KYC process in theory and in practice

KYC process

In times of GDPR but also of artificial intelligence and digitization, KYC processes make the difference. During the meeting hosted by Fintech District last week, we deepened together with Assofintech and Enhancers all aspects of the analog-to-digital evolution of the KYC process – legal, technological, economic, practical, … – to end with three Case Histories. Gimme5, buddybank and Club Deal have indeed told their experience and successful choices made

Winning choices? It seems so!

After listening to the point of view of the institutions, with Sebastiano Barbanti, the legal one, with Antonio Labate (Assofintech) and Lisa Vascellar Dal Fiol (Studio Biscozzi Nobili), Luca Troisi (Enhancers) illustrated “best practices and dos & dont’s” related to the KYC process. These are his recommendations:

  • Request the correct number of information in proportion to the product / service to which the user wants to access
  • Think about the product offer in a modular way in order to make the process of progressive onboarding
  • Adopt a human-centric approach that employs technology to speed up the onboarding process for the user and not necessarily for the bank
  • Explain step by step the requested information, the reason for the request and the completely more agile mode for each type of user

KYC processUntil today, the analogical KYC process required too much time for the user who was also obliged to interact personally with people and to respect time limits. With the transition to digital, if well managed, we can provide the customer with a hybrid experience also suitable for those with few digital skills. The risk related to a KYC process with a bad user experience is to lose numerous business opportunities

Today it is necessary to find a compromise between the needs dictated by KYC, MiFID and AML (collect many volumes and keep them for years) and the requests related to the GDPR (gather as few data as possible and store them only for the necessary time)

The three case histories presented during the meeting last week showed that it is possible to find an effective solution that takes this into account. Angelo D’Alessandro from buddybank talked about his experience as a digital bank, Flavio Talarico (Gimme5) explained his Fintech company experience while Antonio Chiarelli (ClubDeal) intervened as an international player. Their three different points of view converge on the need not to neglect the KYC process and never let it “grow old”.

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KYC process

Author: Admin

11 June 2018



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