Challenges with KYC In Banking

Challenges with KYC In Banking

KYC or Know Your Customer has been mandated in the banking and financial industry for more than twenty years. It was implemented to avoid fraudulent opening and access to accounts, which was essential in the larger overarching Anti-Money Laundering or AML compliance requirements implement around the world.

In the last few years, and despite the evolution of the technology, customers are increasingly concerned about the quality and the type of policies governing KYC in banking. Many of these concerns revolve around the potential for this type of security feature to make banking more difficult.

Privacy Concerns

For bank and financial customers around the world, privacy is a concern. Older technology used in KYC in banking may have created potential security risks for customers, or at the very least create ambiguity with regards to how the data was being used.

Upgrading agreements on data use with customers and specifying how data is collected and used continues to be an ongoing challenge. While this is not a factor of the technology, the more complicated and challenging the KYC policy is for customers, the more they hesitate to use the technology.

On and Offline Processes

New systems and services offering solutions in KYC in banking provide both online and offline matching of the image provided by the customer to the image stored on the financial institution’s database.

Upgrading to new systems that provide this verification in real-time decreases customer frustration in the need to provide data in multiple locations. This is a benefit to any financial institution, with full integration throughout software systems to prevent errors and oversights.

Accura Scan provides highly effective, user-friendly options in KYC in banking software. To find out more, see us online at accurascan.com.

Alina alford

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The Need for AML Verification Compliance

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