As part of our contribution to the Know-Your-Customer (KYC) process over the years, Xfers was privileged to be part of the annual ASEAN Regulatory Summit 2018. The Summit was a key regulatory event where many industry bodies, banks, and financial institutions came together to discuss the risks and compliance challenges facing the financial institutions and explore innovative solutions to tackle them. The event let professionals talk about critical problems, share their experiences, and perhaps most importantly, to focus on managing future effects on Asian financial Markets.
Samson Leo, Co-Founder of Xfers, was invited to conduct a workshop to senior risks and compliance professionals on how Fintech startups are envisioning a solution to the complexity and costliness of the crucial KYC process.
KYC is a regulatory requirement for companies in the financial industry to know their customers. This is a three-step process where financial institutions are required to collect customer data, verify the data, and screen the customer across various databases. This is especially important to financial institutions by allowing them to be the face of customer’s data and prevent potentially dangerous and illegal activities that include tax evasion, money laundering, and even financing terrorism. Out of the three steps, only the screening process can be automated, thanks to Thomson Reuters World Check solution. The collection and verification of customer data remains largely a manual and duplicative process across all entities in the financial sector.
Samson explained that the current KYC process often results in a duplicated process where a single individual may be subject to KYC by 2 or more business entities for a single transaction. This results in inefficiencies in the financial industry such as higher costs, longer processing time, and poor user experience. The question arises: Can the industry cut costs and expenses in both time and money by hiring a customer who is an existing client of a collaboration partner? He proposed a collaborative arrangement within the current legal framework to reduce duplication and improve customer experience.
At the moment, in order to offer a secure and trustworthy payment solution to the clients, Xfers partnered with Thomson Reuters (TR) to collect customer personal data that enables them to carry out an onboarding process in an automated way. Samson further proposed that sharing KYC screening amongst Fintech organizations who are partnering with TR is set to be one of the first and most vital steps towards heightened and seamless financial security measures.
To set the initiative in motion, Xfers and Transwap are proud to lead the way to improve the KYC experience for both consumers and businesses by collaborating on a pilot project to showcase a working model where Fintech companies can streamline the KYC process.
Samson’s presentation during the Asean Regulatory Summit is also featured on Techinasia, more information can be found on : https://www.techinasia.com/explaining-kyc-fintech-startups