KYC the key challenge for fintechs: TDCX report
February 14 2023 - 9:00PM
Business Wire
Opportunity to enhance data analytics
capabilities to improve the KYC process
Almost one in two (49 per cent) fintechs have identified KYC or
Know-Your-Customer checks as their top challenge, according to the
Rethinking Fintech Customer Experiences report. The report was
launched by TDCX, (NYSE: TDCX), an award-winning digital customer
experience (CX) solutions provider for technology and blue-chip
companies.
The KYC challenge affects even the most established fintechs,
with nearly four in 10 (37 per cent) mature fintechs echoing the
sentiment. This could be due to the lack of a uniform global KYC
standard and increased financial crime compliance requirements in
global sanctions.
For example, TDCX observed that the KYC process is hampered when
documents such as identity cards are not shared in a consistent
manner (photo vs scanned, colored vs greyscale), resulting in
back-and-forth correspondence which sets a poor tone for building
good customer relationships. In a similar vein, underinvestment in
technology continues to hinder the onboarding of new customers.
Other key challenges for fintech leaders that were mentioned in the
report were the need to maintain sufficient operating hours, a
worldwide client base and the availability of quality, responsive
services.
Fintechs with a business-to-consumer focus found it more
challenging to manage KYC (55 per cent). This was consistent with
findings from a separate survey1 that more consumers abandoned
financial service applications due to lengthy forms and excessive
personal data requests. While it is compulsory for fintechs to
collect customer information, complex onboarding processes can
deter potential customers.
Mr Ricart Valvekens, Chief Client Solutions Officer, TDCX, said,
“KYC has become a key focus for fintech companies. Not only is KYC
essential for regulatory compliance, it is an unavoidable part of
the customer onboarding process which will either lead to a
seamless customer experience or a highly frustrating one.
“With the amount of required information for due diligence
increasing exponentially over the past few years, fintechs are
looking for ways to balance the need to provide their customers
with speed and convenience while remaining compliant.”
Data analytics an area of opportunity
The report also found that only 21 per cent of fintechs use data
analytics to support their KYC processes and 35 per cent of them
outsource their KYC processes. Fintechs were most focused on using
data analytics for personalized marketing (55 per cent) and helping
customers make financial decisions (40 per cent).
Mr Valvekens said, “While it is unsurprising that fintechs are
dedicating more resources to revenue generating activities, it
would be beneficial in the long run to leverage data analytics to
enhance their KYC processes. We have also observed that more
clients are looking for ways to drive business performance through
transformative CX solutions. To that end, we recently launched our
digital CX Center of Excellence to provide greater support to our
clients. One of our goals is developing best practices in data
science and analytics to help businesses enhance cost
efficiency.”
One of the companies that has tapped TDCX for its KYC needs is a
global payment gateway provider. TDCX supports the company in
hiring the right talent with the requisite skills to conduct KYC
checks and enhanced customer reviews. With TDCX’s support, the
company has been able to complete its KYC processes more quickly,
translating to a 20 per cent increase in productivity.
The TDCX Rethinking Fintech Customer Experiences report aims to
understand the latest fintech strategies and challenges regarding
customer experience. TDCX surveyed 200 senior fintech executives
globally from September to October 2022. The report is available
for download here.
About TDCX INC.
Singapore-headquartered TDCX provides transformative digital CX
solutions, enabling world-leading and disruptive brands to acquire
new customers, to build customer loyalty and to protect their
online communities.
TDCX helps clients achieve their customer experience aspirations
by harnessing technology, human intelligence and its global
footprint. It serves clients in fintech, gaming, technology, home
sharing and travel, digital advertising and social media, streaming
and e-commerce. TDCX’s expertise and strong footprint in Asia has
made it a trusted partner for clients, particularly high-growth,
new economy companies, looking to tap the region’s growth
potential.
TDCX’s commitment to delivering positive outcomes for our
clients extends to its role as a responsible corporate citizen. Its
Corporate Social Responsibility program focuses on positively
transforming the lives of its people, its communities and the
environment.
TDCX employs more than 17,400 employees across 27 campuses
globally, specifically Singapore, Malaysia, Thailand, Philippines,
Mainland China, Hong Kong, South Korea, Japan, India, Romania,
Spain, Colombia and Türkiye. For more information, please visit
www.tdcx.com.
________________________ 1 Source: The Battle to Onboard;
https://btob.signicat.com/battle-to-onboard/onboarding-gone-wrong
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For enquiries, please contact: Eunice Seow
eunice.seow@tdcx.com
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