KYC to UYC, should we move one step ahead now?
KYC to UYC.
Should #Banks and other Financial institutions move a step ahead from KYC (Know Your Customer) to #UYC (Understand Your Customer) ?
It seems with so many defaults and issues KYC has not been an effective tool in preventing/predicting an instance. We must keep a track of the customer (both New & Existing) behaviour and understand their need and assess to some extent the intention. Similar to what many companies are doing for lending, a #psychometric assessment.
Apart from asking customers to update their KYC periodically as per RBI guideline, can we have #UYC assessment for our customers too, can be an online questionnaire.
Time has changed and is changing rapidly, why are we stuck with same old age #Risk assessment parameters?
Its time to make best use of technology, #DataAnalysis, and other tools to keep our business intact. It will also help us to identify the latent needs and Product design along with Risk assessment.
Please share your thoughts..What else can we do as part of UYC?