Know your customer, alternatively known as know your client or simply KYC, is the process of a business verifying the identity of its clients and assessing their suitability, along with the potential risks of illegal intentions towards the business relationship. It is also focused on needs and objectives of clients, in a way that is unrelated to financial products or services.
As we continue to develop applications on top of our prediction AI software we expect to deliver a suite of standard FinTech applications for financial institutions. Karl Smith Managing Director, Decision Point AI™.
The ability to manage the huge and complex data attributes and risks of potential customers fits neatly into the original intent of the AI by defining threats and probabilities utilising Bayes Theorem. In probability theory and statistics, Bayes‘ theorem (alternatively Bayes‘ law or Bayes‘ rule) describes the probability of an event, based on prior knowledge of conditions that might be related to the event.
In KYC a clients identity, connections, business, social and media interactions can be utilised as attributes of a logical query on live data sources to determine the “current risk factors” of an individual or corporate entity.
Decision Point AI™ is not involved in providing financial services advice our role is to underwrite KYC decision points with transparent and traceable point in time reports for corporate risk management, regulatory compliance and consumer rights.