Here I am back again with some facts:
Do you know in 2017 a survey from FDCI revealed that 25% of all US households were unbanked/underbanked? This meant that more than 30 million households did not have a bank or credit card account. That’s a huge value…30 Million! Then in 2019, another survey revealed that 25% fell drastically to 5.4%.
So, what does this mean? Of course, it means that in recent years there has been a change in the way we adopt banking. Maybe because the baking industry, in turn, has unleashed its true potential with digitalization. This is impressive but how much can we ensure that all the applicants are legit? After all, when the percentage of ‘unbanking’ decreased, we witnessed that frauds in the banking industry got increased! To support this, 2019 alone saw 650,572 cases of identity theft and 271,823 cases of credit card fraud in the US.
In the same year banking industry faced dramatic change!
The reason I am telling all this is to conclude is – we should absolutely understand the importance of KYC (know your customer). If digital KYC would have had been in place, there would have been inefficiency in handling the onboarding process and identity check.
What do you all think…Am I correct?