As technology is evolving in the world, new ways of fraud have been generated which has made problems for the institutions dealing in finances more inevitable. Banks need to look out for the real identity of their users before any transaction activity is carried out. In recent times, eKYC has been similar to that of video KYC, in which users reveal their identity with the help of video digitally. With the new era of customer onboarding approaching, eKYC ensures that its customers do not have to go through long procedures of manual identity verification document, no more waiting in lines in order to open an account or conduct money transactions in banks.
The World is Moving Forward with eKYC
As the pandemic expanded around the world, it gave opportunities for newer technologies to be inaugurated so that people could be socially connected easily. eKYC (also known as electronic now your customer) is an electronic or digital version of customer identity verification in order to prevent organizations to protect them through potential risks.
The Contactless Customer Onboarding
The customer demand for the contactless technique of performing various tasks has increased rapidly. Due to this, eKYC has helped financial institutions at a wide range. In addition to this feature, online KYC regulation allows its customers the elimination of physical documents in the form of electronically presented scan documents, which indirectly leads to time efficiency and improving accuracy.
Electronic KYC Compliance Making Ways Easier for Businesses to Flourish
Digital KYC, works on automated artificial intelligence software, which confirms the identification of the individuals leading them to conform to KYC Compliance. Through this, fraudsters can be detected and results are generated digitally, showcasing that customers are really who they say claim to be while protecting businesses against any misfortunate reputational damages which can be caused by them.
Techniques of eKYC
Following are the techniques that eKYC uses to verify its users:
- Facial Recognition: Facial features of the head and face are matched to detect real customers.
- Document Verification: The accuracy of the information present in the governmental-based documents is checked.
- Address Verification: The correct address is located to find the customers at the right spot. Addresses are matched on the document to prevent any address manipulations to happen.
- Hand-written user consent: Doing an electronic-based signature or usage of handwritten consent can give access to genuine customers to onboard.
Benefits of eKYC While Onboarding Customers
eKYC has benefited many institutions in numerous aspects. Following are the factors which could be valuable:
- Inhouse flexibilities: Customers are not required to leave their homes and go to an office to provide identity-based documents, in fact, they could upload their documents digitally for verifications.
- Enhance the customer experience: People do not have to go through a hectic manual procedure of submitting documents physically. The hassle-free process of eKYC enables customers to have a much better experience as compared to manual procedures.
- Fast capturing of Data from video KYC: The facial matching software allows detection of face identities from the video platform. As more data is captured in less time with the usage of minimal input, it indeed proves to be a source of convenience.
- Cost-effective for the business: As people upload their documents from any part of the world, the travel cost of visiting the office has been reduced. The pile of documents and the requirement of hardware have also been minimized as the whole process is digitized.
- Gives a profitable rise to small-scale industries: Micro companies work on a small budget and want to use less labor, due to this, the digital onboarding of customers is essential for them.
- Storage Issues are resolved: As eKYC works on an automated system of securing information, huge stacks of files physically stored are not necessary and save up space for other documents to be stored.
Wrapping it Up
As new innovations have entered into the digital market at an increasingly high rate, the need for better ways of security needs to be implemented in a quick amount of time. The e-KYC solution guide can let the financial firms distinguish people who can be a potential risk to their work and keep on monitoring their transactions activities. With the numerous amount of benefits, it had made customer onboarding more convenient. Regardless, wherever the customers are sitting, through using an electronic device, whether it’s a phone, tablet, or laptop, they can prove their identity to the institutions and can gain access to perform their various tasks. As most of the KYC verification systems are manual, keeping up with the competitive world of technology, new tricks are therefore used to minimize user complaints and improve experiences by enhancing their loyalty towards the business. Hence, with the right use of technology and a focus on customer onboarding, multiple fraudulent activities can be eliminated without paying any penalties and therefore losing no customers.
