How to comply with the regulation without friction for users?

Remote customer acquisition must comply with local regulations and prevent the financial system from being used by criminal industries. Banks can benefit from partnering with technology partners to improve their processes.

Face-to-face procedures, lines at branches and mountains of documents are asynchronous trances with technology and the new habits of financial users.

Nowadays, every customer requires digital processes that are fast, easy to understand and available from any geography, at all times.

However, these procedures and requests start with remote hiring supported by technology.

This must comply with the provisions of local regulators who, in general terms, require that the technology used by means ensure the identification of users embodied in the parameters of Know Your Customer (KYC).

To guarantee this requirement, technological tools must carry out adequate information processing that protects customer data and strengthens banks' security, reinforcing the value of credibility that lies in financial institutions.

In addition, the bank must comply with anti-money laundering and terrorist financing regulations.

Through a Onboarding It effectively prevents people on international money laundering and counter-terrorism lists (for example, from the Office of Foreign Assets Control OFAC) from opening accounts or using banking for criminal purposes.

All these identification and legal compliance processes should not affect the user experience, rather they should facilitate processes and streamline steps that without the help of technology would be tedious and time-consuming in extensive procedures.

Digital KYC Challenges

• Adapt solutions to local regulations by country.
• Balancing regulatory compliance with an appropriate user experience.
• Simplify steps, do not increase friction to avoid abandoning the process.
• Have robust technology that minimizes impersonation fraud.
• Accelerate customer enrollment through digital channels.

To overcome these challenges, banking can rely on digitalization and run in parallel with remote identity validation and authentication processes, something that regulators in all countries demand and reinforces the security that every acquiring institution must have.

To achieve this balance, at Infocorp with IC Onboarding & Origination we make it easier for banks to comply with local regulations without adding unnecessary friction, allowing users to connect quickly and securely to their applications.

How is your financial institution addressing the development of digital channels and their adequate coordination with regulation? We invite you to learn about our Onboarding solutions.