Implementing eKYC is something you should consider, whether you are a small or large business
owner. KYC (and eKYC) stands for Know Your Customer. It is a method that is
used by financial institutions and other companies to learn about and verify
the identity of their customers. It is a process that consists of checkpoints
set in the early stages of the relationship between a bank, for instance, and
the customers. These checks are designed to verify that a customer is a person
or an entity, with valid documentation and legal responsibility.
If we take the context of a bank, checkpoints will include the collection of legal
documents and information for verification of customer identity. The bank can
also require additional information to create a risk profiling assessment if
the customer is considered ‘a high risk’.
The manual process can becomplicated, prone to errors, or have unique challenges. Such challenges include time-consuming and tedious onboarding process, inconsistent data
quality, complex ownership structures as well as growing regulatory demands to
monitor customer risk at all stages. Therefore, this process needed to be
digitized in order to solve data accuracy issues, reduce errors, save time, and
also cope with evolving regulation.
Over the past decade, and with the impact of technological advancements in areas of
artificial intelligence, machine learning, and mobile technology, eKYC
solutions began to formulate in one way or another. Experts from various industries
studied and examined the efficacy of these solutions and concluded that eKYC is
the way to move forward.
So if you still use KYC authentication, it is time you considered eKYC. The role of eKYC is toverify the identity of customers to indicate the start of a specific
relationship, but the extent of the importance of eKYC is immeasurable.
For more information on the eKYC process, visitour website at https://loginid.io/
