Go With Seamless Customer Onboarding Process Using AI Based KYC And AML Solutions

10 Aug 2022

Artificial intelligence and machine learning have become common and vital in the banking sector. Banks increasingly rely on several digital methods to get their routine work done. AI and ML are, therefore, gaining a fourfold significance in safeguarding the banking procedures and authenticating the customers. Many large-scale banking firms have been using AI-based KYC and AML solutions for customer onboarding.

This blog shall discuss how KYC solutions and AML screening can help in the process.

How Can AI-based KYC And AML Enhance Customer Onboarding?

Recognize And Understand Customer Behavior

AML verification and KYC implementation during customer onboarding imply that only proof of identity is not enough to authenticate any customer. Current policies require modern technology for proper implementation and effective results.

There is a need for intelligent segmentation throughout the AML lifecycle to take customer onboarding and authentication to the next level. It can be done by using data to monitor customer behavior. By analyzing customer behavior, bad apples can be identified and sorted out.

Fraud Detection

Using online banking services is deemed quite safe. However, it does not mean that there is zero risk of fraud. The risks that may arise can be countered by using biometrics with AML approval. Combined, AML screening and AI-based KYC help the firms identify potential frauds using identity proof and the track record of the user.

For the security of advanced online activities, there is a need for an advanced security model. The manageable API can be used to make different procedures such as logging in, booking, and third-party payments more secure. Various API protocols give AI more creative capabilities and implementation, allowing more online protection and freedom to institutions and customers.

Using Biometrics Identity Verification For UBO

The Ultimate Beneficial Owner (UBO) is the real person who ultimately owns, controls, and gets the benefits of a transaction performed by an institution. The EU's AMLD4 defines UBO as any person:

With at least a 25% stake in the capital of a company.
With at least 25% voting rights in the general assembly.
Beneficiaries of at least 25% of the capital of the company.

The companies must disclose and update the ownership details on a regular basis. In case of failure to complete identity verification of UBOs, companies, and banks may have to pay heavy fines for AML regulatory violations.

That's why it's necessary to have an ID verification framework and process backed by AML and KYC solutions that obligate the account holders to declare the UBOs.

Integrating UBO verification in custom onboarding can be difficult. However, it can be done with the help of Enhanced Due Diligence (EDD) with biometric technology that enables real-time digital identity verification.

Closing

KYC and AML solutions can make onboarding easier, more advanced, and safer. At Accura Scan, our team is dedicated to making online processes seamless for smooth functioning. We are a leading name in scanning technology and have many products like OCR, AML, and video KYC that ensure fast and secure execution of various business activities. For more details, call us on +91 820-898-8751 or mail us at sales@accurascan.com.