AI in KYC checks to generate substantial savings, Juniper Research

Tuesday 24 September 2019 10:40 CET | News

The combined cost savings for KYC checks for banking and property sales will near USD 1 billion by 2024; a growth of 690%, according to Juniper Research.

The research group recommends organisations to invest in the cost-saving potential of artificial intelligence solutions (AI) and cautions that although AI has vast potential, its use must be in line with overall business objectives or deployments will invariably fail to meet expectations. The impetus for this will be efficiency savings, as well as the enhanced user experience that can be implemented in customer onboarding. This will reduce user frustration by improving response times, increasing overall user satisfaction.

As the financial systems of developing regions become more advanced, so will their needs for regtech solutions. Moreover, with no anticipated relaxation of regulatory rigour over the forecast period and the ever-increasing spectre of financial penalties for non-compliance, global regulatory compliance spending will increase from just under USD 278 billion to more than USD 316 billion over the next 5 years.

Juniper Research forecasts that growth in West Europe will be driven by potentially divergent regulatory rules mandated by the UK and the EU following Brexit. While disruptive, this will create additional opportunities for regtech in the region.

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Keywords: AI, KYC, study, research, regtech, onboarding, banks, compliance, customer onboarding
Countries: World