Technology has gotten smarter more rapidly than our comprehension could perceive (too convoluted) and it is still progressing exponentially. Traditional business processes are not the same as what we (was) considered say ten years back. The fusion of technology with present-day KYC processes have produced a product that is very much era and technology relevant.
As the global regulatory environment intensifies and clouts more scrutiny, (deserving more scrutiny) a compliance product worthy to battle the regulatory wall is required, where providers are eyeing every possible way to better their KYC product from (above) the other. Don’t believe it yet? check out Shufti Pro’s KYC compliance product and how they are creating a difference.
What is an API-based Solution:
An API or application-programming interface is modularised instructions to access a web-based software application or service tool. A solution that has its own API is considered to be more user-friendly, as it allows different digital solutions to embed (by embeddin) the API into their solution and enhance enhancing its functionality.
API-based KYC Products for Compliance:
Diligence is an important business requirement for any business running today, whether digital or physical. A core element of diligence requires the verification of an individual’s identity and thus these services are mostly digital. As businesses establish their digital footprints and conduct business activities online, including high profile transactions, businesses have a greater need to vet their customers who onboard on (board) their platforms, to not only secure themselves from a fraud’s (fraud) standpoint but also to fulfill their diligence requirements, arising from global AML/CTF regulations.
In order to facilitate this requirement, third party service providers are employed to fulfill the diligence obligations of the digital business. If KYC products exist (existed) without any APIs, it (they) would require internal code modification within the digital business from scratch, (no comma) every time the business had a requirement or any other organization wishing wished to implement a system for KYC.
Having an API-based KYC compliance product enables different businesses to basically integrate the self-containing KYC-solution of the provider with their existing platform, allowing the platform or digital business to gain benefit from the services of the provider with minimal effort, requiring only ‘integration’ support. Compare this to a complete overhaul and from-scratch modification within the code of digital business. At a software level, it allows a software-to-software handshake to enhance the missing capacity of the existing platform, through the service providers API-based solution. API’s see the best fit with SaaS-based solutions that are built once and then sought by multiple businesses in accordance with their use case and business needs.
In the identity verification scenario, an e-commerce platform uses identity verification before processing the transaction from the cart. The e-commerce platform does not verify directly, (but) rather utilizes an API of a service provider that they have integrated with, (in order to) to vet their customers.
Don’t Wait, Act Now
An API-based KYC solution is a way forward, as the modern digital environment with digital services requires quick and easy integrative services. These platforms need to fulfill their KYC obligations, in the absence of API-based KYC solution, (no comma) that seems very unlikely. Seek for providers that offer scalable API with minimal integration times. Check out Shufti pro’s KYC compliance product if you’re not convinced.