The previous year was all about bearing the COVID-19, but it has further kickstarted a distinct flow of advancement. As we progress toward the new year, there is an influx of companies transforming to the online space to bear through market competition. Yet smart payment solutions which enable performing payments on a phone have shifted to traditional information. 2021 has come with a heightened urge for digital-only software to substitute the current banking system and financial measures which are in use for quite some time.
The monetary sector was swift in using present enhancements in technology. Financial technology businesses are now entrusted associates of higher than 70% of the monetary institutions out there in the business. Financial technology involves KYC measures that are vital for any company entity to comply with AML laws.
What are KYC & AML Laws?
Know Your Customer and Anti-money Laundering is a set of legal claims to authenticate the true identity of a companies’ customers. It carries into the record official evidence of identity such as an ID document, to evaluate client credibility, and the risk included in onboarding, to reduce possible cyberattacks.
Present Landmark of financial technology and Know Your Customer
The fintech industry has grown with the latest technologies driving innovation. Potential circumstances of cybercrime can now be reduced by software powered by AI. Regulatory bodies, online companies, and service providers of fintech ensure the greatest part of the market.
The financial technology market is inclined to a bunch of modifications. This is why, continuously evolving nature, enables companies to authenticate users with a guarantee. The conventional know your customer measures, which were once opted by companies to authenticate user identity with identity verification, have now enabled their path in the digital landscape. Know Your Customer authentication is now done in real-time over the internet, although where a person is present. Since Know Your Customer is a compulsory requirement for monetary institutions to reduce scams and money laundering, financial technology solutions answer the problem in presence of regulations.
Lack of KYC & AML Infrastructure
Since monetary institutions include a lot of financial activities in daily operations, they must perform proper Know Your Customer and Anti Money Laundering checks. Criminals associate relations with companies to clean illegitimate funds through their websites and conduct a range of cyberattacks. Know Your Customer & Anti Money Laundering laws are a great chance when it comes to reducing the illegitimate flow of cash. Regulations have been enforcing immeasurable fines to monetary institutions that fail to comply with KYC & AML compliance in the present years.
Financial and technology role in user onboarding
Presently, with enhancements in technology, associating connections with users and other companies has become safe and seamless. Those times are gone when manual verification was compulsory to perform a user onboarding procedure.
The significance of AI in the financial and technology industry
Monetary institutions and financial technology companies are moving towards artificial-intelligence-powered solutions to accelerate their user onboarding processes. In this coronavirus pandemic, monetary institutions are banking on the latest and enhanced technology to increase their sales. With the power of machine learning and artificial intelligence, financial technology can monitor fraudulent activities, and effortlessly do business with the latest prospect at the same time through digital Know Your Customer.
Consent Verification Security
Fintech has encountered an increase in demand over the past few years. This demands for technological advancements that allow Know Your Customer to enhance authorization of users and takedown identity scams. In the present year, financial technology companies are using biometric verification technology like liveness technology and consent verification as a reliable and authentic way of complying with Know Your Customer standards.
The development of financial technology has allowed government bodies to develop regulations for enhanced compliance. To better employ anti-money laundering, RegTech has become vital for digital companies and financial technology is no exemption. Undoubtedly, advancement brings innovation, but it develops a new avenue for fraud as well.
An effective Know Your Customer authentication procedure is the demand of each financial technology company in the sector. In order to comply with the continuously changing regulation requirements, Fintech companies need a solution that can assist them to comply with Know Your Customer and Anti Money Laundering obligatory in the best possible way. It offers digital Know Your Customer authentication to onboard users by authenticating their true identity, in presence of global Anti Money Laundering compliance.