Unlocking Efficiency: Verified Identity Messaging in KYC/KYB Procedures
In our previous blog, we looked at the use of traditional communication methods in conducting KYC/KYB refresh projects and some of the challenges that these channels present. In this blog, the second in our two-part series, we will explore how Verified Identity Messaging, an innovative app-based technology, can be used to tackles these obstacles and transform KYC/KYB projects.
What is Verified Identify Messaging?
Verified Identity Messaging (VIM) revolutionises regulated industries by offering a seamless method to engage with customers. It facilitates the collection, processing, and approval of data and documents, bolstered by robust financial crime and compliance controls.
VIM capitalises on the widespread adoption of application-based communication channels. Through the integration of biometric identity verification and secure messaging, VIM establishes a communication platform that simplifies processes for both customers and financial institutions. It eradicates the necessity for intricate email chains and replaces traditional channels such as paper, mail, and telephone. In scenarios within the financial landscape where customers and partners are compelled to use these channels, VIM presents an alternative that significantly enhances efficiency and security for all involved parties.
Verified Identity Messaging for an Enhanced Customer Experience
Numerous digital tools aid in specific KYC tasks but fail to address end-to-end communication challenges, unlike Verified Identity Messaging.VIM consolidates the entire customer journey into one platform, eliminating the need for various communication channels like emails, calls, and physical visits. It simplifies data acquisition by allowing firms to create a streamlined checklist for customers to provide necessary information, documents, and approvals. This approach replaces cumbersome telephony processes, reducing the time from weeks to minutes, removing friction across KYC processes, resulting in an improved customer experience.
Utilising traditional channels for information requests not only frustrates customers but also burdens staff with a lengthy and complex process, leading to backlogs and inefficiencies. Verified Identity Messaging(VIM) eliminates these challenges by significantly reducing processing time sand streamlining all KYC steps. With VIM, employees can efficiently handle KYC cases through instant messaging, automating workflows and consolidating communication channels into one application. This technology simplifies ID verification, document collection, permissions for background checks, and other tasks within a single app. By removing layers of processes, teams can handle more cases in less time, simplifying and enhancing the efficiency of the KYC refresh project.
Gain cost-savings across KYC processes
Another major benefit to financial services firms of using Verified Identity Messaging is the significant cost-savings that can be achieved. A KYC refresh project demands significant financial and human resources, typically accounting for up to 40% of AML expenditure. Costs, which can escalate to over £200,000 a day for larger banking firms, predominantly stem from manual processes, printing, and extensive workforce management. However, VIM drastically reduces these expenses by automating manual steps and eliminating printing and postage. The technology supports both in-house and outsourced KYC teams, enhancing their efficiency and cost-effectiveness. Notably, VIM streamlines staff recruitment and retention, saving a financial services firm money by reducing overtime, backfilling, and consultancy expenses.
In summary, Verified Identity Messaging (VIM) offers a transformative solution to the challenges faced in KYC/KYB procedures. By providing one holistic, end-to-end communication channel, simplifying the customer experience, and significantly reducing operational costs, VIM emerges as a crucial tool for financial institutions. Its ability to streamline processes, enhance efficiency, and ensure compliance underscores its importance in navigating the evolving landscape of KYC/KYB requirements. Adopting VIM becomes a strategic imperative for firms seeking to optimise operations, remain compliant, and deliver superior customer service in the financial sector.
Following this blog series, we will be hosting a webinar in the coming weeks that will delve into this topic even further, leaning on expertise of some key individuals in AML and KYC, so watch this space! However, in the meantime, to learn more you can download our free eBook today.