Almost 80 per cent of businesses are now using electronic checks. But more than two in five people have some level of distrust in the automated customer authentication checks.

The latest finding from AML software provider, SmartSearch, shows that 47 per cent of business decision-makers have a distinct lack of trust in electronic checks and verification. The numbers also show that 21 per cent of businesses do not trust any of their Anti-Money Laundering (AML) checks to be automated.

During the first lockdown of the United Kingdom, it had become the common practice to adopt automation of checks. But 23 per cent of businesses still have no automated processes for AML in place.

As the nation enters into another lockdown, many physical checks will not take place. SmartSearch calls on businesses to install in place better automation processes. The firm believes that such moves will improve the accuracy and efficiency of transactions. For businesses to operate in this time, automation is necessary.

CEO at SmartSearch, John Dobson, comments:

"When lockdown hit the first time, businesses suffered when it came to their AML checks. These need to be carried out by law, so when physical checks became impossible, it created a lot of issues for those who weren't already automating at least some of their processes.

"In spite of this, we can see now that 23% of businesses still have no automation in place when it comes to AML checks. Lockdown or not, introducing automation in your business is going to create some major efficiencies and free up time to focus on other business priorities."

SmartSearch data reveals that the most trusted standard customer authentication checks are found to be Credit History with 29 per cent saying they would automate these.

From the data gathered, the most and least trusted checks are:

1. Credit history – 29%

2. Special Interest Person – 26.4%

3. Customer Due Diligence – 23%

4. Identity – 22%

5. Sanctions and PIPs – 20.4%

6. RCA (Relatives and close associates) – 14.6%

Dobson advises businesses what they should consider in terms of electronic verification, adding:

"It's understandable that there's still some trepidation when it comes to e-verification and checks. You have to be able to trust that the system you're using is totally accurate and reliable. However, if this year has taught us anything it's that businesses simply can't afford to ignore automation.

"There's been so much innovation in the AML sector and we have recently launched our market-leading TripleCheck service, so I would urge those responsible for AML checks to research the options available to them. Getting your automation right could be a major help, as we all try and navigate 2020's challenging business landscape."

For more information about SmartSearch or its TripleCheck service, visit: https://www.smartsearch.com/