KYC (Know Your Customer)
Digital ID Verification
Digital identity verification brings the identity verification concept to today’s remote world. With data breaches, account takeover attacks, and identity theft on the rise and increased demand for remote processes, financial institutions need to detect identity fraud and determine if someone is who they claim to be online.
Digital identity verification methods such as biometric verification, face recognition and digital ID document verification can help financial institutions verify a person’s identity online.
Digital identity verification is used when the person and their ID document are not physically present. Digital identity verification can also speed up ID verification by leveraging technologies that make it easier to submit, collect and validate identifying documents.
Digital identity verification is key during the account opening and customer onboarding process. By verifying an applicant’s identity, financial institutions can run checks to ensure that the applicant is not a fraudster, criminal, bad actor, or attempting a scam
KYC stands for “Know Your Customer.” It is a process that financial institutions, such as banks, use to verify the identity of their clients and assess their potential risks for money laundering or financing terrorism. This process typically involves collecting information about the client, such as their name, address, and identification documents.
The goal of KYC is to ensure that financial institutions have a clear understanding of their clients and the nature of their financial activities. This helps to prevent illegal activities, such as money laundering, and protect the financial institution and its clients from financial crime.
KYC procedures are required by law in many countries and are an important part of the financial industry’s efforts to combat financial crime.
KYC is essential because it helps keep you safe and ensures we don’t enable any illegal money activities. It’s a standard requirement in most countries around the world and helps reduce business risk.
KYC is a crucial part of the onboarding practice – and although it may seem inconvenient, it benefits you, the customer a lot too.
There are several advantages to using digital identity verification:
Speed and convenience: Digital identity verification allows users to complete the process quickly and easily, without the need to visit a physical location or provide multiple documents.
Increased security: Digital identity verification uses advanced technology, such as biometric authentication and machine learning, to accurately and securely verify a user’s identity.
Reduced fraud: Digital identity verification can help to reduce fraudulent activity by providing a secure and reliable way to verify a user’s identity.
Increased accessibility: Digital identity verification allows users to verify their identity from any location with an internet connection, making it more accessible to those who may have difficulty accessing traditional in-person verification methods.
Improved customer experience: Digital identity verification can improve the customer experience by making it easier and more convenient for users to verify their identity and complete transactions.