Why KYC & Onboarding Is Essential To Financial Service Providers & Their Customers?

Published at: October 6, 2020

Do you know what are the parameters that a customer usually uses to decide the experience with a new bank and insurance service provider? The answer is the onboarding process. To put it utterly, this process plays a vital role in setting the tone for the client’s overall experience with the bank or insurance service provider. Furthermore, in today’s time of important Know Your Customer or KYC norms, it is equally valuable to collect KYC data that will help for the ongoing maintenance and management of the account. Today, digital data banks like Aadhaar, NSDL, CKYC repositories, etc, and regulatory bodies make it compulsory for performing e-KYC via biometric authentication.

Significance of CRM For KYC and Onboarding For Financial Service Providers:

Different financial services providers, whether be it banking or be it insurance mandated responsibility to understand their customers and negotiate the risks they pose before offering services. When the prospective customers lack any kind of testimony, or when their identification is challenging to authenticate, it becomes tough for service providers to deliver the necessary Customer Due Diligence (CDD) on them. Then, this can appear in two restrictions on financial inclusion:

  • On the demand side: Lengthy or embarrassing onboarding systems can discourage potential customers from signing up for financial services, and
  • On the supply side: Expensive customer identification and due diligence systems can give low-income customers profitless, compelling the size of the viable market.

Effective and powerful CDD systems fix both these concerns. Here is where KYC and onboarding become the best solution to banks and insurance providers. Although more complicated to perform than conventional KYC, it encourages plenty of benefits in the long term like lesser man hours, cost reduction, developing the record-keeping system, and as a macro view, also advance financial inclusion.

Significance of CRM For KYC and Onboarding For Customer

KYC and onboarding of the customers come up with different aspects:

  • Require no paperwork or waiting time for accounts to be opened
  • No more queuing up at bank branches to submit paperwork
  • No wasting time and effort in multiple follow-ups and innumerable other processes that the customer had to undergo until some years ago.

Due to CRM for KYC and on-boarding, opening a bank account or applying for an insurance policy has become completely hassle. All it requires is just a few minutes and some basic details and you are all set to go.

Crochet Technologies:

If you are finding the CRM solutions for KYC and onboarding, Crochtech Technologies is what you need.  Crochtech Technologies is the silver partner of Pega and can help your business with the KYC or onboarding requirements. Crochet Technologies is a Global Information Technology (IT) Services and Solutions company that puts its hard efforts to streamline and automate your business processes.

To keep in touch, follow us on our LinkedIn page. For any business requirements reach us directly on

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