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How to combine KYC compliance and user experience (UX) in customer onboarding?

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What is user experience (UX)?

User experience(UX) is a concept that refers to the emotions, perceptions and behaviors of a user when interacting with a product or service.

Definition of UX

UX is a multi-disciplinary field that encompasses many aspects such as psychology, design, ergonomics and technology. The aim of UX is to create products and services that meet users’ needs and expectations, while offering them a pleasant, intuitive experience. In the context of customer onboarding, UX aims to facilitate the registration process by proposing a clear, simple and efficient interface. The aim is to minimize friction and obstacles that might discourage customers from finalizing their registration.

User Experience (UX)

The basic principles of UX

The basic principles of UX are numerous and vary according to context and objectives. However, certain principles are universal and can be applied to KYC onboarding:

  • Simplicity: the interface must be simple and intuitive to avoid any confusion or frustration for the customer.
  • Consistency: the interface must be consistent in its presentation and organization, to make it easier to understand and remember elements.
  • Clarity: indications must be presented clearly and concisely to avoid any confusion or misunderstanding.
  • Accessibility: the interface must be accessible to all users, including those with specific needs (disability, foreign language, etc.).
  • Personalization: the interface must enable personalization according to the preferences and needs of each user.

How do you measure UX?

Measuring UX is a complex process, requiring the use of several tools and methods. Here are some of the most common methods:

  • User testing: users are invited to test the interface and give their opinion on what they have experienced.
  • Satisfaction surveys: surveys are carried out among users to assess their satisfaction and gather their comments.
  • Data analysis: thanks to heatmap tools, data is collected on visitor navigation on your website to identify areas of interest and friction points.
  • Individual interviews: interviews are conducted with users to understand their behavior and expectations.

Why are KYC processes for customer onboarding so complicated?

KYC (Know Your Customer) procedures are often perceived as complex and tedious. To understand why, it’s important to look at the different stages of KYC, and the regulatory constraints that need to be taken into account.

The 4 stages of the KYC process

KYC is the process of verifying a customer’s identity and legitimacy, either remotely or face-to-face, before granting access to a financial product or service. The steps involved in KYC may vary according to local regulations, the individual (corporate or individual) and each company’s internal policies. In France, to open a remote bank account for example, they generally include the following elements:

  1. Collecting information: customers are asked to provide personal information such as name, address, date of birth, e-mail address, etc. via a form.
  2. Verification of identity: the customer must provide supporting documents such as identity card, passport or driving license + proof of address < 3 months.
  3. Verification of legitimacy: customers must provide proof of their sources of income and professional activities.
  4. Risk assessment: the professional establishment must then check all the evidence and personal information received in order to assess the level of risk associated with the customer. To achieve this, financial institutions generally use AI-based technologies to automate and facilitate the verification process, such as Facematch (photo, video or PVID) from Netheos. This last step is designed to prove that the person is who they say they are.

These steps may seem straightforward, but they can quickly become complex and time-consuming, depending on the regulatory obligations that companies, and financial institutions in particular, have to comply with.

Regulatory constraints to be taken into account

KYC processes are also subject to strict regulatory constraints. KYC regulations vary from country to country and from sector to sector, but they all aim to combat money laundering, the financing of terrorism (LCB-FT), identity fraud and document fraud. Banking sector institutions, for example, must use KYC solutions that comply with at least 2 of the 6 complementary measures of the 5th LCB-FT directive when opening a bank account for a new customer.

These obligations will require them to collect a copy of the prospect’s identity documents (ID card, passport, residence permit, etc.), and to use an ANSSI-certified solution capable of proving that they are who they claim to be, at a distance and in a manner equivalent to face-to-face contact. To achieve this, banks will be able to use a PVID service or Qualified Electronic Signature (QES). Unfortunately, the use of such solutions can lead to longer enrolment times and additional requirements for customers, sometimes prompting them to discontinue their subscription early.

Why should your company optimize the UX of its KYC onboarding?

