Artificial Intelligence in KYC Automation: what every business should know
Artificial Intelligence is all over. Wherever you see or whatever you use, AI has taken over everything. No wonder technology has now reached the banking sector as well. It is now a common thought that Artificial intelligence has the potential to transform and evolve the KYC. The technology takes only a few minutes to read the data, identify a pattern and compare previous and current conclusions, and give you an accurate report. AI for KYC is the need of the hour in the banking sector. Professionals believe that these two can together give a better customer experience. Let’s begin with learning the two important terms in this write-up.
KYC: KYC stands for Know your customer. It is a concept in which a business tries to establish a cordial customer relationship. It also includes a step to acquire, identify and safeguard customers' and client personal Artificialdata. Intelligence: It is the technology via which computers can perform a task more efficiently and speedily as compared to humans. We are surrounded by this technology as it is present in every electronic gadget you use at present.
KYC and customer onboarding process Betterprocessdiligence Error-freeoperation No suspicious act
● Better diligence process When a company handles vast data, it becomes difficult to find and manage profiles at risk. Artificial intelligence for KYC will allow banks to check the risk profile of a particular client in seconds against thousands of other entries in the database. This particular technology trait educates how important it is to maintain strong standards to remain obedient to the regulatory framework.
Here is how artificial intelligence improves the KYC and customer onboarding process:
The artificial intelligence approach in KYC can help detect any suspicious activity in the money flow. It can be done by embedding the responsible factors in the AI model. It will mitigate the hazards of dirty money flow on its own. The technology will track malicious acts and associated transactions of present and past based on overall database monitoring, eventually assisting brands to fight against fraudulent acts.
Handling and going through the lengthy database are tedious tasks. When done manually, the chances of error are higher than the expectation. Regulating databases is a time and energy-consuming job. Higher chances of error mean higher chances of fraudulent transactions. Ai when introduced to KYC reduces error, time-consumed, and response mechanism. Automation makes the customer onboarding process easier and risk-free.
● Error-free operation
● No suspicious act
