Satisfying a customer is a critical part of keeping them linked with a business for a longer period of time. As the world is moving towards digitization at a fast pace, new ways of getting the customers engaged have been developed. During the time of the Covid-19 pandemic, the physical interaction of the customers came to a halt which made them look forward to implementing online ways of connecting socially. This gave a surge for the companies to go digital. Companies were getting benefits from onboarding an increased number of customers but on the side, a lot of criminal techniques were also growing at an alarming rate. Identity thefts, forging the documents, falsifying and modifying elements to perform their desired actions can prove to be fatal for a business. Therefore, eKYC onboarding can be crucial for benefiting companies in considerable ways.
Replacing the Manual Concept with Digital Ways of Customer Onboarding
Applying the effective ways of online KYC, financial institutions can opt to onboard more customers by utilizing less amount of time. The manual procedure of meeting with an official person face-to-face has been reduced with an online investigation. Customers do not have to wait in lines in banks to submit their documents and wait hours for results. In fact, all they have to do while using an e-KYC solution is to upload the picture of their documents, get it scanned, and verified, and obtain results in a time-efficient way. This all could be done while sitting at home or anywhere without the need to physically visit the office.
Different Types of Technologies used for Digitally Onboarding Customers
Various sectors can use different kinds of technologies depending on their need for appointing diverse methods of security measures in the companies. The two common methods used in the online world which are in accordance with KYC compliance are:
- Comparing the client through facial recognition technology: Users are generally asked to upload a picture of their government-issued documents such as driver’s license, identity documents, etc. After analyzing the information in the documents they upload a selfie through which their facial features are compared and matched with a photo posted on the official documents. The face recognition technology also contains a feature for liveness detection of the client as they pose their face in front of the camera to add an intense layer of security.
- Reviewing the client’s identity through a recorded video: Another option given in the KYC verification procedure consists of where the user records a video after which their validation process is carried out. Furthermore, they can also be presented with the possibility of initiating a video conference for online face-to-face interaction with an official agent which will ultimately verify the identity of the user. During the video call, the customer presents proof of evidence by presenting their documents in front of the camera.
Beneficial Aspects of Enforcing the e-KYC regulations in Organizations
- Trustful Relationships are formed with customers: With businesses getting to know about the reality of their customers way before they are onboarded, it can cause them to establish a transparent bond through which they can easily trust them and allow customers to perform transactions smoothly.
- Usage of fewer resources: The online KYC can prove to be beneficial for the micro-business as they have a small budget to operate their workings. Since everything is carried out digitally, automatic measures allow businesses to operate more duties to be executed by utilizing fewer resources providing them with a cost-effective approach.
- Saving time: With the reduction of the manual process of entering information of every customer each time, it saves up time which could be utilized by the company to perform other meaningful tasks.
- Minimizing fraudsters: As humans are prone to mistakes, the automatic online procedure helps in detecting criminals in a more secure way. With constant monitoring, any low-risk individual can be caught performing any suspicious activity even after they have been onboarded. Any tempered document can also be detected and the identification process can be stopped right at that dubious moment.
Finding a Balanced Approach with e-KYC
Companies need to maintain a balanced approach while onboarding new customers as they pose various threats to the organizations in the future. Giving them full access immediately can prove to be a problematic risk factor. Many people operating from a single account such as Netflix need to be examined properly so that the trouble of data breaches could get minimized. Not only this but analyzing the interest levels of third-party organizations interlinked with a specific account should also be evaluated to avoid any harm caused by high-risk individuals utmost.
Wrapping it Up
Applying an e-KYC boarding process in various institutions can allow the companies to combat fraudsters in a quick structured way. In addition, the KYC verification method will allow the firms to generate revenue at a greater amount since more work will be done in less time due to the automatic measures being executed. Companies need to implement digital ways of identity verification to draw out the competitors from the global market by establishing a more satisfactory customer experience.