Have you ever opened an N26 account? The user experience and process is super fast and smooth.  But behind the screens, there are complex layers of compliance and security that checks you’re a real person.  This is called KYC (Know Your Customers): collecting information to verify a user’s identity. And it is one of the biggest challenges in disrupting finance and other regulated industries. Multiple options in different legislations are available. Often, customer experience must be traded off against safety and compliance. We were glad to welcome Lorenz Jüngling, CPO at N26 to come share his tricks on how to draft good KYC processes that lower these frictions.  Lorenz was for 12 years a McKinsey consultant before he joined N26 first as COO (9 months) then as CPO.

1. 1
Instant KYC - almost
Berlin, October 18, 2017

2. Jack Lancaster
Product Owner
Dr. Lorenz Jüngling
CPO, former COO
Timo Meyer
Expansion Lead

3. €5.2bn1.5k+500k+
New users per dayUser Base Transaction Volume

4. What is KYC?
Identification and verification of users

5. Why do we do it?
Regulatory requirement
Prevent money laundering
Manage risk

6. Signup
Completed
Email
Confirmed
Product
Selected
KYC
Started
KYC
Completed
Card
Activated
Financially
Active
KYC - the toughest part of the funnel

7. The old way
KYC

9. Traditional KYC

10. Traditional KYC
Not user friendly

11. Traditional KYC
Not user friendly
Not mobile

12. Traditional KYC
Not user friendly
Not mobile
Not scalable

13. The N26 way
KYC

14. KYC &
Secure AccountAcquisition Sign-up
App
Onboarding
€ €
Card
Activation
First
Transactions
KYC - the N26 way
Gatekeeper to the app

15. 1515
KYC - the N26 way

16. 1616
KYC - the N26 way
Real Time
Verifies users in ~8 minutes

17. 1717
KYC - the N26 way
Available in five languages
Localised onboarding for key markets
Real Time
Verifies users in ~8 minutes

18. 1818
KYC - the N26 way
Mobile experience
On brand with being The Mobile Bank
Real Time
Verifies users in ~8 minutes
Available in five languages
Localised onboarding for key markets

19. 1919
KYC - the N26 way
Real Time
Verifies users in ~8 minutes
Available in five languages
Localised onboarding for key markets
Mobile experience
On brand with being The Mobile Bank
Comparatively high conversion
76% users complete KYC

20. Operating at scale
KYC

21. 2121
Operating at scale
Large increase in initiated calls over the last 12 months
8,000
12,000
16,000
20,000
24,000
28,000
32,000
09/16 10/16 11/16 12/16 01/17 02/17 03/17 04/17 05/17 06/17 07/17 08/17 09/17

22. 2222
8,000
12,000
16,000
20,000
24,000
28,000
32,000
09/16 10/16 11/16 12/16 01/17 02/17 03/17 04/17 05/17 06/17 07/17 08/17 09/17
Actions to resolve this
Large increase in initiated calls over the last 12 months
Optimise
Product
Handle
Peaks
Insource
Agents

23. 2323
Insource
Agents
Own the touchpoint
Benchmark services
Ensure stable SLAs
Individualise experience

24. Insourcing of KYC
% of finished inhouse identifications

25. 2525
Understand organic peaks
Prepare for external events
Flexible agents
Handle
Peaks

26. 08:00
Operations in KYC
Improve handling of peaks
10:00 12:00 14:00 16:00 18:00 20:00 22:00

27. 2727
Understand organic peaks
Prepare for external events
Flexible agents
Handle
Peaks

28. 2828
Prepare documents
Determine eligibility through document
Test connection
Optimise
Product

29. 2929
Nationality
Optimising for operations
Prepare documents

30. 3030
Optimising for operations
Prepare documents

31. 3131
Prepare documents
Determine eligibility through document
Test connection
Optimise
Product

32. 3232
Nationality +
Optimising for operations
Determine eligibility through document

33. 3333
Prepare documents
Determine eligibility through document
Test connection
Optimise
Product

34. 3434
Optimising for operations
Test connection

35. 35
Q&A
Berlin, October 18, 2017