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The financial services (FS) sector has the highest ever recorded abandonment rate of 83.6% amongst other sectors. This indicates the need for FS firms to transform their processes and systems. Market leaders in the industry have managed to set certain standards for onboarding procedures. For others, it is necessary to transform their systems and processes in order to stay in the race. Customers nowadays look for faster, more convenient yet safer services. One of the best ways to achieve such milestones is to integrate modern technology in banking procedures. An identity verification API is an all in one system that can improve, compliance as well as onboarding procedures for FS companies.
Another concern for financial institutions is regulations and compliance. In the past couple of years, regulatory bodies have been overactive in curbing money laundering activities. That, in turn, has resulted in increased scrutiny for banking institutions. Online identity verification systems cannot only fulfil compliance requirements for FS firms but can also transform their onboarding processes. Some of the ways in which an identity verification app can transform financial services are;
Easing Customer Onboarding with Identity Verification API
Client onboarding procedures can be extremely drawn out for banks and financial institutions. With automated identity verification solutions, banks can
- Optimise onboarding with a faster due diligence process.
- Enhance the process of CDD and EDD, allowing them to assess the risk associated with each customer.
- Make onboarding faster but also increase the rate at which banks can take on new clients.
- Increase convenience for customers, thereby increasing customer satisfaction levels.
How Identity Verification API Enhances Security in Financial Services
Not only can a KYC API facilitate customer onboarding, but can also enhance security for banks. Digital KYC procedures can help them identify and verify individuals within seconds. This largely reduces the risk of identity theft and credit card fraud. Proper AML screening can help banks avoid getting involved in money laundering activities. Moreover, it can also enable them to meet their compliance requirements more effectively.
Making Compliance Procedures Simpler
As global financial regulations become more stringent, compliance becomes a complicated process. Long drawn out compliance processes tend to frustrate clients. FS firms need to implement a tech solution that can not only meet compliance regulations effectively but make convenience and speed a priority in customer onboarding. An identity verification API can effectively address both issues and ease both compliance and onboarding for banks.
In a fast-paced and competitive environment, the biggest challenge for FS institutions is to simultaneously approach the need for trust and compliance along with convenience and speed. Approaching both milestones can be tricky. However, with intelligent user experience (UX) choices and advanced technology, both parameters can be addressed adequately. An identity verification API solution can enhance compliance as well as onboarding for FS firms.