A lot is riding on your onboarding process. Make it too easy, and fraudsters ring you up. Too challenging, and your customers seek other companies with fewer requirements.
In the financial industry, regulations are a part of doing business, and most are designed to protect both consumers and businesses. But they can also impact a business’s bottom line and can themselves be costly if ignored or followed carelessly.
KYC (Know Your Customer) standards and regulations help financial institutions minimize risk and protect against money laundering, legal problems, and reputation issues.
Let’s talk more about KYC, specifically why it’s important today and how you can best prepare for increased regulations as part of your overall onboarding strategy.
Fintech is a booming industry, rising with vast advancements in technology as well as the changing landscape of human preference. Regulations have risen alongside this boom, adapting to the new way financial crimes are occurring.
One such group of regulations with heavy impact to many companies in the fintech and financial industry is KYC regulations.
KYC regulations ensure fintech and financial institutions have accurate, detailed information about their customers and can verify their identities. It is a crucial element in the fintech industry’s goal of stopping financial crimes, such as money laundering.
Ultimately, KYC compliance answers the following questions about customers:
KYC compliance is vital for fintech companies and all financial institutions, guiding your strategies and processes towards strict, error-free operations. It ensures you protect your company from potential consequences, such as the following:
KYC implementation occurs when onboarding new customers, so modernizing your onboarding processes can help you meet KYC regulations, prevent fraud, and improve the overall customer experience.
Identity verification is the key element that will help you prepare and adhere to KYC standards in your industry and country/region, which can also help defend against synthetic identity fraud.
You’ll want to implement solutions that keep your customers safe while getting them through the onboarding phase with as little friction as possible.
Telesign plays a part of the KYC process. After you’ve done your due diligence in verifying items such as a driver’s license, proof of address, social security, etc., verifying a phone number can supplement and strengthen your KYC process. Telesign takes the guesswork out of KYC compliance, keeping your business free from fraud and fines. Telesign helps by:
Because KYC compliance begins at onboarding, Telesign is committed to helping you deliver optimized onboarding experiences to build trust with your consumers by keeping them safe.
Telesign helps you challenge risky users during onboarding and fast-track legitimate ones. We create scalable, frictionless onboarding experiences that allow you to focus on authenticating effectively.
To see how Telesign helps companies stay on top of KYC compliance, chat with us today.