Neobanks have become the new face of modern banking, as it does not require paper forms and branch visits. Trust and compliance are paramount for neobanks to operate in the UK. As the UK has strict regulations against money laundering, terrorist financing, tax evasion, and illegal activities, it is essential to have a robust identity verification system that helps in authenticating the identity of the customer during the onboarding process of neobanks. And this is the area where KYC companies in the UK assist in keeping neobanks safe, compliant, and fraud-free.
The Rise of Neobanks in the UK:
London is the place for the most innovative fintech startups and neobanks in the world. From personal banking to SME financing, digital banks are redefining how people interact with money transactions. Neobanks are tech‐driven, agile, and customer-centric, assisting in quick money transactions and providing hassle-free financial services for personal and professional needs. Neobanks can’t afford a slow identity verification process that frustrates users during onboarding. KYC Companies in the UK offer KYC as a service to onboard customers quickly.
Why is KYC Non-Negotiable for Neobanks?
KYC verification is not only for ensuring compliance needs, but it is also a defence system against fraud and financial crime, as the traditional KYC method is a time-consuming process which requires paperwork and physical presence. Digital KYC process assists in conducting KYC checks digitally, in which customers upload an ID document, take a selfie, and within seconds, their identity is verified using facial recognition and document authentication technology. This KYC process ensures the person creating the account is real and not a fraudster who uses synthetic ID documents for account creation.
Digital KYC checks assist neobanks in meeting the UK’s regulatory compliance, including:
- The Financial Conduct Authority (FCA) compliance
- The Money Laundering, Terrorist Financing and Transfer of Funds Regulations 2017 (MLR 2017)
- AML directives from the European Union
Failing to comply with regulations can lead to legal consequences and may result in the cancellation of the licence. For neobanks, KYC verification is non-negotiable and KYC companies in the UK play a vital role in effective KYC checks.
How KYC Companies Build Digital Trust?
Digital trust is the foundation of successful neobanks, and KYC companies play a huge role in building that trust by ensuring genuine customers and fraud-free business transactions. Customers also deposit their money, apply for credit, and share personal data only when they trust the neobank platform. Digital KYC procedure ensures that neobanks are following regulatory standards, which represent a responsible neobank reputation in the market and build trust for customers for secure payment processing.
KYC companies help build this trust by ensuring:
- Every customer is who they claim to be.
- Customer data is processed in an encrypted format through secure socket layers.
- Transactions are continuously monitored.
- Secure transactions
Real-Time KYC: The Game Changer for Neobanks
KYC companies in the UK help with real-time KYC by providing video KYC solutions. Using AI and machine learning algorithm-based video KYC, neobanks can authenticate the identity of the customer on a live video call, which mitigates the risk of identity fraud completely. Real-time identity verification assists neobanks in the UK to verify their customer quickly and enhance the customer onboarding process. Video KYC solution also allows instant account creation for neobanks and secure business transactions. Video KYC verification is really a game-changer for neobanks.
Secure Neobank Business By Adopting Advanced KYC Solutions:
Advanced technology-based KYC solutions are significant to identify and verify the identity of the customer during the onboarding process for neobanks in the UK. It plays a major role in building customer trust and secure payment processing. KYC solutions are not limited to ensuring UK compliance; it is actually a fraud prevention method that assists in identifying fraudsters who commonly use synthetic identities to commit financial crimes in the financial sector. They target financial and non-financial businesses that have a weak identity verification system and can bypass their security checks. By implementing advanced KYC solutions, build a robust security system for neobanks that does not allow access to sensitive data to illegitimate identities.
Numerous KYC companies are available in the UK market that provide a KYC API for quick authentication and ensure KYC compliance with the FCA. Choose the reliable and trusted KYC service provider that has advanced technology-based identity verification solutions. Advanced technology always assists in combating money laundering and advanced financial threats in the digital operation era. Neobank is a totally digital operations-based business that doesn’t even have a physical branch to build customer trust. An advanced identity verification system is the only way for a neobank to build customer loyalty, ensure UK regulations, a frictionless customer onboarding process, effective operations and secure business transactions. It keeps ahead of the curve in the competitive market of the UK and is a reliable choice for payment transfer for personal and professional use.