Category: Business

KYC Automation Essentials Every Business Owner Should Know

The market of fraud prevention with KYC automation (Know Your Customer) identity verification system is estimated to exceed $1 billion by the end of 2026.

Global Newswire reports that the CAGR of the industry is 22% between 2019 and 2027, which proves its high demand. The technology can significantly improve customer due diligence (CDD) and help your company reduce the number of successful fraud attempts by revealing the risks associated with particular customers. And as the value of KYC is quite clear, the challenge is to integrate and automate KYC to make it work for the company’s good while it performs the main operations in the safe zone. 

The Problem

One of the biggest problems current KYC systems have been facing over the past few years is the lack of automation in document verification, data entry, and customer onboarding. A typical case can take over a week and always irritates both customers and the employees who process the data. Besides the immense time demands, manual reviewers can’t guarantee 100% accuracy. 

KYC Automation Essentials Every Business Owner

The Solution

Now that you know the KYC problem, learn the latest cost-cutting solutions:

  1. Image quality check AI automation – automation of this process can reduce the time needed to check whether the customer image matches a complex list of parameters. Unlike a human reviewer, AI can analyze multiple parameters simultaneously and send immediate feedback to the customer with a query to upload another image. The whole process will take minutes instead of days. 
  2. Verification automation – verification of the accepted images is another potentially time-consuming challenge that requires a precise analysis of documentation. Using trained OCR models and object detection algorithms, you can reduce the time needed to find flaws in documentation to minutes and only work on reports if needed. 
  3. Fraud detection automation – automated entry data verification can significantly reduce the chances of falsified information pass and achieve the right to conduct transactions. Human reviewers are, so to say, weak when it comes to the detection of digital image counterfeits, while AI can spot aspects that can’t be seen by a human eye. 
  4. Document digitization automation – once all the images and documents are thoroughly checked and verified, they have to be entered into a piece of software for indexation and storing. Automated data extraction is called to reduce the time needed for the process. 

Fortunately, a large amount of automation can be done with ready-made cloud data capture automation APIs that can do all the work without the need for company-based processing facilities. Covery.ai and similar systems already provide seamless integration, compliance, and full KYC automation. 

Is It Essential?

Simplicity and reliability are what every business seeks to provide the fastest and smoothest experience to the customers. With an immense surge in the number of fraudster attacks on businesses worldwide, KYC integration appears to be one of the ways to seal the potential breaches in the security system. If a system is already on, a company’s duty is to make it as seamless as possible.

How a Merchant Portal Assists Your Business

You’ve decided to start an online business.

No matter if you sell material items or digital content, or something even more ephemeral. Payments made by your customers should be easy for them – and easily make their way to you. That’s when a merchant portal steps into the rescue. Embedding one into your website makes it extremely easy to process payments you receive and analyze your activity.

How a Merchant Portal Assists Your Business

All Systems Go!

While there are lots of payment systems, customers stick to what they find best. Some prefer the good old VISA and MasterCard, others are all about PayPal, Skrill, or TransferWIse, and some trust GooglePay and ApplePay. A customer should be able to pay the way they prefer; a merchant needs to find out how to receive these payments most comfortably. That’s why a payment gateway is an integral part of a merchant portal.

It’s even more than that: the portal lets you work manually with certain customers. This eases refunds, disputes, check subscriptions, and so on.

No Borders

Merchant portals are extremely important for international businesses. If you sell your products worldwide (or even in several countries), banking issues pop up unexpectedly. Currency exchange rates may eat more of your income than you might expect. Transactions can take more time when made directly. In addition, there can be issues with tax laws, sometimes even causing double taxation. These and other reasons can prevent payments from succeeding.

The merchant portal has special tools that let the merchant apply certain rules for payments from certain countries, currencies, applications, and card brands and types. Applied correctly, they can minimize refusals and maximize the number of successful transactions.

While lots of currencies can be accepted, the choice of base currencies is smaller. Still, choosing between USD, EUR and GBP should be enough for most merchants. The portal supports separate accounts for each currency, so you can have multiple ones to avoid unnecessary exchange fees.

Analyze This

Along with a payment gateway, the merchant portal provides analytics on payments. This data can be precious for an analyst, as it lets the merchant compare various periods’ stats and latest changes and consider all the impacts the business had.

On the portal, you can access stats like the number of sales within a certain time, the payout volume, the number of all the transactions and (separately) successful transactions, and the current balance formed by successful transactions in each currency. This makes the merchant portal a powerful tool for reflecting your business views and comparing them to reality. If you feel it’s time for upgrades and improvements, the portal can tell you many useful things.

Put Our Differences Behind Us

If you have ever played the famous Portal, you may remember this quote. A merchant portal in real life, though, does it better, putting all the differences behind so they don’t stand in the way of your success. If you like this article, share it on your Facebook or Twitter. And if you have already been enjoying the portal, share your experience here.