AI Development for KYC: Business Guidelines and Applications

AI Development for KYC: Business Guidelines and Applications

Artificial intelligence (AI) is poised to improve security across the financial landscape. From AI-powered surveillance to automated data extraction, AI technologies are optimizing security efforts for businesses and financial institutions. [AI...

Artificial intelligence (AI) is poised to improve security across the financial landscape. From AI-powered surveillance to automated data extraction, AI technologies are optimizing security efforts for businesses and financial institutions. AI development services are set to disrupt legacy processes like Know Your Customer or KYC for improved verification and enhanced customer experience. AI development for KYC deploys technologies like computer vision, Natural Language Processing (NLP), and machine learning for significant value generation.

In this article, let’s unfold the impact of AI in KYC automation with advanced applications.

Traditional KYC Process
The traditional KYC process is laden with multiple layers of verification stages, both manual and digital. The process begins with the collection of data from millions of customers including prodigious volumes of documents and files. The next step involves manual validation of customer data that make KYC time-consuming, high-cost, and risk-based operation. On top of it, the continuous need for updating customer data in business logs challenges KYC completion with accuracy and efficiency.

According to Mckinsey’s Lab Research,

“Since 2009, banks worldwide have paid over billion in penalties for failing to resolve financial crimes.”

In addition to these challenges, the current KYC process often fails to address security concerns and queries arising from customers. A customer’s application can be off-boarded at any stage due to innumerable compliance issues or quality controls. Consequently, today banks are struggling to clear a large backlog of KYC applications resulting in rising financial crimes and data insecurity.

How does AI Development impact KYC
Artificial intelligence is making remarkable strides in the data analytics domain due to dynamic data processing and validating capabilities. Businesses are beginning to capitalize on AI’s data extraction and processing capabilities to ingest value-based automation in critical KYC processes, such as-

a) Data Extraction and Verification

b) Fraud Detection, and

c) Anti-money laundering Compliance

Let’s take a closer look at how businesses can channelize artificial intelligence services for an accelerated KYC process and enhanced customer experience.

Effective AI Development Techniques and Applications for KYC

  1. Multiple Layers of Automated Verification
    Though financial institutions have been at the forefront of digital transformation, manual intervention for data analysis remains an inevitable challenge for banks. Artificial intelligence opens new opportunities for financial institutions to introduce automation to the KYC process.

Algorithmic advancements and data-driven machine learning development services are key enablers of KYC automation. Here are some innovative AI applications for KYC-

a) Computer Vision for Facial Recognition
ML libraries like OpenCV and TensorFlow can train models for facial detection and gesture recognition of individuals and digital images. Banks can also integrate computer vision solutions in their cloud infrastructure for real-time image processing, analytics, and detect facial spoofing.

b) OCR for document verification
Optical Character Recognition or OCR enables text recognization and extraction from unstructured data such as ID cards, passports, driving license, and PAN Cards. Document verification with OCR can also automate validation of customer signature and detection of anomalies.

  1. Real-time Fraud Detection
    The lack of any standard process cycle for KYC operations makes it difficult to comply with money laundering laws and data security protocols. Poor KYC security systems put consumer’s data in vulnerable hands and prevent companies to achieve anti-money laundering compliance.

With the advent of AI, banks and businesses can rely on machine learning capabilities for real-time fraud detection. Banks can detect fraudulent behavior among customer by deploying the following AI development techniques-

a) Supervised and Unsupervised Machine Learning models
The pattern recognition abilities like data tagging of customer data can categorize fraud and non-fraud patterns. In addition to training models, self-learning systems powered by unsupervised learning can learn itself from system errors and anomalies.

b) Predictive analytics for early fraud detection
AI’s predictive capabilities can also prevent the entry of illegitimate KYC applications by categorizing most likely fraudulent early in the process. Automatic question and answering systems can extract valuable information from customers who suggest higher risk.

Exploring AI Development for KYC with Oodles AI
AI-driven transformation is projected to add a layer of automation in almost every industry. At Oodles, we combine our AI development forces with machine learning algorithms to build seamless verification models for financial institutions. Our most recent development in this field involves the deployment of ML-based APIs to validate customer documents and images in the form of-

a) PAN Card

b) Adhar Card

c) Passports, and

d) Voter ID Cards

The model uses MongoDB to authenticate customer data through tokens. Valid customer data will be stored in the S3 bucket along with image URL and textual information. The model then returns all the actionable data in a JSON file with the concerned system.

Besides, our machine learning capabilities for KYC automation extend to AI-powered computer vision, NLP, and OCR technologies.

Reach out to our AI development team to learn more about our artificial intelligence services.

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Is Low-code or no-code development is future of mobile app development

Is Low-code or no-code development is future of mobile app development

Mobile app development has skyrocketed over these years with the increasing demand of mobile apps for a variety of purposes like entertainment, banking, weather update, health, booking movie tickets, booking a taxi etc. With the latest...

Mobile app development has skyrocketed over these years with the increasing demand of mobile apps for a variety of purposes like entertainment, banking, weather update, health, booking movie tickets, booking a taxi etc. With the latest technologies adopted by mobile app development services, there are different app development approaches which are being practiced. Among them is low-code or no-code development. But will it be the future of mobile app development? Will any mobile application development company start taking this approach as the primary one. Let’s try to find a detailed answer to this question.

