Leveraging biometrics to transform KYC
Matthew J. Ferreira · Journal of digital banking. · 2019
Know your customer (KYC) has long been perceived as a compliance burden for banks. It is a costly process that is equally frustrating for consumers, and the penalties for non-compliance can be severe. Regulation, however, is changing to enable banks to innovate in the way they undertake KYC. This paper discusses how the technology of biometrics can be utilised in KYC to reduce costs, drive business development and improve the experience for consumers while effectively mitigating money laundering risk. It further shows that KYC regulation should not be perceived as a compliance burden but rather as guiding the implementation of effective identity management solutions that form part of a bank’s overall business strategy and processes.