In this digital, modern world, digital transactions are conducted, and massive amounts of data are generated every day. As such, you need KYC or Know Your Customer verification to protect against cyber thieves, hackers, and scammers. With so many fraudsters beefing up their scams with sophisticated tech, KYC vendors are also rushing to respond with their safety solutions. Finding the perfect KYC provider who can help secure your business and shield your clients against these cybercriminals is paramount. A KYC vendor that can provide a seamless service will also bring you more clients and increase your company’s bottom line.
But with so many KYC providers around, how do you know which one to pick for your organization? Keep in mind that KYC vendors are not equal. Some companies provide better coverage while giving you a better manual/automated review ratio. To help ensure you find the right provider to collaborate with, you must do your homework and look at the details. Take a look at the following elements as they can help you make the right decision:
Check the Security
This is the primary consideration when finding a provider. Security must be top-notch! Find out what services they can provide for your company. Check if they can serve your needs and specifications. You may want to pick individual components like a simple ID verification. You could also prefer a more comprehensive end-to-end solution covering all aspects of KYC, AML, and anti-fraud. The primary objective is to work with a provider that can offer features and functionality that will mesh well with your operations.
Find Out What Technology is Used
Ask the KYC provider regarding their technology, ML, AI, biometrics, and the like. You must evaluate the vendor’s capabilities by doing an actual test on client data. Verify by sending legitimate IDs and fake ones that are older, expired, or a different design. See if they can indeed filter the wrong ones. You must also remember to test the speed of manual reviews along with the audit results. The speed matters a lot, especially in this day and age of reduced attention spans. You don’t want to keep your clients waiting.
Assess For Easy Integration
When it comes to financial technology, you want ease of use for the API (application programming interface). Work with KYC providers that offer hassle-free and easy to use back-end and front-end integration. This means you will reduce your time, effort, and cost when integrating into this new platform. They should offer onboarding to help facilitate integration. How do they make this process easy for you and your team while ensuring the compliance requirements? Investigate if the KYC vendor can provide a good balance of these elements.
Check the Reference Data Connectivity
It will help if you ascertain that your prospective KYC vendor has a database of their own. It is typical for big companies to offer their database while giving you an option to integrate with other resources should your organization need it. Examples of this are partnering with government databases or customer-specific lists of data.
KYC will help in boosting the authority and credibility of your business. It will ensure all your transactions are transparent. At the same time, it will prevent hackers from infiltrating your system, minimizing their malicious plans and intentions. KYC is also the perfect ally to fight criminal activities like money laundering. With this system in place, you can protect your business investments and clients while assuring your financial partners that you are a competent organization.