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