Cashwerkz CTO, Peter Whitfield, has been busy innovating and driving the future of Australia’s leading marketplace for cash investment with…
Written by Matt Kirk Published: June 12 2020 Innovation
The age is digital….
a world where our daily connections are predominantly online with the expectation they will be instantaneous, efficient, secure, connected and innovative.
With one exception – the traditional physical identity infrastructure or as the industry refers to it as Know-Your-Customer (KYC) procedures are lagging, disengaged and failing to keep pace with evolving technology and digital developments.
KYC refers to the customer identification and verification activities required to be performed by businesses within their customer on-boarding process to satisfy compliance regulatory standards – AML/CTF (1). For the financial services sector in particular these processes are mandatory to allow online accessibility and essential everyday transaction capabilities.
Across our economy however, the KYC and customer on-boarding experiences are individually business distinct, remain manual, repetitive and time-consuming creating natural friction and mistrust between all parties.
Adding to the frustration is the recurring process for each interaction. The current ineffectual maintenance of KYC records together with the continual monitoring of potential customer changes, requires each business to incorporate an ongoing know-your-customer program – does this reflect the digital age we are now in?
A New Identity Solution
The time has come for business stakeholders to investigate improvements for their KYC process to develop a more efficient, reliable and effective customer experience that results in a more dynamic and innovative process that is available to the investment community.
A common Identity Verification Management (IVM) solution is therefore essential. A functional service that accurately collects and verifies customer information with permission, allows relevant details to be shared across multiple channels at the client’s discretion to maintain ongoing supervision and compliance monitoring requirements.
Many financial institutions, driven by both client feedback and the emergence of innovative developments by FinTech companies, are openly discussing the need to strengthen and streamline their IVM. Their considerations are being viewed as an opportunity to both reduce costs and improve customer on-boarding and engagement. Further, collaboration with FinTech companies who continue to develop their leading-edge digitised solutions will allow them to enhance their business operations.
Trustworthy source, Digitally enabled
Recently Australia Post published their internal research into delivery of a core digital ID solution allowing for a single electronic verification with smart phone capabilities to release identity details of an individual customer per transaction basis (2).
Their investigations to date have identified the potential value of such a solution would save up to $11billion through the efficiency, trust and omnipresence capability. In addition, they have noted 3 key features – convenience, control and confidence – as foundation inclusions to enable this solution to become a usable, secure and widely accepted answer to a digital identity answer.
Australia Post, A frictionless future for identity management White Paper, December 2016
Cashwerkz as an online term deposit marketplace has embraced the opportunity to develop and enhance Identity Verification Management solutions.
The platform currently provides both an e-verification process together with the ability to upload certified identity documents via secure login established at registration. These credentials are protected within the investor’s online account and compliance monitored accordingly, thereby providing clients with peace of mind and convenience for their ongoing investment transactions. This streamlined identification solution provides a simple application procedure and allows for an efficient rollover and switching process at maturity.
Our partnered term deposit providers have accepted these IVM technology developments and the processing efficiencies this solution provides when receiving client applications, transacting funds and managing investments ongoing.
Cashwerkz are committed to sustained investment into evolving IVM solutions. We continue to collaborate across the investment community to create a united identification power base and greater access to the full potential of our digital age.
(2) Australia Post, A frictionless future for identity management White Paper, December 2016