Crypto exchanges and other crypto service providers have introduced security measures to steer clear of hacking attacks and have improved user experience to attract non-tech-savvy users. However, neglecting the experience of Know Your Customer (KYC) practices can undermine other improvements, consequently negatively impacting crypto adoption.
Imagine a situation where you want to join a crypto service, but it has unnecessary barriers with a tedious, convoluted sign-up and KYC process. This is a loss of time for yourself and a potentially lost client for the company.
Still, centralized crypto companies can’t simply give up KYC systems since this is required by financial watchdogs in most jurisdictions. KYC verification is required to help with the prevention of ID fraud, money laundering, and financial crimes. By implementing KYC practices, crypto services invest in their long-term stability and provide users with better security by keeping up with regulatory demands.
The hidden cost of traditional KYC: User drop-off and lost opportunities
Traditional KYC systems often come with challenges, such as the complexity and time-consuming nature of their sign-up flows. Users who are eager to engage with a crypto platform may encounter multiple verification steps, including submitting multiple documents or answering detailed questions. This can be daunting, often turning enthusiasm into frustration.
Many crypto businesses implement KYC by relying on a fragmented approach, implementing different KYC processes using separate tools and resources, including human compliance teams. This fragmented approach causes the full KYC verification for a single user to take much longer. What’s more, this process takes a lot of time and resources from the companies who usually build the KYC flow in-house by stitching together multiple solutions and suppliers to be fully compliant in the jurisdictions where they operate. This means projects must set up contracts and integrate, test, and maintain multiple KYC solutions in each target market.
The fact that users may not like the KYC process isn’t just a matter of inconvenience. For crypto services, it can translate into a tangible loss, although it is hardly recognized since it’s more difficult to quantify lost opportunities.
Indeed, every potential user discouraged by an unnecessarily meticulous KYC procedure is a missed opportunity. Cumulatively, these missed opportunities can equate to significant revenue losses. In an industry as competitive as crypto, companies cannot accept losing customers due to outdated and inefficient KYC practices.
Many of the fastest-growing crypto projects are investing in better solutions to solve compliance and conversion at scale in order to solve this issue. Checkin.com, which aims to improve the entire KYC journey, addresses all traditional pain points while ensuring businesses remain compliant and users stay engaged.
The future of user onboarding is here
Checkin.com offers an end-to-end KYC/signup software tool that leverages artificial intelligence (AI), biometry, and smart modules to provide the best KYC experience and make the process smoother.
The platform is aimed at multiple industries, including cryptocurrency, and is already incorporated by global brands like Ryanair and Admirals. Since most crypto exchanges are global and seek to stay compliant in multiple jurisdictions, Checkin.com has put a specific focus on this. The platform’s framework is capable of handling KYC and compliant onboarding across 223+ countries and territories, using AI-driven localization and encrypted and restricted data processing for the European Union and other regions. Importantly, this allows Checkin.com to offer services that adhere to stricter regulations in some jurisdictions where financial products need to ensure that data is specifically processed within certain geographical boundaries.
The financial and crypto industry is increasingly regulated, but Checkin.com is constantly updating to comply with the rules in all jurisdictions, helping crypto services implement a nuanced approach for each region and integrate local behaviors and preferences.
Equipped with technologies like optical character recognition and machine learning, the system is able to securely process more than 14,000 document types in a matter of seconds. When paired with biometry and face matching, the onboarding process becomes faster, easier, and more secure compared to legacy solutions. What’s more, it can guide clients through the verification process in more than 80 languages.
In the crypto space, where security is paramount, Checkin.com offers a flexible and secure solution for integrating crypto payments and managing user data. With Checkin.com’s API, JS, or SDK integration, developers can easily integrate crypto payments into their existing platforms. This flexibility gives businesses the freedom to choose the best integration method for their needs.
Checkin.com also takes data security seriously. All personal data is stored on secure servers in the EU, compliant with ISO 27001 and GDPR. Additionally, all data is encrypted so that only authorized personnel can access it. This gives crypto-natives peace of mind, knowing their data is safe and protected.
Real-world impact: How seamless KYC onboarding spurs growth
Using machine learning and AI combined with innovative UX modules streamlines KYC, leading to an 18% conversion increase on average. The solution can cut the KYC verification time by a staggering 90%, which can be a major factor in standing out from competitors.
Source: Checkin.com
Crypto platforms can offer a seamless onboarding experience without compromising their brand, as Checkin.com does all the work behind the scenes.
One of the financial companies that successfully implemented Checkin.com’s solution is Admirals, which operates an online trading application that supports crypto-related instruments. The company registers over 30,000 a month from more than 130 countries. Previously, its KYC process took days. This time has been reduced to only 6 minutes with Checkin.com.
Source: Checkin.com
Why better KYC systems are good for users
Imagine if you’re a crypto trader and you find out that a crypto platform has safely reduced the KYC verification time to only a few minutes – you would be tempted to join, wouldn’t you?
Improving the KYC process does not only benefit the business side of the equation. With Checkin.com’s AI-powered solution, users benefit from much faster KYC procedures. Additionally, artificial intelligence allows for more accurate screenings, increasing the safety and security of all users who pass the checks. Better KYC systems can help to prevent fraud and money laundering, making crypto platforms safer for all users.
What’s more, thanks to Checkin.com’s encryption standards, users can easily sign up for numerous crypto platforms and pass the KYC checks without fearing for their data. By having robust data-protection practices, this KYC solution not only brings more security to users but allows them to be more flexible in their choices.
With Checkin.com’s AI-driven solution, crypto companies can take onboarding to a new level, resulting in higher conversion rates and happier clients.
Disclaimer. Cointelegraph does not endorse any content or product on this page. While we aim at providing you with all important information that we could obtain in this sponsored article, readers should do their own research before taking any actions related to the company and carry full responsibility for their decisions, nor can this article be considered as investment advice.