Innovative fintech company PayBy has launched a revolutionary AI-powered Know Your Customer (KYC; also termed Know Your Client) process in the UAE. A 100% paperless process, it takes just 30 seconds to complete, doing away with the need for extensive documents, in-person visits or video calls.
Financial institutions and businesses use KYC to assess customer risk in accordance with guidelines from the Central Bank of the UAE. KYC is also required to track financial information and activity for customers, employees, and other business clients as an anti-money laundering (AML) regulation.
For most businesses, KYC compliance can significantly impact customer experience of onboarding and making digital payments. With banks, for instance,it can take up to 10 working days to complete the KYC process once all documents have been submitted.
PayBy’seKYC replaces existing manual and cumbersome processes with a safe, contactless and convenient solution for businesses and customers. Driven by AI with a human interface for back-end support and verification, eKYC only requires the customer’s Emirates ID to be uploaded. The AI detects and locates faces within an image, and compares it to live users with excellent accuracy. Instructions to complete the process can be followed on screen via a live video.PayBy’seKYCcan be completed on any smartphone and is not restricted by hardware functionality – unlike facial recognition required to set up payment apps on certain mobile phones.
KPMG’s UAE Banking Perspectives Report 2020 notes that the rise of Open Banking also poses the challenge of fraud risk. Current fraud detection technologies have not kept pace with changing market conditions. There is a demand for additional identity and authentication technologies. PayBy’ssmart and efficient KYC solution could mitigate the risks posed by increased digitalization, such as online identity fraud and account takeovers, as well as enhance customer experience.
While customers benefit from a seamless onboarding experience, businesses – including banks – can save costs and reduce time spent on paper-based verification procedures, increasing profitability. For banks, an AI-powered KYC solution can be a competitive differentiator, enabling them to capture new customer segments and markets, such as the underbanked.
About 39% of the UAE’s adults are underbanked, and struggle with conventional KYC procedures. PayBy’s AI-powered verification process enables quick and easy authorization, removing barriers to digital payment for the underbanked. PayBy is also leveraging a strategic partnership with the UAE’s largest bank First Abu Dhabi Bank to ensure greater financial inclusion.PayBycan be used for e-commerce transactions, cashless payments, withdrawals and peer-to-peer transfers. PayBy leverages the UAE’s high rate of smartphone penetration (91%), to support the transition to a cashless society, in line with the UAE’s Vision 2021.