In 2024, financial institutions must deliver seamless customer experiences while meeting increasingly stringent regulatory requirements. Anti-Money Laundering (AML) and Know Your Customer (KYC) processes, which were once compliance-driven, now play a crucial role in customer onboarding and retention.

Speed and efficiency are becoming just as important as regulatory adherence, as consumers expect fast and frictionless interactions. Recent research provided by FullCircl highlights this shift, showing that slow verification processes are a major cause of customer dissatisfaction. Financial institutions are under growing pressure to balance compliance obligations with customer expectations for fast, user-friendly services.

In today’s digital-first environment, consumers expect rapid access to financial services. According to FullCircl’s findings, 70% of customers are unwilling to spend more than 10 minutes on the account-opening process. For financial institutions, this means traditional KYC methods—often seen as slow and cumbersome—are no longer viable.

Automation plays a vital role in meeting these expectations by expediting identity verification for low-risk customers. However, institutions must also be prepared for manual intervention where necessary, especially in cases that require enhanced due diligence (EDD). This hybrid approach ensures regulatory standards are met while keeping the customer journey smooth and efficient.

While automated systems are essential for handling routine verifications quickly, certain situations require deeper investigation. FullCircl’s research shows that 47% of consumers have undergone digital identity verification in the past two years. However, high-risk profiles—such as politically exposed persons (PEPs) or transactions flagged

for potential money laundering—often demand additional scrutiny that only manual processes can provide.

Enhanced due diligence ensures compliance by investigating red flags thoroughly, but it must be done without compromising customer satisfaction. Combining digital tools with expert-led manual reviews allows institutions to meet both compliance requirements and user expectations for fast service.

One emerging trend identified by FullCircl’s research is the growing demand for flexibility in how consumers verify their identities. 59% of surveyed consumers expressed a preference for choosing their verification method, whether through biometric checks, digital ID solutions, or manual document reviews.

Offering multiple verification options helps institutions cater to diverse customer needs and builds trust by making users feel more comfortable with the process. Flexibility is especially valuable for reducing friction during onboarding, leading to better customer satisfaction and retention.

Compliance is not a one-time task but an ongoing process. Perpetual KYC—where customer profiles are continuously monitored—enables financial institutions to respond quickly to changing risk levels. This proactive approach can detect suspicious behaviour early, helping prevent fraud and money laundering.

Automated alerts and ongoing compliance checks also reduce the need for repetitive identity verification, improving the customer experience. Institutions that implement perpetual KYC are better positioned to stay ahead of regulatory requirements while delivering a smoother journey for users.

Trust and transparency remain critical for financial institutions. FullCircl’s research shows that 70% of consumers still trust traditional financial institutions more than newer digital platforms, underscoring the importance of clear communication around security and compliance. Financial institutions that maintain transparency during onboarding and offer seamless, yet secure verification processes are more likely to build lasting relationships with their customers.

To meet regulatory requirements while improving the customer experience, financial institutions are turning to orchestration platforms that integrate KYC, AML, and identity verification tools. These platforms streamline compliance processes, reduce friction, and provide flexibility in verification methods.

By embedding advanced solutions such as those provided by FullCircl into broader financial offerings, orchestration platforms—like those developed by AAZZUR—help institutions maintain compliance without compromising speed or user satisfaction. This approach ensures that businesses can focus on growth while remaining confident that their compliance needs are fully addressed. If you’re interested in exploring how this can benefit your organisation, reach out to learn more.