Automated Client Onboarding and Identity Verification for Fintech Industry: Best Practices

Automated client onboarding software for a smooth and secure user experience is vital to fintech success. However, this client solution must be achieved alongside a robust anti-money laundering (AML) and KYC for fintech companies.

Identity verification for the fintech industry has certain best practices to ensure a world-class automated customer onboarding experience without compromising the AML-KYC compliance of a fintech business. In this blog, we will read how advanced automation has changed the way fintech does business and performs its KYC checks securely and efficiently. The fintech industry segmentation is huge, with investment & capital, digital lending, ecommerce, data solutions, insurance & healthcare, and payments all falling under the scope of fintech.

The fintech industry has the highest number of start-ups today. Robotic Process Automation (RPA) in fintech helps companies speed up their remote onboarding process while strictly adhering to the fintech guidelines and regulations.

A Unified API System Approach for Fintech

Empowering Robotic Process Automation (RPA) in fintech is vital to maintaining a centralized system with a unified API for business operations. Gone are the days when customers had to wait for a month for their onboarding approval. To survive in the competitive market, automated client onboarding software fulfills the norms of KYC for fintech companies.

Client databases, document IDs, client profiles, and background sources are linked and stored strategically to perform frictionless multiple verification methods using a centralized API system.

Identity Verification for Fintech

Automated Customer Onboarding with Single Step Integration

Seamless customer onboarding steps should not come at the cost of risking the AML-KYC regulatory standards, or a fintech may have to pay hefty non-compliance fines to the authorities for such negligence. The user identity, individual or business, should be matched against strong and authentic datasets to assure compliance with the due diligence procedures.

An automated client onboarding software offers multiple methods of identity verification for the fintech industry with single-step integration. This state of art software comes with various inbuilt features, for instance, two-factor authentication (2FA) or a multi-factor authentication onboarding method. Identity checks are enhanced thru liveness detection, biometrics authentication, and facial recognition technologies.

A Tailormade KYC for Fintech Companies

Fintech trends are continuously changing. Industries must remain updated with the Robotic Process Automation (RPA) in fintech.  The robotic identity verification process for the fintech industry encapsulates various anti-money laundering (AML) and Combating the Financing of Terrorism (CFT) regulatory frameworks. Fintech businesses can leverage various tailormade and automated customer onboarding technologies to scale up their onboarding operations, combating regulatory and technological challenges.

It is on the part of the businesses to follow the national and international regulations and remain fully AML-KYC compliant. Customized automated client onboarding software has certain inbuilt features and is continuously upgrading. The core AML-KYC and Know Your Business (KYB) regulatory guidelines like FATF, GDPR, and international sanctions features are also ingrained in the software that must apply to businesses.

Audit Trail and KYC Automation in Fintech

Identity verification for the fintech industry not only means onboarding efficiency but also extends continuous transaction monitoring and performance of due diligence of the entire customer lifecycle. These transaction-monitoring red-flag rules vary from industry to industry depending on the nature and operational region of the company.

Monitoring client behavior and suspicious transaction activities also fall under this ambit—an ideal automated client onboarding software auto-generates red flags based on the scenario or pre-historical dataset model. And maintains an audit trail based on the client-behavioral patterns.

Fintech demands a mass user-onboarding process automation with the best UX-UI KYC verification interface to reduce friction at the minimum possible levels. IDMERIT extends KYC automation with IDMkyc and IDMscan products. We use AI Machine Learning technologies to verify identities against the most authentic databases. IDMkyb authenticates worldwide businesses to offer a secure merchant onboarding method for fintech enterprises.

Jay Raol
Jay Raol

Jay Raol has been a Media Manager, Entrepreneur, Political Analyst and an Environmentalist. He aspires to climb the mighty Himalayas, and learn a new language every year. He lives in the beautiful city of Carlsbad in Southern California and owns a great collection of books. He is on schedule to publish his first book; 'Thou Art, Dope'. Co-founded two companies that provide futuristic solutions to the world while being quite enthusiastic about helping and investing in technology startups.

Get Notified about Industry Updates