Much has been said about the potential for rapid economic development in the developing world by harnessing the lessons learnt from the developed world. In the financial services industry, especially, the development of digital banking systems to provide banking services to the poorest sectors of the population holds huge potential to boost development. 

In South Africa – a country struggling with significant unemployment rates and high levels of poverty – there have already been several successful ventures launched by established banks, as well as the launch of completely new banks that have quickly experienced great success. 

Other countries throughout Africa, South America and Asia have also greatly benefitted from these novel technologies and contemporary approaches to banking, thereby bringing previously isolated sectors of the population into the formal economy.  

Developing Markets and Technological Leapfrogging – Opportunities and Risks 

However, the digitalization of banking systems brings new risks. A shift to partial or fully digitalised banking services, which prioritise online services instead of face-to-face interaction, means that banks must adopt world-class digital tools for identity verification and Know Your Customer (KYC) checks in order to secure their digital services. 

A failure to do so exposes a bank to serious risks. First, there are basic security risks concerning financial crimes and the use of fake identities to defraud customers and steal money. 

Second, a failure to do so exposes banks to significant financial and regulatory risks, as many countries throughout the developing world are adopting increasingly stringent laws governing a multitude of factors including online security and data privacy. 

Identity Verification, Risk Assessment Services and KYC Checks for South Africa 

ThisIsMe is South Africa’s leading provider of digital tools for tasks like enhanced due diligence, KYC, customer due diligence, data validation and risk assessment. Committed to world-class standards for data handling and data privacy, ThisIsMe is proud to be at the forefront of a trust-based and privacy-compliant digital world. To experience our full suite of advanced due diligence services, contact our team here.