Opening bank accounts often gets overwhelming for customers, as the process involves strict KYC checks. However, recent digital advances are making these processes easier for customers and businesses alike. With online KYC verification, businesses can verify their customers with a single click or face scan.
Online KYC verification is a modern technology worldwide for smooth and efficient customer verification. In fact, it is a quicker, more secure, and better e-verification method for customer identification.
In this blog, we’ll explore online KYC checks. Furthermore, we’ll discuss why banks need eKYC in the modern day and how implementing digital processes can improve customer onboarding.
Why Is Online KYC Needed?
Businesses, especially financial institutions, perform client due diligence through online KYC, a digital technique used for identification verification. Online KYC, in this regard, helps companies accelerate the speed of their customer onboarding processes, lower the risk of fraud, as well as enhance their regulatory compliance.
How Does Online KYC Process Work?
The online KYC procedure simplifies the process of customer identification by eliminating the need for physical submission of documents and physical presence. The overall digital KYC procedure works in the following steps:
- Online Client Registration: During KYC, clients first register themselves on the company’s website, where they must provide certain information, including their complete name, date of birth, place of birth, and contact information. It allows them to register at their convenience without traveling to a physical place or filling out paper papers.
- Submission of Documents: Customers submit their documents digitally without being physically present.
- Document Verification: The respective business or company utilizes the submitted documents to confirm the identification of customers. Nevertheless, some companies use additional protection measures, including automatic video identification or facial recognition.
- Validation of Data: Data validation includes confirming the precision of data by comparing it to preexisting records in the company database.
- Online KYC Completion and Ongoing Management: The online KYC check is completed once the documents have been authenticated and the customer has been onboarded. However, regular checks are mandatory to ensure the customer’s data is accurate. This is especially important for financial institutions to ensure they remain KYC compliant.
In fact, online KYC refers to using digital methods for identity verification of clients to improve business operations regarding speed and safety.
How Does Online KYC Onboarding Benefit Customers?
The onboarding process for new customers can be streamlined, and customer satisfaction can rise with the help of an online KYC system. Let’s explore how online KYC solutions are helping businesses save time and money during onboarding.
Increases Customer Satisfaction
Online KYC fulfils modern consumers’ expectations for fuss-free, intuitive interactions. Customers experience the convenience of completing the onboarding process digitally from the comfort of their own homes. As a result, businesses can gain more satisfied customers to stick around.
Cutting Costs
Digital KYC verification methods eliminate the need for time-consuming and laborious in-person verification processes and cumbersome documentation. Furthermore, this lessens the financial burden of traditionally laborious procedures, and customers can start quickly and easily, helping companies save energy and manpower.
Boosts Safety and Regulation Compliance
Using online KYC verification also improves security and lessens the possibility of fraud. However, there is more possibility for fraud and identity theft with the standard KYC procedures. Conversely, digital KYC uses protection measures like data encryption and MFA (multi-factor authentication) to keep client information safe. To further mitigate the possibility of fraud and guarantee conformity with all applicable regulations, online KYC checks customer information against several independent databases.
Cuts Down on Paperwork
The standard method of doing KYC can be tedious and paper-intensive. However, online KYC allows businesses and their consumers to bypass the need for physical documents during onboarding. The time and money required to onboard new clients is thereby reduced.
Read Also: How education can power a better world?
Final Thoughts
Online KYC verification is an advanced method for companies to engage with their clientele. eKYC is paving the way for this digital revolution by providing a fast, quick, and secure approach to customer verification. Furthermore, digital KYC helps businesses improve customer experience, decrease fraud risk, and guarantee regulatory compliance.
In addition, novel applications have emerged thanks to integrating eKYC with biometrics and other cutting-edge technology. It has made the verification process more secure and incredibly straightforward.
With the passage of time, technology is growing in full swing, and eKYC has become a must-have tool for the tech or digital society. It will be revolutionizing for the companies and customers both in providing and getting secure services. Undoubtedly, eKYC has a bright future and it will shine in future with more light.
