With the number of digital financial-services applications growing every year, regulators are pressuring banks to verify that their customers are who they say they are. In July 2016, the U.S. Financial Crimes Enforcement Network (FinCEN) implemented new rules around Customer Due Diligence for Financial Institutions under the Bank Secrecy Act; a year before, regulators in Europe passed the Fourth Anti-Money Laundering Directive. Both regulatory frameworks require banks to take steps to know their customers and report suspicious activity, generally related to potential money-laundering activities. With application programming interfaces, or APIs, these steps toward compliance become leaps.
1. Quick start-up
With thousands of APIs in the market, it’s likely that your onboarding software has options to integrate with APIs and get enhanced ID verification capabilities up and running quickly.
2. Efficiency
With quality data during onboarding, you can finalize accounts faster and save your customers from long waits.
3. Comprehensive
API technology allows you to integrate multiple data inputs, from different providers or homegrown systems, limiting the time required to use different systems.
4. Accuracy
With API technology, ID verification partners can cast a wide net for data from many sources, ensuring accurate information that serves your purposes.
5. Omnichannel
By using third-party data to confirm and prepopulate fields, account opening can be done through digital channels using modernized, streamlined forms.
6. Scalability
Cloud and software-as-a-service deployments mean that, as business grows, you won’t be left drowning in requirements for data. It also allows companies to continue to use the existing, familiar systems, reducing the learning curve for compliance professionals.
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