eKYC is pivotal to digital banking. But what is it and how does it work?

eKYC is the acronym for Electronic Know Your Customer. We are told how important it is to ‘know your customer’ in terms of customer relations, but what we are talking about here is something completely different.

Find out how to implement eKYC for your business and customers now by requesting a demo from our team.

KYC is a set of procedures to verify a customer’s identity against the available database of records and watchlists. This precedes accounts being opened and approved to conduct transactions in the systems with banks and other financial institutions. KYC is primary to protect both financial institutions and their customers. It also aids in tracking finances introduced into the economy based on who and where it comes from.

As the criminal element has grown and the threat to this security increased, the prevalence of eKYC has grown, providing growing benefits to customers and brokers.

What is eKYC?

eKYC is the onboarding process that a potential customer will go through to verify they are who they say they are with a bank or financial institution, using electronic means.

How does eKYC work?

This operation uses electronic identification processes with the aid of technology such as Artificial Intelligence (e.g. OCR – Optical Character Recognition, Facial Recognition, and live-check, photo capture, etc.) and Machine Learning to digitize the manual KYC process, consequently authenticating a customer’s identity electronically, in a paperless way.

Whether you are a customer or a financial institution, eKYC aims to protect both privacy and carry out the verification to keep all involved safe.

Another benefit of eKYC is reduced failed client acquisition and acquiring new customers. We live in an era where banks face the pressure to increase their acquisition rates. Because of this, the digital boarding process is very crucial when it comes to creating sympathy to attract new customers and loyal customer engagement …

~ Lanhi Gold

Benefits of eKYC

The benefits of this operation are:

  • reduced time completing processes by the bank, saving the customer time in the approval or transaction process
  • operational 24/7, 365 days to automatically flag any negative or false media
  • save time and cost by minimising the need to make an on-site visit
  • stronger fraud protection
  • increase customer satisfaction.

New discoveries of additional applications happen regularly, but the main industries that use them are:

  • banks
  • Fintech companies (e-wallet, cryptocurrency)
  • insurers, and
  • real estate.

eKYC is a proven way to verify identity in order to prevent fraud online. This method allows users to complete KYC (Know Your Customer) requirements without having to physically visit a brick and mortar facility at any time of day or night.

Join the secure companies using this safe, easy software to streamline your processes and transfer the way your clients do business with you. Click here to contact us for a demo now.

Sources: Cyberlink, Kms-solutions, Lleida