Know Your Customer (KYC) or Customer Due Dilligence
Before taking on new customers, financial service organizations have to perform customer due diligence – identifying their customers, verifying their identity and understanding the risks involved, a process also known as Know Your Customer (KYC).
Especially in emerging markets, it can be difficult to perform compliance-ready KYC. Potential customers may lack a formal ID, or identity authentication can be complicated.
Losing customers because of ineffective KYC processes
At most banks, customer onboarding rates for new accounts average 20-30%. This means an abandonment rate of 70-80%!
This happens because banks traditionally rely on tedious manual KYC procedures that can drive away potential customers, who suffer process fatigue and drop out before completing their onboarding.
Expensive customer due diligence will reduce profits
In addition to being tedious, these manual processes are expensive. This makes low-income customers unprofitable, and limits the viable market segment.
Banks operating in developing economies then have a difficult choice: lose out on the underbanked low-income population, or service them but with very marginal profits.
E KYC software for successful customer onboarding
E-KYC is a process where approved entities query a digital ID system to verify customer identity.
A good eKYC software will optimize the onboarding process by eliminating paper procedures, reducing the time and cost of verification. E KYC software becomes effective when it accelerates account opening, facilitates mobile access, and makes it easier for customers to conduct transactions.
The best e KYC solution providers must also provide robust compliance controls, while keeping compliance costs down.
Our featured e-KYC software: Genie Selfie
Genie Selfie is an e KYC solution by digital banking transformation specialists Bank Genie.
The Genie Selfie e KYC software benefits end customers by:
– making onboarding easy: processes are simplified to only what is relevant
– improving speed: “scan and capture” solutions result in a 10-minute process
– leveraging existing devices: through customers’ own mobile phones Customers get a simple, secure, seamless onboarding experience.
The Genie Selfie e KYC software benefits banks by:
– reducing cost: digitalization reduces operational and process overheads
– process improvements: paperless, and time and geography agnostic
– increasing revenue: a centralized system allows easier, faster cross-selling
– decreasing loss of profits: by reducing new customer abandonment
– reducing customer churn: through improved customer satisfaction
Banks can provide a great customer experience, without compromising compliance and risk management.
Tired of expensive and ineffective manual KYC processes? Try out our e KYC software for your customer onboarding now.
Need more than eKYC software? Genie Selfie is only one vertical of Bank Genie’s cutting-edge digital banking platform, a software suite that enables banks to transform their legacy systems into future ready digital solutions.