Simplifying KYC for a crypto trading application

The European private bank implemented a cryptocurrency strategy, with a need for a brand new digital KYC and app onboarding experience to ensure compliance and security for a new generation of investors.

Industry

Finance, Cryptocurrency

Solution Customer validationDesignDevelopmentProduct design sprint Year

2023

Challenges

The bank decided to broaden its services into the cryptocurrency market and recognised that it needed to adhere to the stringent regulatory and security demands of this asset class while also making things as simple and quick as possible for users to the new service. The bank’s risk policies needed to remain enforced and there needed to be automated screening (against watchlists from a separate AML/KYC provider) and ID verification (from a separate identity verification provider). Central to this challenge was the necessity to empower back-office representatives with flexibility in managing high volumes of client onboarding permissions, particularly to address scenarios involving alerts or name matches. The overarching objective was to optimize the onboarding process while upholding regulatory compliance and robust security measures.

Approach

We developed a seamless onboarding process that balances security with simplicity, ensuring compliance with stringent crypto regulations. Our team integrated robust AML/KYC and ID verification solutions, enabling automated checks while giving back-office staff the flexibility to manage alerts. Through iterative testing with interactive prototypes, we designed and implemented a user-friendly, secure KYC journey that meets both regulatory standards and user expectations.

Solution

From the very beginning we recognised that we had to prioritise two critical elements:

Uncompromising security

The adoption of robust and multi-layered security protocols to safeguard user information, and digital assets, and ensure complete platform integrity.

Streamlined account creation

The design of a frictionless account creation process tailored to accommodate a diverse range of investors to ensure a smooth entry point for users, irrespective of their technical proficiency or investment objectives.

In workshops we mapped out the workflow which the digital solution needed to support:

• Data gathering from the investor themselves, including digital identity verification
• Screening based upon this information
• Flagging of alerts
• Backoffice review with further analysis and verification of the applicant
• Decision by back office
• Final decision by front office, with outcome communicated digitally to the onboarding applicant.
• If successful, access to the crypto trading app

We then studied the compliance requirements and the screening and ID verification services with which we needed to integrate, looking at the APIs and data and folding this into a proposed user experience which we tested using interactive prototypes.

Eventually we created the detailed designs and working code for the following features, all interlinked to show a clear visual onboarding journey for all parties:

• Self-service registration:

  Applicants begin the onboarding process by providing personal details with a focus on minimising unnecessary data collection.

• Suitability checking:

  Checking customers’ suitability by evaluating their crypto knowledge, experience, and risk tolerance.

• Compliance checks and ID verification:

  The application conducts compliance checks against bank policy and verifies the applicant's identity through face and document photos.

• AML verification:

  Built-in checks with 3rd party AML screening tool are performed as part of financial crime compliance, complementing the ID verification process.

• Admin portal:

  Built-in checks with 3rd party digital ID verification tool.

Impact

We crafted a bespoke digital onboarding solution specifically designed for our client’s crypto service, which aims to establish a new paradigm for client experience. The intuitive navigation, clear visuals, and interactive elements helped set the bank apart from traditional banking experiences, while giving them peace of mind that they remained fully compliant.