurdles faced by business in KYC compliance implementations. Most of the online businesses can have frictionless user experience for their incoming clients while at the same time collecting verified personal information. There are several KYC service providers that offer identity verification solutions to smoothly authenticate the true identity of the incoming customers but there is none better than Shufti Pro. There are several reasons why Shufti Pro stands out among the crowd of ID verification services. It is available in over 230 countries and supports 150 languages of the world. So unlike, its competitors that are beneficial in limited geographical regions, Shufti Pro is a global KYC solution that can help businesses to generate revenue from an authentic clientele.