1 The Challenge

Organizations face a range of challenges that impact both institutions and their customers, particularly in areas like compliance for Know Your Customer (KYC) and Anti-Money Laundering (AML) regulation, fraud prevention, and customer experience. These challenges don’t exist individually; each impacts and complicates the others. For example, regulatory obligations and rising fraud add requirements to an onboarding experience that customers already have strong opinions about. Balancing the growing threat of fraud with the high customer demand for seamless, secure digital experiences creates a challenging environment for institutions trying to evolve their digital services.

Organizations from a multitude of industries often face the following challenges:

1.1 Stringent Requirements for Compliance

Organizations in regulated industries such as financial institutions are obligated to comply with KYC regulations. KYC processes typically include identity verification. If not modernized, KYC can be a high-effort step for both customers and institutions during onboarding, rely on manual processes, and degrade the overall customer experience. Without modern approaches, KYC requirements have prevented many industries from onboarding customers with all-digital flows, which made for choppy and lengthy onboarding experiences and increased drop-offs. Related measures are AML regulation and Customer Due Diligence (CDD).