Know your customer, or KYC, is the process in which organization identifies and verifies the identity of its customers or clients. Recently, after digital transactions gathered momentum around the world, especially in developing countries, it has become vitally important to ensure the KYC process for customers has been properly completed. As of now, KYC verification is done manually which leaves more than a few gaps in the process’s security. Also, maintaining records can take a lot of time and increase the workload on your employees.
When this process is automated, organizations get access to tools that help standardise data without added effort on part of employees. Verification is also automated if the organization has access to databases. All data that is recorded is available in real time, which helps speed up other processes that are dependent on the data from this process. For a process such as KYC, data security is essential as the information shared is personal in nature which can be misused. . Manual processes tend to fail in this regard. Below, we will discuss the benefits that automation can bring to this process.
1. Secure yet simple process
Usually, people confuse complexity with security. A process can be secure without being too complex. When we advise you to automate this process, we do not mean removing the human element. Rather, we intend to empower the human element with tools that help them achieve maximum efficiency with minimum effort. By replacing paper or digitized forms with automated ones, we remove the excess workload of manually organizing data. Also, once the form is filled, it is automatically shared with the relevant decision makers, who can then send it for verification or approve of verification. All these with the ease of single window access. Security is managed by hierarchical access protocols. The option to upload PDF or jpeg files of additional documents helps save time. Also, only the people directly involved with the process can access the data, making it completely secure. As we said, security is not a complex concept.
2. Standardised data in real time
For a process that produces a tonne of data as the end product, it is surprising that there is no provision to expedite standardising of this data. Since updation is dependent on manual effort, it makes data susceptible to errors. Also, it is impossible to fetch data is less than a day old, at least, as manual updation is time taking. When this process is automated, data captured from the forms is automatically standardized. This data is updated as soon as a change is made, and is available for review in real time. This is helpful when data from this process is needed for decision making in other related processes. Automating also saves on effort and resources involved in manually updating records.
KYC, as a business process, has gained importance recently as cashless economies are growing around the world. As such, not many organizations are equipped to properly handle this process. By bringing in automation, this process becomes significantly more efficient as well as secure. If you have any doubts regarding this process, or the automation of any other business process, you can contact us anytime. We will be happy to answer all your queries. If you want, you can also sign up for a free demo.
Published on May 28, 2018