Top KYC Best Practices Any Fintech Should Follow

Top KYC Best Practices Any Fintech Should Follow

Honestly, the term ‘Know Your Customer‘ does not suggest anything to most people, but that does not mean that it has a weighty meaning in the business world. 

The ‘know your client’ process, mostly known by its acronym in English, ‘KYC‘, is what financial entities carry out to verify the identity of their clients in compliance with legal requirements.

This article will discuss the top KYC best practices related to fintech, so make sure to catch them. Currently, due to the problems of corruption, money laundering and financing of terrorism, KYC policies have become a vital tool to combat illegal transactions in international finance. 

What is KYC, and What is it For?

We must begin by explaining this and then move on to the substantial part of the subject. KYC means ‘Know Your Customer ‘which translates to ‘Know your customer’. This term encompasses supervision where different controls and guidelines are developed to get to know new and old customers. Commonly, at the beginning of the opening, various documents are requested. 

Still, through the KYC, more proof and critical information must be requested and confirmed to track the funds and the origin of the assets. Clients must provide all this information so that they can identify the nature of their professional and business activity and can identify the nature of their professional and business activity. 

This can take measures to verify the integrity of said information. Knowing the client well, both banks and financial institutions worldwide seek to avoid all kinds of problems and crimes, such as money laundering, corruption, money laundering, and everything related to the financing of terrorism and drugs that can be present in the country. 

What does the KYC Procedure Consist of? 

To comply with all international anti-terrorism financing and anti-money laundering regulations, one must implement KYC procedures at the first stage of any business relationship with a new customer. KYC begins with the goal of collecting personal customer data to verify that they are who they say they are. 

Within the financial sector, this involves verifying your identity using documents, for example, your passport or national identity card. For some financial institutions, this process continues to be carried out in person and on paper.

Still, in some others, this process has already become a 100% digital procedure, which has even included additional biometric checks, such as fingerprints or facial recognition, all to be able to recognize the holder of the document in question. 

This innovative digital identity verification system enables banks to automatically capture customer data that can integrate into business systems such as CRMs to streamline their onboarding process. 

Top KYC Practices Personalized Experience

It is no longer a novelty that the closer the customer feels to the company, the more chances to identify and create emotional bonds. All the ‘company-client’ connection points must form a common front to ensure the perception of those receiving the final service is maintained. 

In conclusion, closeness with the client will create a more attached and lasting relationship. Train the work team to provide good customer service: Each person who comes into contact with a new customer for the first time is an opportunity to trigger emotions, and if they are positive, then much better. 

Grand gestures and good emotions will allow us to create that close relationship with the client we previously mentioned. 

Create positive experiences: The positioning of the company is the exact way in which the consumer locates you and is directly related to your reputation in all areas: relationship with your client and quality of your services, among others. 

The most advisable thing is to be honestly interested in the clients to ensure that you generate expectations of memorable experiences that manage to transcend and generate good comments. 

Turn complaints into new opportunities: Without wanting to exaggerate, every customer complaint is a gift and an opportunity to achieve new benefits. We know that, currently, will disseminate all positive and even more negative comments will disseminate all positive and even more negative comments to hundreds or thousands of users who, in turn, are potential consumers or captive customers.

For this reason, dealing with a complaint and adjusting the situation around it is a perfect opportunity to demonstrate our commitment to his comments and opinions to the client.

Offer communication and support channels: The more and better two-way communication channels you have with your customers, the better relationship and contact they can have. KYC within the world of Fintechs Know Your Customer good practices respond not only to the entity’s need to know who its user is due to legal imperatives; It is an effective way to significantly decrease the risk of fraud. 

KYC allows companies to protect themselves by ensuring they are doing business legally with entirely legitimate entities while also protecting people who might otherwise be harmed by financial crime.



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