In accordance with rules and regulations, KYC verification is the process of confirming a person’s identity. It is primarily used to prevent money laundering.
The KYC process has been implemented in order to decrease the frequency of illicit transactions in response to the pronounced difficulty to identify and stop online fraud. Due diligence measures are required while conducting overseas business due to the surge in identity theft instances caused by the rising adoption of technologies.
Governmental organisations in every nation regulate KYC because it is sensitive for enterprises. When opening a bank account or making any kind of financial transaction, KYC procedures are required. Due to the global pandemic in 2020, several businesses have had to set up remote Know Your Customer systems in order to abide by legal requirements and carry on with business as usual.
How Does KYC Function?
KYC is an essential component of the customer identification system in financial services. In this procedure, clients’ identities are verified in order to prevent business dealings with individuals connected to fraud, terrorism, corruption, or money laundering, among other things.
The KYC verification procedure enables businesses to confirm the identity of their customers so they can access the services or goods they require. The eKYC procedure, which is carried out online, enables quick onboarding of new users onto a financial services platform.
Online Identity Verification for KYC
Identification verification guarantees the dependability of the authenticity of both a person’s identity and the processes they are doing. Banks do this to stop people from assuming phoney identities or engaging in fraud.
There are many ways to verify an individual’s identification. Depending on the channel and how the service is delivered, there are many various ways to verify an individual’s identification, from manual to automated.
The identity document is given to the agent simultaneously in a typical manner so that the agent can confirm the person’s identity by comparing the person’s appearance to the photograph on the identification card.
Since there is no set location with set hours where a representative may verify the legitimacy of an identity document, the identification process online is different from the one in person.
What’s the Process for Online Identity Verification?
Many different identification techniques are utilised online, but only a small number of them are adequate and fulfil the requirements for a secure and trustworthy procedure, and we offer these kinds of solutions.
It is a remote identity verification system that complies with all legal criteria and high security/reliability standards. We assist businesses in securing and expediting the consumer onboarding process. Modern AI KYC systems automatically reject fraudsters while quickly onboarding legitimate consumers.
An internet-connected gadget is used in the convenient and secure digital process known as eKYC to verify a person’s identity.
The Benefits of Biometric Identity Verification for Banks and FinTech
Money laundering and the financing of terrorism are only two of the financial crimes that banks and other financial organisations struggle to stop. Similar checks required in other businesses are handled through the online KYC banking procedure, although regulatory requirements are more stringent. In order to comply with current requirements, banks must go through extensive KYC (Know Your Customer) inspections.
In the past few years, there has been an increase in the use of biometrics for customer onboarding. Client identification is made simple and more secure for both parties by using such solutions. Additionally, banks can automate the onboarding process with the aid of eKYC technologies.
7 Arguments for Using Biometric Identity Verification Technologies
- Help fraud teams by easing the burden on them.
- Stop the creation of false accounts.
- Compared to manual operator verification, it is less expensive and more scaleable on large volumes.
- A speedy and intuitive approach will increase conversion rates.
- By reducing human engagement, operating costs can be decreased.
- Automation of the onboarding process
- Increases customer acquisition while decreasing churn
In the End:
KYC has become really important in all industries for smooth customer onboarding. It helps companies to verify their customer easily and conveniently. This helps them tackle fake identities to stop fraud. As we all know, scamming is on the rise these days people use different techniques to do fraud. One of the main scams is deepfake. People use similar faces through deepfake that can access the account of someone. KYC verification is doing good to tackle these scams. KYC verification is being used in almost all industries these days. That makes it the first choice when doing financial transactions.
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