Personal finance is one of the more intimate financial tools that connect businesses with their customers and personal finance KYC checks demand a huge amount of trust. The business needs to be able to trust that the customer is not only capable of paying back the money borrowed, but intends to do so.
It’s a rare relationship where the customer approaches the business with the sole intention of receiving money via credit to achieve a life goal.
But before any of that can happen you need to get to know your customer properly. Fraudsters see personal finance companies as a perfect target, all they need is to slip past your KYC defences to gain access to your products and leverage the most money for themselves before vanishing.
We have a few tips on how you can exclude fraudsters without frustrating your customers when conducting personal finance KYC checks.
Make it easy for legitimate customers
Your genuine customers should have an easy time when onboarding through your customer journey and it should be an impossible task for bad actors. That’s easier said than done.
But this can be encouraged by creating an easy-to-understand customer journey. By creating a clear digital process that guides customers through each step they can rest assured that their data is always being processed for a specific reason.
Taking multiple data points from an individual is also a good way to weed out the criminals who want to access your credit products. It also paints a clearer picture of who your customer really is, which is great for reasons beyond personal finance KYC checks as you can create a deeper relationship with your customer with more personalised products.
Know who you’re dealing with
Criminals often use stolen or synthetic identities to dupe compliance teams and evade detection. One way around this is to approach customers from a holistic perspective, rather than focusing on a tick box approach to compliance.
Any enterprising criminal can fake an identity document, but they would find it far more difficult to fake an identity profile. By combining elements of social media, address proofing, facial biometrics, and social media presence you compel the person onboarding to prove that they’re a real person with a defined history. This is easy for anyone legitimate to do but far more difficult for a criminal to fake.
Check pay out details
Account takeover is another threat to personal finance companies. The last thing you want is for your credit product to end up with someone who has managed to intercept a customer’s login details.
Using the card check system from HooYu you can request a check of the customer’s debit card and double-check their account details match the ones that you have on record for them. This also has the benefit of working as a continuous KYC check and shows that your company looks after the customer at all stages of the cash flow journey as well as the customer journey itself.
Personal finance KYC checks you can customise at will
At HooYu, we believe our clients want to focus on their core business rather than developing and maintaining onboarding journeys. That’s why we provide a low-code-no-code mobile-centric journey that has been tested on millions of users, saving our clients valuable resources and optimising the onboarding process.
As part of the low-code-no-code process, you’re able to integrate HooYu at whatever point you like. Doing this means you’re able to arrange a KYC customer onboarding journey that works for your businesses and primarily for your customers.
You can see how HooYu works to create the journey that’s right for your customers by watching the video below.
