Businesses require successful methods for a thorough inspection of their users before getting them on board. Pre-boarding verification is necessary to establish successful business relations and to reduce every kind of future complication. Many companies use weak inspection strategies and get victims of heavy financial losses for onboarding imposters. Many criminals reach out to organizations for money laundering and data breaches, and they use spoofed images, forged ID documents, and fake address proofs.
Organizations that do not adhere to a thorough identification of their users are at the stance of criminal activities. Hence, organizations utilzie Know Your Customer (KYC) compliance to verify user details for secure business processes. Nowadays, companies are using an uplift form of KYC, which is eKYC. It allows successful remote business processing with legitimate entities onboarding from all over the world.
What is Electronic Know Your Customer (eKYC)?
KYC is regulatory compliance and standard procedure for ID verification for legitimate user onboarding. Electronic KYC is an uplifted form of customer identification process as it is a digital process. Companies utilize the eKYC process and eliminate manual paperwork as it offers user authentication through various electronic channels.
The eKYC process involves all the automated and electronic methods for thorough user inspection and risk assessment. Companies utilize digital methods of KYC to identify their customers worldwide with more accuracy and in a short time. Additionally, the eKYC process compares user information with interrelated databases and checks facial data through a biometric system.
Why do businesses prefer eKYC Over manual ones?
In this time when the world has become a global village, every company is contacting users worldwide and enhancing its growth patterns. In such an era, it is necessary for companies to utilize modern solutions and mass communication to compete in this age of technology. The manual KYC process has its limits; it cannot help companies in the seamless establishment of business relations across borders. It involves paperwork and verifying user details through various ID documents in physical form. It is not possible to collect documents manually in a short time and enhance business boundaries with manual KYC.
eKYC allows companies to process user information in a short period and collect it digitally. It allows verification of user data in scanned papers and allows companies to establish business relations with entities worldwide. This process involves the use of an optical character recognition service to verify documents in scanned form.
How does the eKYC Process Work?
The eKYC process is convenient and involves streamlined working processes. Companies develop online business relations and require innovative digital solutions for secure user onboarding. The eKYC process involves artificial intelligence at the backend and facilitates organizations by providing seamless ID verification solutions.
In the eKYC process, companies simply provide platforms to their users such as websites , mobile applications and portals. Users submit required documents in scanned form.
The eKYC process avails assistance from optical character recognition technology to convert the information in scanned images to text format.
Once information is converted into scanned form, it is cross-checked through various procedures, which may involve database match sanctions checks.
Additionally, the eKYC process involves a biometric system to provide enhanced security. It works for the user’s liveness detection and verification of provided images, such as selfies and photos on ID cards, passports, and licenses.
Perks of Electronic Verification System of Customer ID
The electronic identity verification solution of eKYc is vital for enhanced organizational security, legal compliance, and seamless working. It enables companies to reduce the time and extra work of manual document checking, analysis, and storage. eKYC process offers electronic storage and automated information checking through artificial intelligence solutions.
There are various companies that offer eKYC services, and businesses can contact them to revolutionize their working landscape. It also plays a vital role in organizational success and development. The eKYC process involves real-time user authentication and eliminates the risk of fraudsters’ onboarding. It protects companies from data breaches and money laundering.
Additionally, companies use eKYC solutions for regulatory compliance solutions. Companies do not need to adhere to separate solutions for anti-money laundering compliance, but they can use eKYC service for it. It provides a thorough inspection of user-profiles and eliminates the risk of money laundering attacks.
Final Words
With growing technological innovations, it is necessary for businesses to utilize up-to-date security solutions. eKYC is necessary for legal compliance, which allows businesses to reduce penalties and secure their image. Digital KYC solutions enhance organizational security and streamline their working for successful remote business relations. The online KYC solution is the most accurate and precise solution for user ID authentication. The digital KYC process works for enhanced security and also eliminates the risk of money laundering by providing insight into user risk profiles.
