Anil Aggarwal, CEO of Fintech Meetup joined Sunil Madhu, Founder & CEO of Instnt on the first episode of a 4-episode series hosted by Georgie Frost, discussing digital transformation that will be ongoing now that the pandemic is receding.
AI and automation can be used for the onboarding process, including KYC and Anti-Money Laundering (AML). Not only does AI essentially automate compliance, but it can also address customers’ impatience with having to wait or jump through hoops while signing up for a new financial service. If the user journey is not customer-friendly and is causing delays, new customers will leave.
The customer experience improves, but the business can actually grow faster, because more clients are quickly signing up.
Unfortunately, fraud is the new normal. To address and combat fraud, financial services firms buy a range of tools for KYC, AML, and other compliance measures, but it’s an imperfect process at best.
Instead, firms should consider a shared services model, leaving the onboarding process to a provider with access to wide amounts of aggregated data. In this way, the stack can be minimized and firms wouldn’t need to manage a range of vendors that only provide one component, such as phone number verification.
There will soon be an institutionalized way of doing things. Regulators, legislators, and industry bellwethers might have a wait-and-see approach, but managed customer onboarding will soon be the industry norm.