October 19, 2021

zzyiqiao

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Financial Institutions Need to Be Tech Companies Too

 

 

 

We live in an age where everything has to be now. Immediacy is everywhere. If a website does not load in a split second, we complain or look.Everything in our world has to work fast and flawlessly, or we simply will not use it.

 

The customer, knowing he or she is king, is impatient, judgemental and unforgiving. They expect a smooth and fast process in everything they do, and that includes being onboarded by financial institutions.

 

Financial institutions, and that includes the ever-growing world of regulated crypto exchanges, are required to perform a careful, meticulous KYC/AML process. 18 out of 20, or 90%, of the largest financial institutions in Europe have at some point received penalties for money laundering-related violations in the past decade.

 

The financial institutions are now having to get rid of lengthy onboarding processes and replace them with fully automated and fast Straight-Through-Processes which meet the ever-changing regulatory challenges of today and the future.

 

For today’s customer, only the smoothest, easiest, fastest and most user-friendly KYC/AML onboarding process will suffice.

 

Yotam Namir, founder of Tech View (https://techview.world/)said:

 

“A quick response to the customer increases his/her sense of partnership. You only have one chance to make a good first impression and the KYC/AML process in onboarding is essential to that”.

 

According to studies. 90% of bank customers will give up on an onboarding application if the process takes more than an hour to finish. Meanwhile, 12% will give up on an application after just five minutes. 40% will give up after 10 minutes, while 86% will abandon the application after 30 minutes.

 

An onboarding process with a smooth KYC/AML procedure indicates to the clients the kind of financial institution they are dealing with. Why should the client trust that the financial institution is fast to respond to market changes when the onboarding process is slow?

 

Financial institutions have to deal with the reality that they are no longer ‘just’ financial institutions, they are also mini-tech companies now. Standards have been set in the online world, and financial institutions have to adhere to them and embrace them.

 

For this to happen, financial institutions will have to be more tech savvy.