KYC Automation for Cross-Border Payments - Limits and Realities
Been thinking a lot about the push for greater automation in KYC/KYB for fintechs, especially those operating across multiple jurisdictions. On paper, it sounds like the holy grail – faster onboarding, reduced manual errors, scalable operations. But what are folks finding in practice when it comes to truly automating the more complex elements, particularly around enhanced due diligence (EDD) for higher-risk profiles or in jurisdictions with less standardized data? Are we hitting a wall where a certain percentage will always require human review, or are we seeing actual breakthroughs in AI/ML for pattern recognition that truly minimize human touchpoints without increasing regulatory risk? It feels like the vendors promise a lot, but the reality for operators might be more nuanced.
The 'holy grail' sentiment often seems to gloss over the practicalities of varying regulatory landscapes. While basic KYC might see some gains, EDD across multiple jurisdictions likely still requires a significant human touch, or at least highly customized rules engines that quickly become complex to maintain.