In this episode in our Best Practice podcast series, Tom Andrews, PassFort's head of RevOps, talks with Greg Pierson, co-founder of iovation, now part of the consumer identity and data giant, TransUnion. They are a partner of PassFort's, fighting fraud and financial crime during customer due diligence processes.
A journey of digital transformation in KYC
TransUnion's principle objective is to make the internet a safer place to do business. This is a huge concern to banks who now simply have to offer customers a digital service. The challenges of KYC (Know Your Customer) and validating people are who they claim to be are ongoing, as are the issues presented by fraudsters.
In essence. the path to digital transformation of KYC is ongoing.
It's not a case of putting a tick in the box and saying KYC is done. Says Pierson.
KYC data network
Customer experiences in digital banking continue to get slicker and faster online, especially with the use of mobile devices. This goes for onboarding experiences too. Customers don't want to wait while compliance checks play out.
Also, criminals and fraudsters continue to evolve their tactics, becoming evermore sophisticated with near "perfect data".
You can assume bad actors know everything - they have perfect data - it's just crazy. Says Pierson.
Beyond this, regulations change all the time, which impacts the checks and validation processes banks need to carry out. It's a moving feast and institutions need to be prepared to change all the time.
Newer institutions might have had the ability (or luxury) of thinking about digital KYC as part of their compliance setup from day one. Older, more established institutions just have to retro-fit this into their tech eco-systems (digital KYC wasn't a thing when they were setting up in the 1800's).
Analyse behaviour to gain insight
In this podcast, Greg talks about the typical challenges banks face in their approaches to establishing digital KYC.
He also talks about the ongoing nature of digital transformation. One example being the need to measure processes. It's the old adage, if you can't measure it, you can't improve it. Pierson underlines the importance of being able to tell -
1) Where people drop off in the due diligence process
2) Why applications are failing if they are genuine
3) How to consolidate customer data effectively
Then improvement and efficiencies can be made.
You can access the podcast on demand and listen to all Greg has to say about the journey to resolving KYC challenges.
We hope you find it useful and please get in touch if you'd like to contribute to the conversation or discuss a solution.
More about the series
Each of our best practice sessions features a leader in financial services and compliance.
Our aim is to provide a practical resource to the financial services community, enabling professionals to share in developing and adopting digital-first strategies.
Speakers share past experiences and theories for the future. They talk about technology and how this changes customer experience, company focus and market positions.
Get in touch
If you would like to know more about the series, or if you would like to find previous podcasts, please get in touch - we would love to hear from you!