Importance of having a trustworthy KYC system - In-house vs Third Party Providers

You never get a second chance to make a great first impression and since onboarding a new client is your first main contact between your company and your new client, the experience should not be confusing or frustrating. The onboarding experience is often viewed as the foundation for what dealing with your company will be like, so having a trustworthy KYC system in place should be any organisations top priority.

Some organisations prefer to develop a system in-house as they believe they will be “in control of everything” however, it is not as simple as that. Choosing to go for a specialised software platform developed by a third party provider, will not only lower their risks but also improve security and actually cut costs.

Nowadays with the use of innovative technology, IT software development companies are easily keeping up with the latest trends and client requests for more automation. Putting together your own in-house software development team takes up a lot of time and effort and not to mention the increase in wage costs however, before development can event start, a lot of forethought and planning is required.

The organisation must research about which tools to use, and which would work best for the solution they want to achieve. Then these must either be developed from scratch or bought, and then integrated. Also, we must not forget about the supporting hardware required and after all this, there is still a risk that the solution will not perform well, and costs will just keep adding up.

Maintaining an end-to-end KYC system requires a lot of effort and human resources; constant testing needs to be done, software updates, bug fixes, support etc… It is not as simple as looking at what approach sounds best and going with it. You would also need to keep in mind how regulation changes affect you, the constant updating of policies; how easily would your compliance team be able to change company policies as new regulations are released? Would they need to depend on your in-house development team to update the system? This will cause delays and bottlenecks in your processes and not to mention inefficiency within your team.

Make the smart decision and choose an off the shelf KYC solution. Leave all the research and testing in their good hands. These systems are built specifically for the compliance function within organisations, the requirements of which were drafted by senior personnel within compliance functions, in various industries on the market, ensuring that all aspects are covered.