Optimizing the UX of a KYC procedure is a key issue for companies wishing to offer their customers a high-quality remote user experience while complying with regulatory constraints. Here are some of the advantages of an optimized KYC path:

  • Better conversion: an optimized KYC pathway reduces the friction and obstacles that can discourage your customers from finalizing their registration. This makes it easier for them to follow through to the end of the process, enabling you to better convert them.
  • Improved customer satisfaction: optimized KYC onboarding streamlines the KYC process, making it more pleasant and intuitive. This boosts customer satisfaction and long-term loyalty.
  • Save time and increase efficiency: an optimized relationship reduces the time needed to complete the underwriting process.

Best practice guide for reconciling KYC and UX onboarding

Customer onboarding is a crucial stage in the relationship between a customer and a company. This is the moment when the customer decides to commit to the company and entrust it with their personal data. In this context, KYC (Know Your Customer) compliance is a legal requirement aimed at preventing fraud, money laundering and the financing of terrorism (LCB-FT). However, KYC compliance can sometimes be perceived as an obstacle to UX. We’re going to show you the best practices for reconciling KYC and UX onboarding.

8 tips for creating a smooth onboarding process tailored to KYC requirements?

Here are a few tips for optimizing your customer onboarding process while complying with KYC regulations:

  1. Opt for a solution tailored to your needs and the legislation that applies to you: for example, there’s no point in choosing the strict PVID procedure if ANSSI doesn’t require you to do so. A simple photo Facematch could largely suffice.
  2. Identify the KYC data you need to collect from your customers, in line with current regulations.
  3. Simplify the registration process: depending on the information required, propose short, simple forms to avoid discouraging customers.
  4. Propose a simple and intuitive interface (UI) to facilitate the registration process: clarify your steps with a short explanatory text or a clear animation, avoid multiplying steps if they can be completed in fewer clicks, avoid long or compact texts.
  5. Choose a solution that provides real-time feedback on the changes a user needs to make in order to move on to the next stage of identification in the event of failure.
  6. Offer users a wide choice of identity documents (ID card, passport, residence permit, etc.): depending on which ones they have, the more options they have to identify themselves, the faster they’ll be able to complete the process.
  7. Keep the customer informed about the next steps and processing times, to avoid confusion and frustration.
  8. Make your services available 24 hours a day: your customers will no longer have to visit a branch or wait for opening hours to subscribe to one of your services.

How can technology improve the UX of your KYC onboarding?

Technology can play a key role in improving the UX of your KYC onboarding. Here are a few examples:

  • Automation: to simplify the registration process and reduce processing times.
  • Facematch and AI: facial recognition solutions enable fast, easy identity verification with a high success rate
  • Chatbot: use chatbots to answer web users’ questions and offer them personalized assistance.
  • Responsive: offer a version that adapts to different screens, so that those who wish to do so can register from their computer as well as their smartphone or tablet. You can also offer a mobile version by creating dedicated applications.
Optimiser l'onboarding client avec une navigation responsive

Optimizing customer onboarding: tips and use cases

How can you increase the conversion rate of your customer onboarding?

Customer onboarding is an essential step for companies wishing to build customer loyalty. It’s the first impression you give them, so managing it well is vital. In this article, we’ll look at how you can
increase your lead conversion rate
to offer them a more satisfying experience. We’ll be discussing the importance of UX, implementing personalized marketing strategies, integrating cutting-edge technologies and creating quality content.

Banks: how can you simplify your KYC process?

Are you a bank looking to simplify your KYC onboarding process? Implementing a digital solution can help you reduce costs and improve UX.

KYC is a complex and time-consuming process, requiring a great deal of time and effort to collect and verify customer identity information, whether in person or online. Banks must comply with current KYC standards and process their data securely. This is where technology can play an important role. It enables them to automate the KYC onboarding process, making it more efficient and secure.

The use of digital tools can therefore greatly improve the process of banking establishments, making it simpler and faster while helping them to lower their costs. But how do you go about setting up such procedures?

Customer onboarding: how to reconcile UX and regulatory KYC?