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KYC Automation: The Key to Transforming the Client Onboarding Process

When it comes to the client onboarding process, financial institutions want to make sure that they are doing everything possible to streamline and automate the process. After all, the quicker you can get new clients up and running, the more business you will be able to do with them. One way to improve your client onboarding process is through KYC automation.

In this article, we will discuss how an effective yet simple KYC process⁠—and one that’s fully automated⁠—can help improve your client onboarding process. 

Before anything else, what is KYC Automation?

KYC automation is the process of automating the Know Your Customer (KYC) checks that financial institutions are required to perform on new clients. By automating these checks, you can speed up the onboarding process and get new clients up and running more quickly. There are a number of different ways to automate KYC checks. These include:

Performing automated checks on new clients

One of the simplest ways to automate KYC checks is to perform them automatically when a new client signs up with your institution. This can be done by using data from public sources, such as social media profiles and government ID databases.

When a new client signs up, you can use their information to automatically check for any negative news articles or criminal records. This will help you to quickly identify any red flags that might indicate that the client is not who they say they are.

You can also use this information to verify the accuracy of the information that the client has provided to you. This includes things like their name, address and date of birth. By verifying this information upfront, you can avoid any delays later on in the process.

Automating document checks

Another way to automate KYC checks is to automate the document check process. This can be done by using optical character recognition (OCR) technology to read and verify documents automatically.

This is particularly useful for things like identity documents, which often need to be scanned and uploaded as part of the onboarding process. By using OCR, you can quickly and accurately verify the information on these documents without needing to manually review them.

Automating compliance checks

In addition to automating KYC checks, you can also use automation to streamline your compliance checks. This includes things like anti-money laundering (AML) checks and sanctions checks.

AML checks can be performed automatically by using data from public sources. This will help you quickly identify any clients that might be at risk of money laundering.

Sanctions checks can also be automated by using data from public sources, such as the OFAC list. This will help you quickly identify any clients that are on a sanctions list and need to be screened manually.

Automating client reviews

Finally, you can also use automation to streamline your client review process. This includes things like sending automatic reminders when a review is due and generating reports automatically.

By automating your client reviews, you can make sure that they are being done regularly and that any problems are identified and dealt with quickly. This will help to improve the overall quality of your client onboarding process.

Implementing KYC automation

As you can see, there are a number of different ways to automate your KYC checks. By automating these checks, you can speed up the onboarding process and get new clients up and running more quickly. Be sure to get the right KYC automation solution for a more efficient onboarding process.

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