But first, let’s understand what this approach exactly is? Well, it is a streamlined approach which involves swift design as well as development with minimal coding, generally relying on different third-party APIs.

Even though there isn’t any single definition of no-code or low-code development because it is actually more of a mindset rather than something which can be directly measured, this mindset has certainly led to a vast community mushrooming up with this mentality. Android app development services are rapidly adopted by this approach. Low-code app innovators are rapidly disrupting all types of various industries. There are a plethora of benefits to these low code platforms and let’s look at this.

1. Less Number of Bugs

It is pretty evident that less code actually means fewer bugs. As simple as that. The entire bug testing phase is actually a major part of modern and latest application development. It is quite inevitable that various issues will come up if there is actually enough code present there. But the best thing regarding low code platforms is that there’s certainly less to test. Also, when they actually tap into APIs, those particular APIs are actually tested by other people.

Lesser number of bugs is better for both users, as well as developers since less amount of time, will be taken up with bug-fixes and troubleshooting. Also, the fast pace of this development approach actually means that if in any case a bug is found, it is generally better just to develop a new iteration rather than fixing it.

2. Significant Lower Costs

Among the most obvious reasons for why you would actually opt for any low code platform is that in reality, low code results in lower cost. Low code development leads to faster app development which saves a lot of time and as a result, lower cost.

It's not only good for companies but also for developers. It certainly cut out the intermediaries, and while they charge less, they use fewer resources and finally come out on top. It is fun for developers because it stops them from actually finding themselves stuck on one particular project which seems to last forever. This is why most of the companies hire app developer who is a well-versed with low-code development.

3. Better Accessibility

The lesser amount of code an application uses, the lesser bandwidth is needed to download it as well as run it. This is quite good news for the people who are based in rural areas or in different developing countries where access to the internet isn’t as prevalent as Western countries. Also, as low code applications can easily be created quite easily than a traditional app, they can easily be released much more swiftly and at a much lower price, and sometimes for free. iPhone app development services follow this approach because it will help in increasing the uptake of their apps as it reduces the entry barrier for every person from lower-income families.

Innovative Development Approach

Among the most promising instances of a low-code or no-code platform is Uber. The apps tap into Google for Maps, Dropbox for storage, Braintree for payments and much more. The most interesting thing about this is that app programming interfaces of APIs which Uber actually relies upon are easily available to anyone who wishes to use them. Uber took those APIs and then used them to create, which was new without requiring to develop each of those particular individual elements, all by themselves. They developed their own brand on top of it by means of looking at how they could actually differentiate themselves from the rest of the others. Mobile app development services should follow this example to create their own low code mobile app which disrupts the market.

The best thing about this is that it inspires innovation. At present, the marketplace actually decides, and only the best applications rise to the top. Also, low code development easily allows developers to iterate much more quickly and can aim for higher more.

The Role of Artificial Intelligence (AI)

Artificial Intelligence is certainly making big waves in different businesses, and as this technology improves further, it will find its way in different other uncharted areas. Among those areas is the low code app development, where it comes in quite useful for a wide range of tasks and actions including the integration of various data sources or just making sense of an entire unstructured or semi-structured data.

Artificial Intelligence is quite great at analysing and conducting trial and error. Hence, it won’t be quite long until the usage of AI becomes quite a standard part of the low code app development. A mobile application development company can find ways to reduce the total amount of code that it is using through AI and flagging potential and possible improvements.

Conclusion

It is quite certain that low-code or no-code app development is the future of app development for one of the simplest reasons that it is quite easier as well as faster and efficiently uses time. It actually doesn’t matter whether Android app development services or iPhone app development services are on-board with this particular change or not. This is quite inevitable as this approach is the path of least resistance. Also, as the inherent demand for low code platforms keeps in growing, developers will certainly find themselves to adopt it.

It is quite a great news as it will push the developers of mobile application development services to become the best. Also, there won’t be any time to redoing it to create the same thing, or any room for sloppy code as well as lengthy development processes which makes the mobile apps redundant even before they are actually finished. Hence, low-code or no-code development will certainly lead the future of mobile app development, and mobile app developers certainly have to get on the bandwagon, one way or the other.

Top Hybrid App Development Companies | Hire Hybrid App Developers | Reviews

Top Hybrid App Development Companies | Hire Hybrid App Developers | Reviews

An extensively researched list of top 10+ [hybrid app developers](https://www.topdevelopers.co/directory/mobile-app-developers/hybrid "hybrid app developers") with ratings & reviews to help find the best custom hybrid app development companies...

An extensively researched list of top 10+ hybrid app developers with ratings & reviews to help find the best custom hybrid app development companies around the world.

Are you searching for top Hybrid mobile app developers? We at TopDevelopers.co after extensive research have listed the Hybrid app development companies for your convenience.TopDevelopers also makes sure that this list includes the top-rated Hybrid mobile app developers. A full-featured cross-platform compatible app is not only ideal due to its cost-effectiveness but, it also reduces the time to market. However, the real challenge is to find an authentic Hybrid app development service provider. Bid adieu to all your worries, as TopDevelopers provides you with a list of internationally recognized Hybrid service providers. So, go ahead and hire from the best Hybrid developer for your dream Hybrid app project.

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