Checklist to find the best KYC service provider in 2020

KYC (Know Your Customer) is one of the primary regulatory obligations for banks/businesses. Some sort of customer due diligence regulations are implemented on banks and businesses around the globe. Domestic and global authorities (FATF, etc.) are in the continuous process to reduce crime around the globe by implementing more KYC/AML laws on the reporting entities and performing strict scrutiny on them. This has led most of the businesses to perform KYC screening on their customers.

Most of the businesses are compliant with KYC regulations and outsource identity screening solutions. But how to choose a suitable KYC screening service provider. Have a look at the following checklist to find the best KYC solution for your company.

1. Scope of the services

The world has evolved into a global image and online businesses are gaining traction. Everything is available online yet RegTech (Regtech) and FinTech (Financial technology) came into being.

Most of the online businesses are targeting global clientele, this aids them to unleash international growth opportunities. Hence in this case when the compliance officer is unable to verify the identity documents from different countries, the need for a global KYC screening solution rises.

Global coverage will provide stronger risk cover and improves overall security standards of business. So choose an identity screening solution that offers global coverage in its services.

2, Choose the solution that matches your technical resources

Technical resources are prime assets of businesses these days, but not every business has enough resources to integrate these hi-tech KYC solutions. Keep this in mind while choosing the KYC solution. Not every solution in the industry would go well with your website, web-portal or App, so choose well. In this case if a company offers technical support it will be better. Also, the seamless and fastest integration solution is the one you need. A company offering easy API integration along with technical support is the one you need.

3. Customer experience

Not every company has great customer support, and they take days to reply to customer emails.

Choose a company that offers good customer support as you need their support team to guide you during the integration process and after that as well.

The ultimate concern is the experience of end-users (your customers).

So the interface provided by the service provider must be user-friendly and easy to use for the customers. Go through the whole verification process with the perspective of the end-user. Also, the solution must be fast in delivering the results, you can’t afford to lose customers due to the long verification process.

4. Accuracy in results

The best KYC screening solution is the one that delivers swift results in real-time and that too within seconds. A good KYC solution that uses artificial intelligence can deliver results within seconds, so choose the best and don’t settle for less.

5. Look for an all-rounder

Most of the businesses that come under obligations of KYC laws are also obliged to perform AML (Anti Money Laundering) on their businesses. So choose a solution that offers KYC and AML screening in one integration. Choosing separate solutions for different verification needs is hefty and expensive.

Also, look for other services in one solution such as biometric authentication, geolocation verification, etc. In case your compliance obligations or risk prevention needs an increase in the future, it’ll be easy to extend the services.

6. Data protection

Customer data is crucial so be careful while choosing a solution for verification of this data.

Check if the service provider is compliant with some sort of data protection law, such as GDPR. Choose the one that has necessary certifications.

To wrap up, choosing an outsourced solution for customer verification is a very important task and needs to be done after a detailed analysis of the market. So follow the above checklist to find the best KYC screening services provider.

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Source: Gabriel Luke