Excerpt from CRN Article, Published on Jan 17, 2024
In a bid to revolutionize Know Your Customer (KYC) processes and elevate compliance standards, N. Shashidhar, Global Platform Head at EdgeVerve, explores the potential of a platform-based approach. Acknowledging the challenges posed by compartmentalized functions within financial institutions, Shashidhar highlights the need for a cohesive strategy to overcome operational inefficiencies and enhance customer satisfaction.
Traditional KYC practices in financial organizations involve extensive paperwork, contributing to labor-intensive processes and significant annual expenditures. The trifecta of Customer Identification Programs, Customer Due Diligence, and Continuous Monitoring demands meticulous attention to detail, often resulting in isolated data pools and regulatory risks.
The current technological landscape exacerbates the issue, with outdated systems hindering seamless data integration and interoperability. Shashidhar says that departmental autonomy and relying on old technology are what cause siloed KYC processes, which cause operational inefficiencies, higher regulatory risks, and data security threats.
To break down these silos, Shashidhar advocates for a platform-based approach, citing a successful case where a global bank streamlined KYC processes using an AI-powered unified platform. This model, incorporating supervised and unsupervised learning for document discovery, not only reduced costs and enhanced efficiency but also fortified regulatory compliance through complete visibility on a single platform.
The proposed platform-based approach involves re-imagining KYC experiences through a unified interface, employing document AI for automated information extraction, consolidating data from diverse sources for verification, enhancing decision-making with AI co-pilots, and transitioning to a streamlined, system-driven approach.
In conclusion, the integration of AI-powered platforms in KYC processes represents a significant leap forward in the financial sector. Shashidhar emphasizes that this transformative journey goes beyond mere compliance, fostering a culture of innovation and excellence in banking and financial services. Financial institutions adopting this cutting-edge approach are poised to set new standards in compliance, efficiency, and customer engagement, marking a pivotal moment in the industry’s evolution.
To delve deeper into this topic, please read the full article on CRN