Businesses are looking for financial preventive measures to secure data processing and transaction record. Effective investor verification service is indispensable to verify investor onboarding. The customer experience determines the relationship between the investor and the financial institution. User-oriented know your investor solution provides potential onboarding investor services.
Financial Times reveals allegations of fraud & embezzlement on the Australian investors having 20% stakes. It illustrates the involvement of investors in financial scams like money laundering and terrorist financing. Financial businesses are in dire need to employ potent know-your-investor service mechanisms for regulatory compliance.
What is KYI?
KYI is the abbreviated form of Know Your Investor and it is about thorough verification of a customer’s investment sources, business PAN card, revenue details, tax details, etc. The rising financial growth and conversion to digital platforms require to verify investor to avoid financial grifters.
A journey from KYC to KYI
Financial institutions are heading to verify every customer being onboarded. The perpetual rise in financial crimes is affecting the business sector. There are still various financial industries where KYC compliance policies are ignored. The digital investor verification service ensures KYC (Know Your Customer) as it is the primary requirement for customer verification. Banking channels are more vigilant today than ever before because various customers have shifted to business accounts for investment purposes. Later on, illicit money transfer was revealed from local accounts to foreign accounts. The tech-driven investor verification solution can offer efficacious procedures to verify whether the customer onboarding has any business record, investment portfolio, or a simple customer account. To avoid fraudsters, customers should cooperate with online investor verification service providers.
Why is Investor Verification Online Mandatory for Financial Setup?
The Digital revolution is on the rise and financial firms are getting more digital investment opportunities through this way. Financial inclusion suits all business industries but fraudulent actions leave harmful consequences for the financial sector. It demoralizes the investors with hefty amounts to invest in the market. There is a huge number of investors who use fake identities to invest capital in the market which is detrimental to financial growth. The system requires electronic investor authentication for the verification of the investor onboarding. During the pandemic, the global financial market and supply chains faced disruption. The situation exposed several potential business gaps. That’s why customer investment should be verified before becoming part of the financial market.
Rise in Money Laundering at the dispensation of Financial fraud
Money laundering is a massively rising challenge for the global financial paradigm. Black money circulation is common nowadays but it leaves adverse effects on financial setup. Genuine investors show reluctance to invest money because of frequent scamming attempts. In Bulgaria, recently, a network of fraudulent investments was caught. The total scam was estimated to be about 10 million euros. The lack of know your investor service results in mega financial corruption, kickbacks, and money laundering incidents across the border. The business sector normally avails the credit card service but fake investors use forged identities to get credit card facilities over the fake display of assets. It paves the path for professional money launderers. Billions of dollars being illegally transferred to fake accounts is a sheer manifestation of consistent financial fraud. Global authorities demand every financial institution should opt for digital investor verification service compliance protocols to overcome the undesired financial situations.
AI-powered Investor Verification Service Solutions
Customer satisfaction and financial Return On Investment (ROI) go hand in hand in the financial sphere. Artificial intelligence is making things easy to know your investor in the most anticipated manner. AI algorithms are robust in processing the code to verify the authenticity of the investor by running a background check on them through thousands of sanctions and global watch lists. Thousands of AI models verify customer investment identity documents and transaction details. After processing, the results are extracted and stored in the backend and presented to the entity trying to verify the investor. Digital AI-powered solutions are worthy to control investment problems for financial equilibrium keeping fraudsters at bay.
Digital dynamics are swiftly changing and the investment market is facing several challenges due to rapid online integration. Global regulatory authorities are taking strict actions against financial industries providing space to financial swindlers. The investment industry is also expanding but the lack of investor verification service compliance procedures is badly impacting the global market. The global financial structure demands serious amendments which are compatible with the system in order to authenticate investors. The employment of optimal digital solutions can help to reduce investor-based fraud.