Customer onboarding is becoming increasingly complex. Organisations must spend more and more time and resources on the manual handling of all required information. This raises questions about how to implement the mandatory KYC process accurately and efficiently without increasing the workload or hiring additional staff. The solution is simple: automated KYC checks. In this blog post, you will learn how this works.
A delayed process should be worrisome
Do you find KYC obligations burdensome for your organisation? Whether you're an analyst or a decision-maker, you will likely notice that the process can be time-consuming and tedious.
A typical KYC policy is an outdated and slow process where information is manually collected and processed. As more and more rules are added to KYC regulations, delays in customer onboarding are also increasing. This trend should be concerning. McKinsey research has shown that B2B decision-makers see "a lack of speed" as the most limiting aspect of the customer experience, mentioned twice as often as price. Companies expect a seamless and user-friendly customer experience, just like they do in the B2C market.
More, more, more
This leads organisations to lose potential new clients already during the registration process. Additionally, labour-intensive processes result in higher costs, more errors, duplicate work, and thus lost revenue. Efficiency in customer acceptance is crucial.
Many organisations see increasing the number of analysts as the only solution to tackle these problems. Customer acceptance is, after all, an indispensable part of business operations. You will have to meet the growing KYC requirements anyway. The demand for compliance specialists has exploded in recent years, leading to significant extra costs and missed opportunities. Growth opportunities are not fully utilised because time and resources are primarily spent on compliance obligations rather than investments in the future. Then there are also the costs of lost deals. Clients will switch to competitors due to slow onboarding, even though your analysts have already spent time on the onboarding process.
Go with digital opportunities
Adding more resources is not the only solution. You are probably familiar with the saying: work smarter, not harder. In customer acceptance, you have the opportunity to apply this approach effectively. By automating your KYC process, you work faster and more accurately. Why increase the workload or hire more staff if you can use one system to perform advanced checks in just a few clicks?
Automating your KYC process offers only advantages:
- Better customer experience
- Faster onboarding
- Improved work processes
- More time for risk cases
- Consistent compliance checks
For each step in the process (customer identification, background checks, risk analysis, and continuous monitoring), digital solutions exist. They save you costs, eliminate paper-based processes, and improve the customer experience.
If you choose an automated KYC process, most routine tasks will be handled digitally. The final judgment is left to the analyst, who will have more time to investigate genuine dubious cases . It is expected that automated processes will significantly increase over the next two years. Many entrepreneurs adopt a wait-and-see attitude. But if you want to stay ahead of your competitors, you can't afford not to go with the flow and digitise as many processes as possible.
Advanced solutions for complex controls
Optimal customer acceptance and due diligence processes require expertise and accurate information. It's a combination of risk analysis, market exploration, and combining gathered information with historical and real-time business data.
GraydonCreditsafe offers you advanced solutions to automate your customer onboarding. Use them to improve the thoroughness of your (mandatory) compliance processes, giving you more time to handle genuine cases of doubt.
Curious about what GraydonCreditsafe can do for you in this area? Check out our KYC Protect solution and book a live demo with one of our specialists.