A cycle of multiple steps and tasks is followed in order to onboard new clients in organizations. The legitimacy of any customer is evaluated on the basis of results extracted from eKYC solutions. Traditionally, several manual verification methods, such as in-person meetings and document inspections by company representatives, are used during the onboarding process for new customers. The value of manually verifying identities is eroding over time. According to a survey, as businesses are switching toward online KYC solutions, number of online companies and the eCommerce market is rapidly growing. In 2021, the market for e-commerce worldwide was worth $2.2 billion.
To combat and prevent money laundering, the KYC (Know Your Customer) act was first introduced in the early 2000s. To ensure that users meet the requirements, a careful verification check is made of their qualifications for the desired activity. Nearly all businesses conduct eKYC solution checks as part of the onboarding process for new users. It is a requirement of the majority of nations by law. By using eKYC onboarding techniques, KYC user verification can be completed in a way that complies with all rules. Digital platforms are used by the eKYC solution, and new technological developments have made it easy to implement globally.
Many companies are aware of the benefits of the eKYC solution and want to incorporate them into their regular business practices for customer enrollment. Due to the old-age detection procedure, they are never willing to acquire them. Customers dislike having to travel to corporate offices and other official locations to have their identities verified because the process is complicated, plus time-consuming. They have an additional incentive to take preventative action to safeguard both themselves and their clients.
e-KYC is causing a complete evolution of the onboarding process. Thanks to the advancement of new technologies, it is now simpler to confirm a user’s identity online. To verify the legitimacy of customers, various innovations are used in the eKYC solution. The user can validate their biometrics, check their online documents, and validate their recorded videos online using an e-kyc solution.
Biometrics is a safe technique for identifying and verifying an individual that cannot be hijacked by fraudsters. The eKYC solution successfully integrates new digital biometric characteristics to confirm user identification. Fingerprint scanning is a safe and secure biometric technology that is extensively used in e-KYC systems. It is used by many online platforms to validate users’ fingerprints. Facial scanning, which uses the user’s face for identification and verification, is a more modern approach than fingerprint imprints. It is one of the best verification tools. Other secure approaches, such as iris scanning and user retinal identification, are also utilized in several systems.
Document verification is necessary since it provides users with confirmation of their identities. Online systems can also be used to scan and verify user documents. These two cutting-edge technologies, artificial intelligence integrated with OCR,ICR, and the eKYC solution, completely examine the user’s papers. Modern document processing systems are now so sophisticated that they undertake validation checks on papers to seek signs of forgery. The document verification method is an important part of the eKYC solution checklist.
In the next level of the eKYC solution, the user’s video identity is used for customer verification. The consumer must provide a high-quality recorded video of the user’s face to the web portal. The customer’s face is validated via the camera to safely verify the identification. E-KYC solution is carried out using recorded video evidence, which exposes the identities of individuals.
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To complete verification cycle for the manual KYC check, the client must physically meet with officials. The same scenario is carried out online via an internet video conference between the user and the company’s verification representative.
An e-KYC solution is latest approach to the identity verification process. Modern technologies and techniques, such as biometric scanning video identification, are being employed digitally to assist this strategy. An excellent approach to handling user data is video conferencing between a customer and an organization, as well as document online verification. All the business sectors, like financial institutes, organizations, educational institutes, entertainment, and gaming, should be habitual of using the latest technology while onboarding new clients, artificial intelligence integrated tech solutions to identify fraudsters. These technological integrations like the eKYC solution do not only help while onboarding new clients; perhaps they help to retain a secure and trustworthy business environment in the long run.