There were over 864,000 reports of identity theft in the US in 2022. This worrying figure highlights the challenges faced by companies that handle customer data. One way of mitigating this threat is to have a robust Know Your Customer (KYC) policy.
But how can you overcome the challenges of implementing a KYC policy? This is a critical part of your business, and making errors could have costly consequences for both your company and your customers. While this is a constantly evolving area, there are several steps you can take to make your KYC processes run as smoothly as possible.
Keep reading to learn more.
Streamline Your Onboarding Process
There are rightly strict legal compliance requirements when it comes to verifying a customer’s identity, but this doesn’t mean your onboarding procedures have to be unwieldy. You can use modern technology to simplify how you collect and review client information.
For example, you could use software that allows customers to upload documents to confirm proof of identity. This information should then follow a straightforward workflow. It can move through your systems with the data being confirmed either by a machine or a human employee.
Avoid False Positives
False positives can damage trust in your business. They can also cost your company money by providing you with incorrect information which affects the accuracy of your decision-making.
This is why it’s vital to use superior systems for checks such as the verification of phone numbers. You can then quickly identify which phone numbers match the personal information you have for customers such as their name and date of birth.
Having this level of reliability in your data can be invaluable to your business.
Unify Your Data Sets
If you hold customer information on different computer systems or in different departments, data may not be shared. This could result in customer details being verified by one department, and queried by another. But, if you collate your data, you can avoid this issue.
Ensure your IT systems are set up to connect and pass on information in real time.
Focus on the Customer Experience
When creating a KYC strategy, it can be easy to focus only on what information is required by your business. However, you should ensure your customers are not unduly troubled by the verification process. Think about what steps you are implementing, and remove any tasks that are unnecessary.
You should also explain to customers why you need certain information and how it will be stored. This can help clients to understand why they need to provide their personal information.
Implement Your KYC Policy With Ease
While it can be challenging to develop a thorough KYC policy, you can make the process easier by using innovative technology to verify a customer’s identity. It’s also important to share client data within your company, and to provide your customers with a hassle-free experience.
This can give you peace of mind your KYC procedures can protect your customers and your business.
If you’ve found this KYC implementation post helpful, check out more of our informative blog articles.
