Patrick Kelly is Americas Head of Sales at Shufti Pro.
What are your clients’ pain points and how have they changed from 1 year ago?
Our clients have faced continuous pressure over the past year from rising inflation, economic uncertainty and dynamic regulatory requirements. Economic downturns often lead to an increase in fraud and financial crime, as we saw in the 2008 financial crisis – making identity verification and client onboarding even more critical. Between a potential recession, evolving compliance obligations around Know Your Customer (KYC)/ Anti Money Laundering (AML) systems and processes, and a host of new global sanctions, our financial services clients are facing more layers of complexity as they strive to remain secure and compliant while driving cost efficiencies
What trends are getting underway that people may not know about but will be important?
With cases of fraud and financial crime on the rise across the industry, identify verification (IDV) will be a key trend as financial institutions work to buttress their onboarding processes and ensure a new level of E- KYC, AML and KYB. While KYC has become a crowded space with several options and solutions, our customers tell us they do not feel the same about KYB. Look for financial institutions to push for a more in-depth, fully comprehensive and generally available KYB solution that can provide total coverage and up to date information to fill out the IDV stack and help firms remain compliant and secure in 2023.
What are your expectations for 2023?
2023 will see organizations harness automated identify verification (IDV) and KYC technology that can ensure compliance at scale and evolve with their business as it grows. Robinhood was fined $30M this year because its crypto unit experienced rapid growth and the compliance program could not perform at the volume required. This is just one example of regulators cracking down on crypto players that are not conducting the proper due diligence to know who their customers and investors really are. Regulators will likely continue enforcement of new regulations for the crypto industry in 2023 and for businesses who fail to adhere to regulations, the cost of noncompliance will be high.
