An unexpected interruption was witnessed in the global banking industry due to the worldwide shutdown. The resulting slowdown and recession have led to high demand for digitization in all aspects of banking services. Earlier offering banking products and services digitally to customers was an option, however, in the current scenario, an absence of digital transformation can cost a bank its survival.
Banks have started realizing the disruptive potential of digitization. Bearing in mind the typical customer lifecycle in a bank, the first touchpoint is the onboarding process. One of the key processes that major banks have digitized due to the pandemic is the customer onboarding. The customer gets the very first experience and impression of the bank he/she is getting associated with. Having a digitized and advanced electronic KYC process can help banks in increasing the ease, speed, and even the volume of new customers onboarded at a time.
How does Digital Customer Onboarding Help?
- Lowers cost and improves compliance
- Streamlined and more competent process
- Eases process workflows of financial institutions
- Lesser time in KYC due diligence
- Saves time of the user
- Smoothens the onboarding process
- Improves business and client relationships with a decreased turnaround time
Automation in Digital e-KYC solutions with Artificial Intelligence
e-KYC software solutions have received global acceptance as an increasing number of regulators are approving complete digitization. As the demands of customers are ever-evolving, banks must think ahead in terms of further automating their e-KYC solutions.
With a spike in demand for banking services like new loan requests amid crisis, e-KYC has become an essential part of banking operations globally.
Artificial intelligence can deliver e-KYC requirements with effective automation such as an AI-led facial recognition, OCR, and fraud detection solutions and offer -
- Cost-effectiveness by reducing customer onboarding costs by manifolds
- Process acceleration to quicken identity verification and data storage
- Operation resilience while ensuring security and scalability
Banks can employ Artificial Intelligence to make their KYC procedures more accurate, reliable, and automated in the following ways.
Document Management Automation with OCR
In the customer onboarding process, digital copies of identity documents, like ID cards, passports, and driving licenses are prerequisites. Optical Character Recognition (OCR) systems enable text capture and extraction from scanned documents. By employing AI in OCR applications, it can extract customer information from unstructured documents with agility and accuracy. The AI-OCR tool can automatically capture, extract, and develop an editable copy of the customer information for an efficient KYC.
Facial Recognition driven by Artificial Intelligence
Video-based KYC processes have made a buzz in the banking industry in the past year. To guarantee the authentication of video-based KYC processes, facial recognition technology driven by Artificial Intelligence efficiently maps distinct facial features from images and videos in real-time. Supported by deep learning algorithms, facial recognition solutions generate a unique face print like fingerprints of applicants. Further on, in-built analytics in Artificial Intelligence allows banks to detect fake images and provide in-depth insights.
Keeping Up with Regulatory Changes and Compliance
Artificial Intelligence can detect patterns in a vast amount of text and enables it to form an understanding of the ever-fluctuating regulatory environment. Additionally, Natural Language Processing can scrutinize and classify documents, extract valuable data like client identities, products, and processes that can be impacted by regulatory change and keep the bank, and the client up to date with these changes.
Automating Transaction Monitoring Process
Banks and financial institutions can now control billions of transactions by automating their transaction monitoring processes. The Transaction Monitoring process is a prerequisite for businesses under Anti-money Laundering (AML) obligations. AML Transaction Monitoring controls generate high levels of false-positive alerts. Banks face even more cost issues due to efficiencies in the investigation process. Artificial Intelligence provides meaningful opportunities to significantly reduce operational costs without harming the effectiveness by introducing machine learning techniques at various stages of the transaction monitoring process.
Deploying an AI-driven e-KYC Model
As the world is facing a challenging economic environment, creating an impactful and memorable first impression is crucial for banks. It is time for banks to adopt and automate their key processes like client onboarding by enabling it with Artificial Intelligence. Panamax’s Smart Biometrics with eKYC solution has helped enterprises, governments, banks and API partners to record and manage customer data. It provides flexible KYC fields and document collection, compression, storage, and management.