Customer onboarding or Know Your Customer (KYC) is a process of customer identification and verification before undertaking any business or operations. It usually includes multiple layers to collect and process personal information, verify identity according to the KYC regulations. In Customer onboarding, finding a balance between superior customer experience, compliance and operational efficiency is critical, as it sets the tone for relationships with customers in the future.
Why is customer onboarding important?
There are many regulations applicable for the onboarding process, e.g., Anti-Money Laundering (AML), Counter Terrorist Financing (CTF), General Data Protection Regulation (GDPR) and other procedures from local regulators. Payment Service Providers must comply with these regulations and verify every customer. Fines, regulator restrictions to provide services and losing the license are the consequences that financial institutions may face if they don’t comply with international and local regulations.
How to improve customer onboarding
Banks and financial service providers continue to optimize customer onboarding that used to be known as an archaic and time-consuming process. With new financial technologies, companies can offer higher efficiency, transparency and more pleasant customer onboarding experience. Using online platforms for customer onboarding allows all types of financial institutions to remain competitive and grow globally. Customer-centric onboarding improves customer experience, speeds up the process, reduces costs and paperwork burden. In short, it means that anyone who has a smartphone or laptop with the Internet connection can perform the onboarding process with third-party service providers and even banks.
Biometric technologies and customer onboarding
Biometric data, including fingerprints and facial scan, can be used to verify the identity of potential customers in a fast and relatively easy manner. This digital process usually begins with the verification of an identity document and then proceeds to the authentication of a document holder using additional biometric information. Secure, real-time identity verification as part of the customer onboarding process is necessary for banks and other financial service providers to comply with Know Your Customer (KYC) and Anti-Money Laundering (AML) standards.
Advapay is a technology company providing the Digital Core Banking platform to empower fintech clients or digital banks to start their businesses and accelerate digital transformation. The platform delivers all essential functionalities, a front-to-back system and a set of tools to customise and bring new integrations. With Advapay, potential and existing customers can connect either to the cloud-based SaaS or on-premise software. Besides the technical infrastructure, the company provides business advisory and fintech licensing services. Interested to learn more, please drop us a message.
