Nowadays when anti money laundering (AML) regulations are imposed on all kinds of traditional financial institutions such as banks, insurers, export creditors, and even non-financial industry, fintech, virtual assets dealers and non-profit organisations — choosing the best AML and KYC (“know your customer”) software is a truly difficult, long-standing task.

Although today numerous globe-wide KYC (“know your customer”) service providers offer powerful KYC software solutions incorporated with undoubtedly innovative strategies, their products often leave clients unsatisfied — to put it mildly.

Not particularly user-friendly management platforms and lack of certain product features easily cause so-called bottlenecks in the working process, which in their turn often result in longer verification time, false positive results, extra costs and other frustrating constraints that prevent business from achieving its goals fast and effectively.

Is there any way to “break” the bottlenecks and if “yes”, then which one is it? Let’s have a look a bit closer at this nerve-racking yet vital issue in today’s discussion and try to find out the answers together.

The concept of bottlenecks is a central element of Elijah Goldratt’s Theory of System Constraints (TOC), the management philosophy paradigm first introduced in his book titled The Goal (1984), that is meant to help organisations continually achieve their goals.

Theory of constraints is based on the premise that the rate of goal achievement in a goal-orientated system i.e. the system’s throughput, is limited by at least (!) one constraint. (A constraint in this context is anything that prevents the system from achieving its goal) and overall throughput can be increased only by increasing flow through the obstruction.

When a constraint’s throughput capacity is elevated to the point where it is no longer the system’s limiting factor, it is being considered to “break” the constraint.

Apparently, the biggest bottlenecks to challenge in AML and KYC verification processes are: insufficient automatisation and lack of integration with other elements of KYC and AML.

The way equipment is currently used limits the ability of the system to produce more salable goods or services.

Despite high costs and lengthy KYC procedures, 84% of businesses still feel burdened as current manual procedures can’t guarantee accurate verification of customer’s identity. The human elements in the system can easily be tricked.
By using automation, service providers and financial entities can significantly trim this process for way more efficient KYC practices. Instead of data being sent to a torrent of unsustainable expensive, slow and sometimes unmotivated verifiers, automation can verify individuals using far more accurate systems in seconds.

BASIS ID is one of such innovators in the field of data analysis and personal data verification, who stands far in front of the legions of concurrent companies competing in the sphere of providing AML and KYC verification services.

BASIS ID is a KYC service provider, that delivers identity verification, risk and fraud management services worldwide. A distinctive feature of BASIS ID is flexibility in providing customised solutions and integration with various services and industry-specific solutions.

BASIS ID has excellent integration capacities — which means this software can collect, import and export elements of the data and processing, as well as final, concluding data on the received results from and to any system via API or output those results into the convenient BASIS ID panels.

On top of that, BASIS ID has advanced data aggregation capabilities — the solution can integrate different data sources, such as local databases, state eIDs, clients’ own databases, etc. into the BASIS ID dashboards.
All related official documents are submitted digitally and run through BASIS ID’s next-generation software that pulls out relevant data and verifies it automatically against relevant databases and sanctions lists. For instance, BASIS ID can do ongoing checks and monitor documents’ validity, automatically inform customers about the results and request new valid documents from users if it is required. This is a truly innovative feature, that makes BASIS ID even more distinctively prominent in the field of data analysis and personal data verification.

Overall, it significantly eliminates the time, cost, and potential inaccuracies of the manual KYC process.

By automating the KYC process using BASIS ID management platform, financial entities and service providers can significantly reduce the costs and time taken for KYC and identity verification, as well as screening for digital and in-person onboarding procedure.

By using BASIS ID multi-layered cutting-edge identity verification architecture, financial entities and service providers can confidently be sure that customers are who they say they are, without having to wait days or spend thousands. Automatically highlighting PEPs and Sanctions hits, as well as autonomously verifying identity documents – BASIS ID’s next-generation technology helps service providers all over the world take care of KYC.
This relieves a huge burden from the AML framework.

BASIS ID offers several ways of integrating the KYC software solution into customer onboarding flow.

These customisable solutions for legal compliance and fraud prevention allow to satisfy the requirements of the regulatory authorities, provides company’s compliance team with powerful tools and perform smooth customer onboarding.

Coupled by the company’s core principle of charging for each separate data verification check per person instead of selling monstrous 40000+ minimum commitment verification bundles, it makes them really remarkable among many other KYC and AML service providers.

BASIS ID understands the price of the money invested into the customer acquisition and do their best to make every cent from their clients serve by bringing them new customers instead of creating unnecessary hurdles.

Companies who are forced to buy tens of thousands of verifications at once while being unable to use all of them throughout the contacted period constantly experience financial losses, which clearly leads to creating more unnecessary constrains in business processes related to AML and KYC verification.

BASIS ID’s solutions allows to optimise all related costs and either receive AML screening as a part of KYC procedure or integrate already existing solutions through API. It grants valuable capabilities to use CRM for visual monitoring of data processing and hence verification results. Therefore, those advanced data aggregation capabilities provide company’s compliance team with greater ease of managing data they are dealing with, all within one dashboard.

Bearing that in mind, BASIS ID’s concept of charging for each separate data verification per person make them very profitable and comfortable to work with. BASIS ID understands, that clients who slip away from verification mean lost profits and investments for the business.

In the case of an unsuccessful verification attempt, BASIS ID doesn’t reject the profile of the user, but instead sends her or him a request to upload or amend necessary information. And all of it functions perfectly without necessity of going through the whole process again for the user or any additional fees for the client.

“Do not save what is left after spending, but spend what is left after saving”
Warren Buffett

Conclusion

For most digitally-minded businesses, AML and KYC verification process and managing fraud risks is a delicate act of balancing between fraud detection, financial benefit and the customer’s digital experience. So-called bottlenecks are inevitable in this broad and complicated process.

Longer verification time, false positive results, extra verification costs and other frustrating constraints slow down companies’ developmental progress and put shadow on customer experience, which results primarily in company’s financial losses and running out of clientele.

Choosing right KYC software seems to be the main solution for reducing and eventually eliminating bottlenecks in AML and KYC verification process.

Although it is very understandable that some businesses are finding it difficult to proactively implement advanced authentication methods that will accurately identify their customers, it is the only way to break the constraints, to break through the bottlenecks.

BASIS ID has got it down to a fine art – providing identity verification services all across the globe with the quickest possible check and minimal integration time.

These approaches and highly balanced strategical methods include:
1 Automatic KYC/AML verification
Automatic document and biometric verification let the customer gain access to the service faster.

2 Transparency
CRM allows accessing the dataset and results of the processing at any given moment.

3 Fuzzy Matching
“Fuzzy matching» search capability allows to optimise the reduction of false-positives and in-line coverage with the risk-based approach.

4 Fast integration
Web and mobile-friendly widget along with API can be installed and integrated in a matter of seconds.

BASIS ID’s effective modus operandi helps a lot to save time, avoid clerical errors, decrease general business costs and as a result rise the efficiency of the client’s company or financial entity.

“Less stress — more fun — bigger profits”.
It is the way any ideal business should work, isn’t it?

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