HMW statement

How might we streamline the KYC process ?

The manual Know Your Customer (KYC) process based on email and phone communication is inefficient, error-prone, and lacks scalability. How might we efficiently verify the identities of our clients and ensure compliance with regulations while maintaining a seamless user experience?

Main objectives

By aligning efforts with these goals, we can create a streamlined, user-centric, and secure KYC process that enhances the overall user experience while meeting compliance requirements.

1. Streamline the KYC process Minimize steps and simplify the process to improve efficiency and user-friendliness.

2. Ensure clarity and accuracy Provide clear instructions and guidelines to users, minimizing errors and confusion.

3. Enhance transparency and user visibility Implement progress indicators or a status tracker for users to track the KYC verification process.

4. Automate data collection and verification

5. Utilize automation technologies to streamline data collection and verification processes.

Competitive research

Gain insights into competitors’ strategies, products, and market positioning

Based on the competitive research conducted by our team, here are the key principles they recommend for enhancing the KYC process:

• Meaningful and intentional data chunking to ensure the user isn’t overwhelmed with data entry.

• Provide the user a way to visually track their progress.

• Give transparency on why we ask for certain information to establish trust with our users.

• Offer document upload and auto-fill capabilities to save time and avoid human error.

• Approachable and easy-to-understand language to empower clients of all financial literacy levels.

• Provide supplementary visual aids to assist users faced with complex questions.

Discover - Initial design

Evaluate existing design that was created by the previous designer

I joined this project in its early stages, where the initial design was created by the previous designer. Upon evaluation, I identified opportunities to improve the logic and flow. I believe that understanding the underlying logic and outlining the AI process would be beneficial.

Define -Information Architecture

Clarifying dynamic questionnaire logic

The questionnaire is dynamic and based on various factors, including entity type, business structure, and more. Therefore, I have created an Information Architecture chart to help us understand the logic behind it. I presented this to internal stakeholder and KYC teams to ensure it’s correct and they really appreciated it.

Develop

Apply Visual Design

After finalized the the logic flow with our stakeholders and designers, I made hi-fi screens for user testing.

Step 3 Beneficial ownership:
In this step we collect the owners and controllers. The requirements are dynamic and is based on the entity type.

Develop - Usability test

Bring to the users

We conducted the research with 11 multifamily owner/operators who had a non sole proprietor business entity structure. Feedback was collected through remote moderated Zoom sessions.
Overall, participants provided overwhelmingly positive feedback on the UI and found navigating through the universal onboarding experience effortless and straightforward. All participants were able to identify and perform critical tasks and felt supported by the content if something was unclear.

Key Takeaway

1. All participants agreed that is was easy to navigate through the new onboarding experience, easy to keep track of their location, easy to see what required their attention, and easy to find supporting information if something was unclear.

2. All participants agreed that is was easy to navigate through the new onboarding experience, easy to keep track of their location, easy to see what required their attention, and easy to find supporting information if something was unclear.

3. “Verify information” task copy did not provide sufficient context about what business information is expected to be verified and why we require verification of this information in the property management context.

4. Ownership structure setup was perceived as the most difficult part of the onboarding process and participants often referred to the support information and example flow charts to help them represent the structure.

Deliver- Final design

Improve design based on the learnings

After finalized the the logic flow with our stakeholders and designers, I made hi-fi screens for user testing.

Set expectation upfront

1. Add dialog before starting the task to let the users know what to expect and what kind of documents they may need that’d be helpful. We also added a card on each page under the wizard to provide the details on the step level.

2. Change the language on Bene owner page by not saying controller, we get more clarification on what controller really means and replaced with actually roles

Use more user friendly language and avoid banking terminologies

• Change the language on Beneficial ownership page, such as using person and business instead if individual and non-individual.

Results

KYC transformation in 2022 leads to remarkable results: faster processing, simplified questionnaires, and efficient communication.

The product was launched in early 2022 and is currently in the pilot phase. While we are still in the process of collecting some offline information, we have successfully reduced the workload for KYC officers. They are extremely satisfied with the progress and have been instrumental in defining the remaining features.

1. Reduced Processing Time
   By optimizing and streamlining the KYC process, the average processing time can be reduced from average 14 days to an average of 3 days. This results in faster onboarding of clients, improved efficiency, and enhanced customer satisfaction.

2. Simplified Questionnaire
   By condensing the KYC questionnaire from over 100 questions to only 25 to 30 questions based on the client type, the process becomes more user-friendly and less overwhelming. This simplification reduces the time required for clients to complete the questionnaire, improves accuracy, and minimizes user drop-offs.

3. Reduced Communication Time
   By automating data collection through intelligent systems and utilizing advanced technologies, the need for manual communication can be significantly reduced. This automation saves time for both clients and internal teams, enabling faster data collection, verification, and reducing the overall time spent on communication.

Other business impacts

In the wake of Silicon Valley Bank (SVB) fallout, collaborative design expedites onboarding for 200+ clients in the commercial sector

The design has proven to be highly effective and is now being leveraged by other products for client onboarding within the commercial sector. In 2023 March, after the SVB fallout, we had to come out with efficient onboarding process to onboard client from SVB. I collaborated with 2 other designers and used our design and added more KYC questions that’s treasure service specific. We shipped the product in 3 weeks and have onboarding more than 200 clients so far.

Takeaways

What I learned from the project

1. Understand and adapt to users' language: While designing the KYC (Know Your Customer) flow, it is crucial to ensure that the terminology used is accessible to all users, including business owners who may not be familiar with banking terms. Instead of assuming their understanding, conduct user research and incorporate user-friendly language into the design.

2. Collaboration with developers: Regular communication and collaboration with developers throughout the design process can greatly reduce the chances of defects and design debts when deploying the product. By maintaining an open channel of communication, designers can address any potential issues or inconsistencies early on.

3. Embrace stakeholder feedback: When stakeholders provide feedback on the design, it is crucial to approach it with empathy and openness, even if it contradicts established design principles or patterns. By listening to their feedback and engaging in a collaborative dialogue, it becomes possible to find a solution that satisfies everyone involved.