When potential customers come to the shop for purchase, you do not know anything about them. When they are trying to make a purchase, you stall the process midway to obtain all information about them for KYC.
Getting information such as name, contact details, profession, and proof of identity is the easy part of the process. Still, some customers would not like to divulge all this information for fear of data leaks.
The process becomes longer when jewellers collect more detailed information such as the source of funds, beneficial ownership, etc. Jewellers would then go on to perform another step of comparing the customer details on Sanction Lists, PEPs, and terrorist lists of governments.
All these KYC and CDD steps take a longer time to complete. This may irk the customers who may just want to do away with jewellery purchasing.
All these steps show that jewellers’ focus remains on complying with the regulatory obligations. The pressure from the senior management and fear of reputation risk also makes them pay attention to compliance.
But, due to this, they compromise the customers’ experience during the onboarding process. The jewellers do not value the customers’ time and efforts in coming to the shop. Such experience may lead to customers turning to other jewellers.