Know Your Customer: How AI Helps Businesses Perform Virtual Customer Identity Verification in Seconds – Saving Time and Money
Skymind, the world’s leading AI ecosystem builder, recently announced its partnership with NEC Corporation, a leader in the integration of computer and network technologies. The union will help pave the way for faster and more efficient business procedures for identity verification. Shawn Tan, CEO of Skymind, explains what this means for the future of integrating customers into a world redefined by the digital economy.
Even before the pandemic, businesses have seen a drastic shift towards digitalization over the past decade. For banks and other financial firms in particular, traditional brick-and-mortar branches are giving way to growing consumerism and online service engagement, meaning customer onboarding procedures have had to adapt. Consequently.
Prior to the move to digitalization, Know Your Customer (KYC) procedures were mostly paper-based and required the customer’s physical presence along with their original identification. Products and services such as updating an insurance policy, applying for a new passport or opening a bank account were only available by face-to-face appointment and usually took weeks, while also being subject to manual delays and human error.
Thanks to AI and the global push for digital transformation, KYC processes are being revolutionized and can now be conducted electronically. This includes extracting digital data from the identifiers, using certified digital identities and facial recognition software for online identity verification. The New World of KYC is a remote, paperless process that minimizes compliance costs, reduces approval times, and limits the bureaucracy associated with traditional manual KYC.
The rise of electronic verification comes at a time when financial institutions face heightened security risks, with issues of corruption, terrorist financing and money laundering becoming more prevalent in the digital age. . As such, KYC policies have become an important tool in tackling international financial crimes – and the way they are carried out is the primary method of stopping harmful activities before they even begin.
Our current focus on AI-powered electronic KYC is what makes our partnership with NEC so intriguing – and one that can help businesses onboard new customers safely, with minimal errors, and much faster – by removing humans from the loop so they don’t. have to check documents and slow things down.
The identity verification platform we created uses artificial intelligence and machine learning to optimize KYC, reducing identification and verification processes from two weeks to less than three minutes. It provides a superior and frictionless user experience and improves customer onboarding rates. In addition, the technology also guarantees a higher level of safety and reliability.
Skymind’s partnership with NEC allows us to continue collaboration on NEC’s SX-Aurora TSUBASA / Vector Engine technology, which will further accelerate the KYC process – up to 10 times – by speeding up big data transfers and workloads. learning work.
Now is the right time to harness this kind of technology – with the coronavirus pandemic accelerating demand for online self-service models, the focus will remain on fast approval times and minimal disruption that still respects the fight. against money laundering (AML) and other regulatory requirements. The KYC platform provides remote identity verification and management services for banks, telecommunications companies, insurance companies, and many other businesses.
Since the 2008 financial crisis, banks and financial institutions have faced an increase in the number of regulations with which they must comply, and when they violate these, they face significant fines and the possibility of being violated. completely lose their operating license. Between 2008 and 2018, financial regulators issued $ 23.52 billion in KYC and AML fines alone.
And according to research by Fenergo, on-boarding times increased by an average of three weeks in 2019, which they say could lead to lost revenue of up to $ 4.5 billion as customers drop out. slow integration and seek other institutions.
Today’s customers are digital savvy; they expect a smooth experience, instant access to their accounts and profiles, and are quick to look elsewhere if a financial institution doesn’t meet their needs or expectations. On the other hand, banks find it difficult to juggle how to collect the necessary information without overburdening customers. The goal is to collect data and integrate it seamlessly into the onboarding process, while ensuring full regulatory compliance.
Our collaboration with NEC and its Vector Engine can benefit this entire process, and in turn, small and medium businesses. With an optimized digital experience, the customer journey becomes fluid and autonomous: customers can navigate the process at their own pace, and with little or no human intervention.
And while identity forgery, signatures and phishing can be extremely common, the partnership between the two companies has allowed the development of a completely secure process, with zero margins for counterfeit and related crimes.
So, with AI-powered digital integration and deep learning, transformational technologies can pave the way for the evolution of KYC through multiple touchpoints of the onboarding process, in what is an industry. rapidly developing multibillion dollar.
The benefits of businesses – from SMBs to large corporations – are the ability to attract the right customers, with minimal hassle, financial costs or risk, with just a few clicks from a computer or mobile device.
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