The Impact of AI on the KYC Compliance Industry

The importance of artificial intelligence cannot be ignored in the modern day KYC - Know Your Customer process. As technology has grown by leaps and bounds so have the processes relating to KYC, in specific Identity Verification. Multiple factors like fraud and regulatory pressure have called for the improvement in traditional KYC processes to better address fraud. Also, the need to establish airtight measures to paint a more clear picture of the customer is becoming a regulatory norm. Incorporating the best technology available, the answer was AI-poweredKYC compliance.

The usage of AI for compliance purposes has greatly impacted how KYC is practiced today and the results produced. Potentially opening a new way for digital businesses and financial services to fulfill their compliance obligations. Had AI-powered KYC compliance not see light, it would have been a very different business and compliance environment. Let’s see how AI continues to impact the KYC industry:

Redefining what real-time is

KYC solutions running on an AI background re-purposed the meaning of real-time. Where speed was measured across in days and weeks before. The processing of KYC information within a minute was considered near to real-time in comparison. 

Business profile and due diligence

KYC is a lot about customers, and a lot about a customer is their profile or persona. In respect to diligence, KYC measures are applied based on the outward profile of the business or customer. Basically, due diligence measures are applied according to the categorized risk-profile of the customer or businesses.  

Anti-money laundering  screening

Without AI-powered KYC compliance, the capacity to screen individuals across multiple lists would not be possible. The AI allows integration to these databases either directly or through the help of an API. The quick processing through thousands of domestic and global lists of PEPs, exposed personal and compromised individuals is made possible by AI-powered solutions.     

Client Experience

AI allows an ideal balance of seamless customer experience while mitigating risk through a modern UI facet. Where this digital solution establishes a fluid customer journey throughout the verification process with minimal customer inconvenience. 

Accuracy and Consistency

AI operates on specific and consistent protocols, functions that are standard across all with the notable exceptions. However, the majority of the verification's undergo the same parameters of scrutiny. This ensures results are consistent across the bulk of the verification's. Also, most verification are performed in less than a minute(standard practice), thus more customers are on-boarded, allowing more individuals to be processed and the backlog to be reduced.

Document Management

A neat advantage AI has is its ability to process and utilize machine learning to process global documents. KYC providers need to verify documents from users around the world. As global identity document are used, the AI is able to services KYC requests for document verification by utilizing stored templates as a reference for pro grammatical comparisons. 

The impact of AI on the KYC industry is evident and clearly outmatches any predecessor KYC practices. Many digital businesses are able to perform real-time ID verification because of AI-enabled KYC solutions that cater to not only varying industry requirements but also global regulations. AI-powered KYC compliance is what global businesses should be seeking to implement and accept as their partner in compliance.