3 Ways KYC solutions for Banks can benefit from Blockchain

KYC solutions for banks are gaining prominence these days with smaller banks giving priority to bank KYC online using online ID verification. Many KYC service provider, after realizing the importance of KYC in banking, has launching bank account KYC. Know Your customer checklist includes ID verification, facial verification, handwritten note verification and sometimes even a customized document verification. AML banking compliance has also forced identity verification services to launch KYC solutions for Banks that offer AML background checks as well.

Why Blockchain is perfect for Banking KYC?

Remote bank account opening has also been made easier by KYC process steps that integrate flawlessly in the online system of the banking organizations. KYC requirements for corporates empower identity risk management. But there is always a risk of losing crucial personal information as well as financial data of customers collected through a risk control verification service. KYC in banks can turn into a cruel joke if the personal or financial information collected for identity verification by a banking KYC service falls into the hands of data hackers or cybercriminals. The blockchain is already placing itself as the ideal protector of personal information as many as 88% of fintech companies are expecting that they will be using blockchain by 2020. So here are the 3 reasons why KYC solutions for banks can benefit from blockchain.

Secure Bank KYC – KYC bank accounts create a sense of trust among the banking service provider and the customer availing those services. Know your customer requirements for banks make online ID verification comprehensive and thorough for banking customers. So collected information is greatly in need of a risk control verification service that can be trusted completely. Blockchain integrated with banking KYC ensure that personal and financial information of banking customers remains fully secure.

 

AML Checks – Most KYC service providers are offering KYC solutions for banks that have an added feature of banking AML compliance. These are perfect prevention against AML fines for banks without having to integrate any other AML banking compliance solution. A large databank stored in blockchain containing financial risk data can serve as a perfect tool to perform online ID verification along with AML background checks. Shufti Pro performs KYC for banks using financial risk data from 3000+ databases, 1000+ sanction lists, and Politically Exposed Persons (PEPs).

Automated KYC Banking – KYC for banks solutions that take help from blockchain has a better chance to perform KYC in bank operations. All the KYC process steps are automated and end users have to spend considerably less amount of time in identity verification as compared to a manual banking KYC system.

KYC solutions for banks are necessary for overall smooth operations and to avoid AML fines for banks as well as fulfilling know your customer requirements. Shufti Pro has designed a bank KYC solution that is not only cost effective because of its pay as you go pricing model but also provides flawless KYC check for banks through its AI backed verification services.

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