KYC-Chain’s Risk Scoring tool empowers Automation with Human Insight

First of all, Happy New Year wishes and a safe year ahead from all of us at KYC-Chain. We’ve been very pleased to hear how your KYC project developments are going or being planned for this year, and very much look forward to more successful collaboration

From our side, here’s a short monthly update on our new Risk Scoring tool:

AI, Human Insight & KYC

While impressive, giant steps have been made in the way AI technology is used to optimize KYC efforts, technology still can't and probably shouldn't replace the role humans have to play. Many aspects of KYC can be codified and processed using AI and other technical tools which are directed at, namely criminal enterprise and ingenuity. However, achieving this effectively is challenging as these areas are fundamentally human and therefore fluid in nature. In simple terms, criminal activity - including money laundering - is unpredictable and hard to track using AI because it has the power of human creativity on its side. 

While KYC Automation does have the advantage of reducing labour and time costs, especially when it comes to employing large compliance teams, the evolving nature of criminal activity requires striking a balance between AI and  the need for human oversight, judgement and problem solving.
This goes to the heart of KYC-Chain's new Risk Scoring tool, which has been thoroughly tested in our recent KeyFi onboarding process. It first utilizes an automated pre-screening tool to prevent Sybil attacks and then feeds the user's KYC results into a scorecard of risk scoring parameters. Automation is further extended to approve users with a low risk score and employs a human element to check users with a medium or high risk score.

The experience has taught us that whilst AI tools are much quicker at identifying very black and white results, they still need a human touch for the more greyer areas where more nuanced or complex judgements are needed.

If you would like to learn more about our new Risk Scoring tool or other features that KYC-Chain can provide, contact us directly and we’ll be happy to have a conversation.