An Autonomous NEXT authored report released by Mitek, has targeted manual KYC and AML procedures as a major hurdle for digital lenders to overcome before competing with incumbents on price.
Entitled “European Digital Lenders: How operating efficiency is helping digital lenders attack a $150 billion annual origination market across the Eurozone in 2018”, the report highlights digital identity verification as a tool that digital-first lenders should be leveraging to gain traction. Such solutions were found to reduce KYC and AML checking costs by up to 70%, and further reduce the time associated with on-boarding by 80%.
Despite a healthy and growing market, digital-first lenders are struggling to out-price their traditional rivals. Digital identity verification powered by AI technology, however, has been hailed as a means to “ward off inefficiency and drive the best possible customer experience,” comments Rene Hendrikse, EMEA MD at Mitek.
The details of the full release can be found here.