KYC is defined as a ‘Know Your Customer’ or ‘Know Your Client’ process that involves verifying a user’s identity as well as the suitability and potential risks involved with maintaining a business relationship. KYC procedures are especially crucial for financial institutions to understand the nature of a customer’s activity, verify their identity, confirm the legitimacy of a customer’s financial history before providing loans and evaluate potential risks.
It is an essential tool for helping to protect organizations across numerous industries from fraud and other illegal activity. As business processes become more and more complex, modern organizations across all industries such as insurance, banking, retail and much more must closely monitor KYC compliance. However, KYC compliance can often be extremely time-consuming if performed using manual processes.
Low-code is a visual approach to software development that requires almost no traditional coding to create powerful enterprise applications and business processes. These platforms enable citizen developers with little to no traditional coding experience to leverage the power of low-code automation to eliminate various time-consuming, impractical aspects of KYC compliance. Recent studies have shown that 26% of executives believe that low-code platforms are the most critical investment in automation.
Common KYC Challenges:
1) Siloed Organizational Data
Siloed data is typically stored in a separate system and may often be incompatible with other sets of organizational data. Data silos can significantly hamper the success of data analytics processes and various digital transformation initiatives. Furthermore, data silos can affect managerial ability to make accurate, data-driven decisions. Inaccurate or uncredible data can also hamper your business’s ability to communicate and share organizational insights with primary stakeholders. Recent studies have shown that the average organizational team wastes more than 20 hours per month due to poor internal collaboration and communication.
2) Accessing Relevant Information
Due to recent increases in the amount of data-driven decision-making processes in modern businesses, compliance teams may frequently require access to historical organizational data for KYC compliance processes. However, many organizations may need to sort through large amounts of unstructured data to find relevant information. This can not only reduce organizational efficiency as a whole but may also lead to reduced employee satisfaction levels.
3) Manual Business Processes
Manual business processes may substantially increase the length of the KYC compliance cycle. Furthermore, manual business processes such as analyzing individual customer documentation may even lead to increased customer wait times, which could potentially reduce organizational productivity in the long run. Manual business processes may also result in an increased risk of human error and reduced employee engagement.
How Low-Code Can Help Improve KYC Compliance:
1) Integrated Data Systems
Many businesses may currently rely on outdated legacy stems that are not designed to facilitate data accessibility across various data systems. Therefore, low-code platforms can help consolidate data from disparate legacy systems in one centralized location using pre-built integration tools and API connectivity, hence making data-backed decision-making processes much easier than ever before. To maximize the value of organizational data insights, it is crucial to connect and integrate various data systems.
Once all of your business’s historical data is available in one centralized location, your employees and stakeholders will be able to access key insights in real time with little to no time delays. Furthermore, your business will be able to utilize these insights to improve various business processes and provide better customer experiences.
2) Data-Driven Decision-Making Processes
As low-code technology continues to evolve at an exponential rate, modern businesses can fuel digital transformation initiatives much more than ever before. Low-code platforms can enable citizen developers with little to no traditional coding experience to develop powerful enterprise applications without the interference of a skilled software developer. Therefore, your business will be able to develop advanced, high-functioning solutions to complete various KYC compliance processes much faster than ever before.
Employees can leverage the power of a user-friendly decision-making framework to design automation workflows that can be used across numerous organizational departments using low-code platforms. Low-code platforms can also help your business take advantage of automation tools to create consolidated, comprehensive and holistic data reports that can facilitate more efficient data-driven decision-making processes.
Therefore, low-code platforms can enable your business to develop advanced solutions that can help perform various KYC compliance procedures more efficiently and effectively.
3) Low-Code Workflow Automation
As business processes become increasingly complex, workflow automation is now more essential than ever before. However, manually creating individual automation solutions for individual business processes may require a substantial amount of scarce organizational resources and time. Therefore, low-code development platforms can help automate various organizational workflows to make KYC compliance processes much more effective.
Drag-and-drop tools, mobility tools and instant deployment features can empower your business to automate various repetitive aspects of the KYC compliance process. This can not only help automate various time-consuming workflows but can also enable your employees to work on higher-level, more intellectually stimulating business processes.
4) Agility and Flexibility
As rules and regulations change over time, your business is expected to be able to adapt and refine KYC compliance processes. However, it can be extremely difficult for businesses to not only keep track of changing rules and regulations but also manually update enterprise applications to be able to adapt to changing procedures.
However, low-code application development can empower your business to utilize automation to quickly respond to changing KYC compliance requirements. Low-code platforms can also help employees smoothly adapt to changes without any significant disruptions or downtime. A recent study conducted by Forrester has shown that 90% of business leaders believe that the flexible design of low-code platforms can significantly improve customer experiences.
Planet Crust – Improve KYC Compliance Using Low-Code:
KYC compliance processes can be extremely repetitive and time-consuming for modern businesses across numerous industries. However, low-code application development platforms can help your business address these challenges cost-effectively and efficiently.
Low-code technology can help your business build integrated data systems, facilitate data-driven decision-making processes, empower low-code workflow automation and improve agility and flexibility. Corteza, created by Planet Crust, is a 100% open-source low-code platform that is equipped with integration capabilities, API connectivity, customizable user interfaces, cloud-ready architecture and much more.
Try a trial now so that your business can take advantage of the wide variety of benefits of low-code technology to improve KYC compliance.