Why has the average time to complete KYC verification for Luno's South African customers increased from 2 days to 5 days in the last week?

Introduction

The recent increase in KYC verification time for Luno's South African customers from 2 to 5 days is a critical issue that demands immediate attention. This analysis will systematically identify, validate, and address the root cause while considering both short-term fixes and long-term strategic implications.

Step 1

Clarifying Questions (3 minutes)

• Looking at the timing, I'm thinking there might be a recent change in the KYC process. Has there been any update to the verification workflow in the past two weeks?

Why it matters: Recent changes often correlate with performance shifts. Expected answer: Yes, a new identity verification step was added. Impact on approach: If confirmed, we'd focus on optimizing the new step.

• Considering the scale of the issue, I'm wondering about the affected user segments. Is this increase uniform across all user types, or are certain groups (e.g., new vs. existing users) more impacted?

Why it matters: Helps narrow down potential causes and tailor solutions. Expected answer: New users are experiencing longer delays than existing users. Impact on approach: We'd prioritize investigating the onboarding flow for new users.

• Given the specific timeframe, I'm curious about any external factors. Have there been any regulatory changes or government announcements regarding KYC processes in South Africa recently?

Why it matters: External factors could be driving the increase independently of internal processes. Expected answer: No significant regulatory changes have been announced. Impact on approach: We'd focus more on internal factors if external influences are ruled out.

• Thinking about system performance, I'm wondering if there have been any recent infrastructure changes or increased load on our verification systems?

Why it matters: Technical issues could be causing bottlenecks in the verification process. Expected answer: There was a server upgrade last week. Impact on approach: We'd investigate potential compatibility issues or performance degradation post-upgrade.