max’s “Chat Project” implemented to replace in-person customer identity verification
Change in KYC regulations allows video chat to replace in-person meetings and the benefits are substantial
If you were to ask any bank or consumer a year ago to describe the process of verifying customers’ identities, the answer would be a quick one – a nightmare. That’s because under “Know Your Customer” (KYC) regulations, banks and other financial institutions must meet with all customers in-person to verify their identity, and that’s only part of the process.
Fortunately, things are about to get easier. Thanks to technological advances, video chat can now replace in-person meetings under KYC regulations. Aside from being an exciting new feature, there are some substantial benefits to this change:
1. No Need to Meet In-Person: Customer and company save time, money, and energy.
2. Reduced Abandonment Rates: By eliminating the inconveniences of an in-person meeting, customers have less reason to give up a service.
3. Increased Customer Assistance: Financial institutions can utilize their video chat capabilities to provide a whole host of other services to their clients.
Considering all the benefits, it’s no wonder that many financial institution are jumping at the chance to take advantage of this change in regulation. max’s “Chat Project” is one such example.
Launched this past year, the Chat Project is an innovative digital and video chat onboarding process. Under this system, customers enter their relevant information and upload required documents on max’s digital platform. They are then sent an SMS message with a link directing them to a video chat call where they make a few declarations, take a quick photo with their ID, and then, whala! The entire identity verification process is completed in under 5 minutes.
And if you’re still skeptical about how beneficial the Chat Project really is – just take a look at the numbers. Within its first month of launch, only 2% of new merchant onboarding processes were done using video chat. A mere 2 months and over 30% of all new merchant onboarding processes were done using video chat. That’s a 28% jump in just 2 months!
Currently only used for merchant onboarding, max plans to implement video chat into many of its other daily procedures. Soon, video chat procedures will be benefitting customers in all of max’s service areas.
With the changed KYC regulation, financial companies are now engaging with customers in a manner that is easier, faster, and cheaper than ever before. Only time will tell how financial institutions will use technology to continue developing extraordinary solutions.