ID Verification - KYC

How KYC can create competitive advantage

January 20, 2023
Table of Content

Streamline your KYC process to customize workflows and offer the best user onboarding experience while remaining compliant

Stringent regulations across many industries, such financial services, fintech, crypto, and sports betting, mandate compliance with Know Your Customer (KYC) statutes. This also holds true for businesses expanding their operations internationally, as they are required to deploy strict KYC checks in order to comply with the regulations of theall the  jurisdictions where they operate.

What is KYC Verification?

KYC refers to the process of requesting information from customers and verifying their true identity during onboarding as well as throughout the digital journeys of all users. It is an essential tool that enables businesses to improve security by verifying users and fighting money laundering or terrorism financing. 

KYC checks are performed both during user onboarding and on an ongoing basis. During onboarding, KYC verification is useful to ascertain whether a user's true identity corresponds with who they claim to be. Ongoing monitoring of existing users allows detection of anomalous or risky activities to take timely corrective actions and protect other users.

The main steps in KYC Verification include: 

  • Verification: Customer data - name, date of birth, address, national identification number, photo and more- are collected and verified against reliable databases. It is also checked if the person is part of any restricted list, sanctions or is a politically exposed person (PEP).

  • Risk assessment: The risk associated with the user is assessed by investigating whether the source of funds is legitimate. This is important to mitigate risks of money laundering or fraudulent transactions.

  • Identification of the ultimate beneficiary: Due diligence of the user is conducted to identify the ultimate beneficiary to better manage risks.

  • Ongoing risk assessment: The in-platform actions of existing users are continuously monitored to detect unusual behavior and activity, allowing real-time intervention in case suspicious or fraudulent activity is detected. This improves security and avoids inconvenience to other customers.

Why KYC is so important for businesses

KYC enables businesses to onboard only genuine users and ensure existing users are legitimate through continuous monitoring of in-platform user actions. This not only reduces risk but also improves the user experience. 

A streamlined KYC process can reduce friction for customers and make the entire process more user-friendly. Technology can play a key role in automating the KYC process to speed up verification and approvals that can increase customer conversion rates.

Caf makes it possible to personalize user onboarding experience

Leading businesses use Caf’s Know Your Everything platform to orchestrate custom onboarding flows and personalize onboarding experience while meeting regulatory obligations at lower costs. 

Caf makes it possible to simplify the KYC process by reducing friction and creating/tweaking rules to automate approvals according to unique business needs and the target user base.  

Learn how your business can benefit from Caf’s automated, user-friendly and more secure KYC verification, contact one of our experts to book a free demo.

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"How KYC can create competitive advantage"