Microfinance Company KYC Verification using RPA Services

While eKYC is something relatively new to India, we need to reconcile with the fact that its importance in the global scenario is only growing each day. 

According to a report by Report Crux,

“The Global e-KYC Market is estimated to grow...at a CAGR of 23.4% during the forecast period from 2020-2027.”

To keep pace with the ever-growing customer base, a large number of banks and microfinance companies in India are switching to RPA consulting services, especially to faster KYC processes. 

Why Is KYC Important?

KYC not only provides you with significant information about your customer but also safeguards your organization from various legal issues associated with customer frauds that happen, well, so very often.

The Role of Robotic Process Automation (RPA) in Know Your Customer (KYC)
There has been a constant rise in the demand for artificial intelligence in KYC in recent years to prevent non-compliance. But even when AI has been implemented, for mass, repetitive processes, there needs to be some support that standardizes and speeds up operations. For this reason, one needs to introduce RPA with the help of a seasoned RPA implementation partner.

In fact, a remarkable number of banks, microfinance companies, and other financial institutes are already using RPA to transform critical business processes.

RPA eliminates all kinds of human efforts which in turn helps you reduce failures, costs, and human errors and fraud possibilities associated with KYC. RPA consulting services like ours are helping microfinance businesses in India with:

Reducing non-compliance penalties
Extending their problem-solving potential
Boosting productivity
Increasing transactional efficiency
and more.

Challenges Associated with Microfinance KYC Verification

Data Quality and Inconsistencies
Inconsistency of data is the most recurring problem any microfinancing company encounters while trying to validate the KYC information. There are several distinct sources where the data of a company can be found, and sometimes the available information on file is confusing or out of date. 

Solution: Our RPA services offer easy access to government business registries. RPA holds the record from every legal entity that ever existed. It goes straight to the source of company data that is valuable in performing KYC verification for microfinance companies.

Laborious and Time-Consuming Onboarding Process
The traditional onboarding process is one of the most common challenges in corporate KYC. This labor-intensive, time-consuming, manual process can lead to frustrating delays for customers, causing them to leave the verification process midway.   

Solution: RPA-integrated KYC process helps monitor customer behaviour and manage the complexity of onboarding. It collates data from multiple sources and allows for in-depth KYC verification. It significantly minimizes the time spent examining the identity of your client and constantly protects your business from money laundering scams.

Increasing Costs of Compliance
Time is not the only aspect that can be saved through making automated KYC verification. According to a survey, large financial institutions with more than $100 billion in revenue, spent up to US$150 million a year in 2017 as KYC expenses. And it is expected to grow 10 % by the end of 2022 as regulations become more expansive, detailed, and stringent.

Solution:  Implementing RPA provides an opportunity to offset the cost of the onboarding process by limiting the amount of human input dedicated to KYC. By automating KYC, cost savings of around 30% can be achieved.

Human Error
No matter how well_tl-rained, humans are prone to commiting mistakes. And in the standardized KYC verification, these errors can have severe consequences. 

Solution: Our RPA consulting services help you eliminate the risk of human error and help you automate the KYC structure. Furthermore, RPA offers the additional benefit of saving a significant amount of time and money over a manual approach.

Continuous Customer Risk Monitoring
KYC challenges for microfinancing companies do not end following the onboarding process. The growing regulatory demands to monitor customer risk at different stages. Actively keeping track of a company’s KYC can be highly draining on resources.

Solution: Our service help you develop clear, auditable processes to manage the ongoing monitoring for KYC verification.

Final Thoughts
Within the past few years, multiple microfinancing companies in India have been seeking RPA consulting services for KYC verification. The simple reason behind this is that RPA provides an exceptional opportunity to reconceptualize the existing operating model for KYC verification and help you increase efficiency, customer excellence, and employee productivity. 

If you are a part of the microfinance industry and would like to simplify your KYC, we can help. Let's talk.