With the incorporation of KYC verification, companies may lower the chances of illegal financial activities while adhering to global norms. Moreover, lowering fraudulent instances and money laundering also contributes to trust building between corporations and customers. The IDV process keeps on working even when the business knows nothing about it.
Digitisation has advanced rapidly in recent years across a wide variety of industries. When it comes to online moving processes, financial companies as well as banks, have taken charge as the important sector. Simply said, online eKYC is a more forward-thinking form of traditional KYC authentication with increased automation and digitisation. It is a completely digital, paperless scheme with the capacity to remotely validate clients in a quicker, more detailed way than know your customer verification.
The Digitalisation of KYC in Business (eKYC)
Considering the interruptions of old-style KYC processes and clients asking for additional accessibility in occupational activities, the digitalisation of know your customer (eKYC) has become a critical accomplishment for industries.
So, how is the KYC digitisation in an industry carried out? eKYC encompasses technologies such as face recognition, Optical Character Recognition (OCR), and smart ID validation solutions, which facilitate the process of customer onboarding and customer identification and authentication.
Customers will fill out forms online with the needed information to verify their identity, including their names and addresses. eKYC solutions enable businesses to edit and remove fields from the forms, which means the forms will differ based on the business needs.
Then the customer will be asked to capture their IDs or passports to extract data using OCR technology. To verify their identities, customers will be asked to take selfies to match them with the photos on their IDs or passports using facial recognition.
After that, the given information or details will be monitored with governmental records, such as AML and ICA databases.
The eKYC process does not end with onboarding. Ongoing AML and behavioural monitoring are carried out along the customer journey to maintain security and protect businesses and their customers from fraud.
The Benefits of eKYC
- Saves customer time in the approval or transaction
- 24-hour availability to automatically flag any negative media
- Time-saving and minimising the requirement to make an on-site visit
- Robust fraud protection
- Boost customer satisfaction
New additions of modern applications happen daily, but the main industries that use them are:
- Fintech Businesses
- Real Estate
Step-by-Step Procedure for eKYC Solution
The eKYC technique beats traditional usage for both new and recurring clients. All consumer authentication necessities, including customer due diligence, continuous monitoring, and onboarding, are addressed by this solo technique.
Verification of Documents
The first stage of e-KYC document checking is to appeal and automatically verify scanned documentation of customers’ identities. The optical Character Recognition (OCR) system is used to recover the client’s personal details from scanned ID documentation. By cross-checking the document patterns with pre-defined, real document categories, AI-powered authentication is carried out.
In the eKYC process, a kind of authentication strategy, aka video is employed to give customers additional options to verify their identities. In the KYC video process, a professional cross-checks the customer’s real-time video with their identity documentation to validate the user’s identity.
Risky in terms of fraud is not just the onboarding phase. Existing clients in financial companies often prove to be untruthful. Financial institutions are suggested to uninterruptedly monitor client transactions and alert the authorities to any unfamiliar motion to avoid being deceived by impostors. Checking for current customers on PEP and worldwide sanctions lists is a phase in the procedure.
Financial companies need robust and online eKYC verification solutions to establish themselves in the market. Additionally, it offers an easy-to-implement client onboarding procedure. Furthermore, digital IDV also enables corporations to comply with onerous AML rules.
It also enables businesses to ignore fraud and con games. As an outcome, financial institutes can now make models to fight fraudsters. It also shows the technique of providing financial insertion as being superior and all appropriate data synchronised. Moreover, it delivers digital biometric and document authentication to fulfil digital world requirements.