New dimensions of technology usage have been created with the arrival of various online services. On one side, these services have provided users and companies with a ton of benefits while on the other side they have created opportunities for cybercriminals to devise new ways of frauds and scams. Hackers can fake someone’s ID, use their credentials, buy illegal products from their money, and can perform different types of malicious crimes. This creates a problem for the businesses without knowing the real identity of customers, they would always be at risk of potential crimes.
Fast and Frictionless User Onboarding with e-KYC
Usually. companies spend a ton of resources and time optimizing their websites and producing attractive content to generate as much traffic as possible for the website. The main goal associated with doing all this is to convert that traffic into becoming customers. Online KYC is a process that lets businesses onboard their customers swiftly and smoothly by verifying their true identities before any transaction is made. Through this process, firms get to know who they are engaging themselves with and are they really who they claim to be or not. The onboarding process is essential not only for the customers but also for detecting frauds and risks before any financial or reputational damage could be done.
The What, Who, and How of Digital Customer Onboarding
What are e-KYC Solutions?
KYC verification system has gone digital with e-KYC solutions which have been adopted by many companies to establish better security concerns. This allows to onboard customers digitally dismissing the need for in-branch or on-premise evaluation since everything is verified online on the websites. The users can upload their documents from anywhere in the world at any time without the condition of meeting with office members physically while securing their information.
Who Is Using The Service of e-KYC?
As more and more businesses are going digital the idea of online KYC has become a necessity for smooth functioning. In compliance with KYC regulations, this process is helpful for companies who are working on a small scale and offers to cater to customers online-only like e-retailers, online merchants, and businesses who can only onboard their customers online.
How Does Digital KYC Work?
The process of e-KYC onboarding customers is easy and flexible as it allows the user to sign up for the service and upload their documents online via a webcam or a smartphone camera. After which, their documents are matched with a source of evidence provided by the users. The results are generated to configure whether the individual’s identity is verified or non-verified. This whole process of identity verification serves to meet the Know Your Customer (KYC) Compliance standards.
Benefits of Utilizing e-KYC
- More work in less budget: As everything is conducted online, e-KYC is beneficial, especially for the micro-organizations who want to produce more profits while using less labor and resources.
- Flexible In-house facilities: Consumers do not have to get out of their house and go to an office for submitting their documents. They can upload their documents digitally without any hassle.
- Quick and Easy: The procedure of e-KYC has made the ways of identity verification easy and fast as everything is done in a digital environment.
- Cost-Efficient: The travel cost of visiting the office has been reduced as customers are not required to meet officials physically. The cost of hardware and resources used to store a pile of documents has been reduced as everything is stored on the digital platform.
Challenges of e-KYC Customer Onboarding
- Fake Identities: As people do their transactions online, fraudsters have created new ways of halting this process of transactions. They invade into accounts of the customers and steal the information. After which they create fake identities by combining the real and fake information to get further access to perform illegal activities.
- Forging ID Documents: The techniques used by fraudsters in the online world is rising as by phishing the data of the users, and by forging their documents through photoshop, they can create fake ID credentials.
- Using the information of deceased people: Fraudsters have found a new way of stealing information by accessing the data of deceased people who have a positive record and using their data to perform illicit crimes.
Wrapping it Up
As the internet technologies rapidly increased in the world, the online market has also seen a surge of cybercriminals. It has led to changing the manual process of KYC verification to digital e-KYC onboarding. Companies use this process to verify their customers before onboarding them in order to detect any potential threats that they could possibly possess to the company. With the usage of e-KYC solutions, firms can enhance their brand image and can develop trustful relationships with their customers as client transparency is established more often. So companies who want to experience a smooth customer onboarding process need to consider the e-KYC procedure as an essential tool.