Onboarding Friction vs. AML Rigor

Been thinking a lot lately about the balance we're all trying to strike between a smooth onboarding process and robust AML/KYC protocols. It's a constant tension, isn't it? On one hand, you want to make it as easy as possible for legitimate users to get through the door, especially in a competitive market. Every extra step or document request can lead to drop-off. On the other, the regulatory landscape isn't getting any softer, and the costs of a compliance failure can be astronomical.

Are firms generally finding more sophisticated ways to screen effectively without adding significant friction, or is it still largely a trade-off where you pick your poison? We've experimented with various IDV solutions, but sometimes it feels like we're just shifting the burden around rather than truly optimizing both sides of the equation. Curious to hear how others in the space are managing this, especially with an eye on the evolving definition of 'reasonable' due diligence.