How improving KYC can help you gain business
While KYC checks are often associated with the finance sector, it is important to acknowledge that these checks are actually vital for regulated businesses across several industries. From FinTechs to Real Estate Agencies, in today’s digital world, KYC and ID verification are essential to protect your business from cybercrime and fraud. Money laundering is said to cost the world around 2-5% of the global GDP annually, which amounts to approximately $800 billion – $2 trillion.
Money laundering is not preventable entirely, but it can be minimized and avoided, especially if individual businesses adhere to KYC/AML regulations and make conscious efforts to protect themselves. KYC has traditionally been a long and costly process, but thanks to automation and digitization, it can now be easy, simple, and affordable. However, some businesses see adhering to KYC regulations as a chore, or as something that must be done to avoid costly fines and sanctions – but these businesses do not realize how digital KYC can tap into increasing your revenue and help you gain business.
e-KYC not only keeps you protected from potential damages, but also helps you gain and retain business in the following ways:
Increasing customer loyalty
Onboarding is the first interaction your business has with a potential customer, and it is where your customer forms their first impression of your business and how it operates. If your onboarding process is long and tedious, your customer is less likely to want to work with you again. However, the smoother the onboarding process, as well as the processes that come after, the better their opinion of your organization, and as a result, the more likely they are to stay loyal in the long term. Digital onboarding is proven to provide the best experience for your customers due to its simple, quick, and direct process.
Boosted approval rates
With fast and reliable digital KYC, you will be able to approve customers, employees, and business partners at a quicker rate, and these customers will be able to work with your business in less time. The faster your customers have access to your business, the higher their approval rates will be. Every customer looks for the quickest, most frictionless onboarding process – when your onboarding process is digital, that is a given.
Keeping up with KYC/AML regulations, and having robust and secure digital ID verification systems show that not only do you take regulatory compliance seriously, but also that you are willing to move with the times and transition into a digital phase to improve your customers’ experience. Customers will become more interested in working with your business when you build up a reputation of a trustworthy business that takes the security needs of your customers seriously. Once this reputation is built, customers are more likely to work with you over your competition.