APIs for KYC

An integral aspect of operating a financial institution is following various compliance measures to prevent fraud, corruption and other nefarious actions.

One of the most prominent measures is the Anti-Money Laundering (AML) requirements, which calls for banks, lenders and other financial companies to develop refined due diligence activities and prevent, detect and mitigate suspicious transactions. 

Another is the ‘Know Your Customer’ (KYC) standards; a set of mandatory measures that adequately verify a new and existing client’s identity whenever they open and utilise their accounts.

Manually conducting these tasks can be time-consuming and costly, so countless firms instead now rely on a sophisticated, easy-to-use AML & KYC API as part of the Nexis® Data+.

What is a KYC API? 

In previous years, organisations providing financial services would have to conduct a series of sequential steps to authenticate their clients’ identities to avoid inadvertently facilitating fraud or money laundering. Whether a dedicated individual or an entire team tasked with this process, it consisted of countless hours of work, not only eroding wider profit margins but also delaying service to their clients. 

Fortunately, great strides have been made to remove the necessity for manual input, and, instead, automate and accelerate this process with an advanced KYC API. These tools can integrate with a range of internal and third-party platforms, ensuring compliance but in a faster, more cost-effective manner.

For example, a KYC verification API can easily perform background screening processes without requiring manual data entry or the submission of paperwork. Instead, new and existing clients can simply provide basic details like their name, date of birth, gender, address, and mobile phone number, alongside other points of photo identification, such as passports and driver's licences, through an online tool. 

Why Should You Use a KYC API? 

Financial companies, such as banks or lenders, can use the Nexis® Data+ KYC API to fulfil their compliance requirements and improve other areas of their operations, such as:

• Removes the Human Element: An AML & KYC API either removes or minimises the degree of human involvement required throughout the verification process.
• Eliminates Manual Errors: By removing human intervention within the various verification stages, a KYC & AML API will also eliminate the risk of clerical errors and duplication.
• Delivers Real-Time Data & Insights: By utilising integrations with a myriad of different platforms, applications and systems, a KYC API can not only assist in verification, but also provide additional insights around credit scores, risk analysis, emerging trends and more.
• Greater Financial Savings: Financial service providers can save a great deal of time and resources spent on labour costs and verification support.
• Frictionless Client Onboarding: A KYC verification API removes the need for drawn-out, time-consuming authentication processes, and instead promotes a seamless onboarding for new clients.
• Higher Client Retention & Advocacy: Clients will also prefer a smoother experience, making them more likely to continue offering their business and advocate for others to do the same. 

How to KYC With a KYC API 

A common necessity when operating within the financial services sector is an assortment of different systems, applications and platforms. Each is typically unconnected, running as software-as-a-service (SaaS) or developed in-house, meaning fragments of data surrounding clients are being separately collected and inputted, possibly multiple times over. 

A KYC AML API from Nexis® Data+ changes that by offering a singular dashboard. Rather than a smattering of customer data living away in distant corners of siloed programs, your API can establish a connection between these systems to share that data and make it available for access in a simple, efficient method. Banks and other financial service providers often utilise a customer relationship management (CRM) or client lifecycle management (CLM) system; sending information from as many services or connections as possible to these systems can greatly improve the KYC of your firm. 

Factors to Consider When Choosing a KYC API 

A KYC API needs to offer a range of powerful capabilities to meet your compliance requirements, including: 

Flexible data formats

Business owners need an API that operates within the structure of internal & third-party databases. An API should also provide real-time updates, so you can rapidly view changes in customer information and take action accordingly. Additionally, check if the API supports all required data fields for KYC validation.

Ease of integration

Proper integration ensures your systems connect seamlessly with any third-party applications. When reviewing available KYC APIs, ensure they hold comprehensive support documentation and technical support, so you can quickly get the help you need to integrate the API with your system successfully.

Cost

Select a KYC API that fits your budget and has a pricing structure allowing for cost-effective implementation of its services. It's also important to ensure any additional costs, such as charges for access to real-time updates or data exports, are clearly laid out.

Ease of use

The main purpose of a KYC AML API is to streamline the process of integrating customer information into your system & performing validation. Look for an API that makes it easy for anyone on your team to use, regardless of technical expertise or familiarity with APIs in general. 

Nexis® Data+ KYC API

Nexis® Data+ offers data management services to better connect your organisation with pertinent data gathered internally and from various online resources. Utilising bulk & restful data APIs related to KYC & AML verification processes, we can help to streamline your operations, eliminate manual input errors, improve client onboarding, improve financial savings, and much more. 

Implement a KYC API into your financial services firm by contacting us at LexisNexis® today.