Evidently many companies fail at complying with current KYC regulations. Major names in the banking sector have faced hefty fines for non-compliance lately, as have many gaming, gambling platforms and crypto exchanges. This therefor begs the question if companies who are lagging in their ability to comply with today's regulations are as ill-prepared for future KYC compliance requirements.
The ongoing global digital transformation doesn't show any sign of losing momentum. To expect the status quo for KYC regulations or within any other area of said transformation is naive. The future will inevitably lead to the enforcement of additional laws and international as well as national security KYC compliance requirements. The number of digital consumers will continuously grow, as will the market for online business and digital banking activities. This will put more pressure on regulated companies, not only in terms of regulatory compliance, but also in regards of applying systems that are flexible enough to accommodate and enable both necessary and desired adjustments and additions of solutions for various business needs, for example cross-border compliance.
Regulatory compliance is not enough
KYC compliance has changed significantly during the past five years. Much due to the ever-changing rules and regulations, but also due to the growing number of digital consumers and online services. But merely regulatory compliance will no longer be sufficient for any company within any competitive market. To remain competitive will call for investments in advanced technology and software that replace manual processes with automation, digital solutions that enable a company to save time, manage risk, increase accuracy and customer protection. Also, making the customers’ experience of KYC processes as intuitive, fast and safe as possible will be a necessity for all financial activities in the digital world. If a company can't deliver a great user experience, then their competitor most definitely will. Regardless of compliance solution it must always live up to customers' demands - including instantaneous money transactions - in a convenient yet safe manner.
Continuous and agile KYC compliance
There are many solutions that cater for a part of the KYC requirements regulated entities need to follow but mastering a seamless flow is what the industry needs. New innovations in artificial intelligence, machine learning and biometrics are continuously evolving to increase efficiency and accuracy in automated KYC compliance processes and for financial transactions and interactions online. However, the greatest challenge for any company is having compliance systems that deliver an intuitive user experience and straight forward flows, conjugated systems that are simultaneously flexible enough to accommodate the ever-changing regulatory requirements both globally and locally. The ZignSec compliance orchestration platform aggregates the global and local solutions for identification and compliance while offering them as a single endpoint and suite of tools for any business worldwide.