Know-Your-Customers (KYC) is a measure within Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) that a business takes to identify and verify its customers’ identities. KYC processes can be executed manually or with the help of technology.
With increasing trends in financial crimes and dynamic regulatory demands, businesses are shifting from manual KYC processes to automated ones.
Here’s is a brief comparison between manual KYC and automated KYC processes to know which approach is suitable for businesses:
| Point of Comparison | Manual KYC Process | Automated KYC Process |
| Resource | Resource-intensive | Resource-efficient |
| Accuracy | Prone to human errors | Reduces human error, providing higher accuracy |
| Risk Management | Increased Money Laundering (ML) and Financing of Terrorism (FT) risks | Improved ML/FT risk management |
| Customer Experience | Customer inconvenience | Enhanced customer experience |
| Scalability | Less scalable | Scales seamlessly |
This video provides a detailed analysis of the differences between these two approaches and reveals why automated KYC is a game-changer.
Check out RapidAML’s video on Manual KYC vs Automated KYC Processes and understand why automated KYC is the future of customer identification and verification!
