Know Your Customer data, often abbreviated to KYC, is often seen as a simple obligation brokers and other businesses must comply to.
The procedure is mandatory for companies operating within a wide range of industries and while it does seem straightforward it is usually not used by businesses to its full potential.
So, clients sign up on a website, send in their personal information to the company which subsequently validates that data, and that’s the end of it.
Or is it?
The formula, albeit simple on paper has nuances many companies actually tend to miss.
What often ends up happening is that some companies comply with KYC regulations and data security but have a slow and dragged-out process, full of friction which can even scare away potential clients.
Other companies might attempt to cut corners and be fast but might lack the adaptability their business needs or the necessary data protection.
So, what are the 3 pieces which form the KYC trilemma and how can you solve it?
#1 Addressing Regulations and Friction in the Onboarding Process
As KYC compliance gets harder in a constantly moving regulatory landscape, when employing KYC and AML measures it is important for businesses to not lose their focus and overcomplicate their onboarding process.
Removing friction while being able to gather data for regulatory compliance purposes is something many businesses have still not got right.
A clever way of addressing the issue is to have an in real time process in which compliance managers are able to check and verify the information immediately.
By doing so, compliance managers can also contact the individual if further proof for verification is necessary.
All in all, these steps allow for the onboarding to become less of a dragged-out process and to feels much smoother on both ends.
#2 Having a fully customizable solution
Regulatory compliance is seen as the hard, static part of the onboarding process.
It is something new users have to go through and often tend to think that it might be unnecessary and that it feels dragged out.
However, that shouldn’t keep you away from having a custom solution, fitted to your business needs.
Just like a company must adhere to the legislation of the country in which it operates, verticals can also be very different from one company to another, and from one industry to another.
Finding an elegant, sophisticated solution may not be an easy task but it is certainly possible.
Breakthrough companies are providing such services but what many claim to have, only a few can deliver.
#3 Addressing security concerns
KYC data hosting is a synonym to hacker honeypot.
It is quintessential that your business addresses this issue in a way that is fully compliant to the industry standards.
As such, you cannot afford to cut costs on security as a way of having a faster onboarding process, so even if you do partner with outside sources, they too must adhere to the industry regulations.
So, how can RecognID help you solve the KYC trilemma?
The best possible solution for the KYC trilemma is to partner up with someone who fully understands your KYC pains and that’s where RecognID comes into play.
RecognID has taken over the KYC landscape by storm and the reason for it is actually quite simple: it comes from experts in the field who were already working within the very core of the business.
RecognID was created by a team who knows all the ins-and-outs of the business because they already were operating successfully in a regulated environment being part of MD Finance, Lending-as-a-Service provider and international lending company.
The team knew the pains KYC better than anyone and so, they simply rolled up their sleeves and developed the perfect KYC solution for themselves at first.
However, given that it is based on real costumer and market needs, it soon was met with high demand.
As such, it comes as no surprise that their quickly gaining market share as years of practice went into their products.
Accordingly, their features can fully adapt to their clients’ needs regardless of the country in which they operate or the verticals they might have.
And with a data science team at the ready, their KYC solutions are getting better by the day.
Wrapping up
Solving the KYC trilemma shouldn’t be a hard endeavor if you choose to side with the people who already know the field in which you operate.
The way you handle your KYC data, and your onboarding processes can make or break your business and by using RecognID you are guaranteed to be getting a product that is made by leading experts who have vast experience in the field and know exactly how to address your needs.
By having a tailor-made onboarding process that covers all your needs and activities straight from those who understand your pains is the surefire way of solving the KYC trilemma as you get reduced friction, a custom-made solution, and the data protection you need.
There is a massive difference between simply outsourcing your onboarding processes to external developers and having a partner who fully understands where you’re coming from and what you need.
That’s where RecognID comes into play and make no mistake because that alone can easily set you ahead of your competitors.
