In a world where everyone can create multiple online profiles, It is difficult to differentiate between a real and a fake individual. Organizations use various identity verification methods to identify their customer. For this reason, the authorities have created rules and regulations for every business entity. The Know Your Client (KYC) also sometimes referred to as Know Your Customer compliance is a set of rules which standardize the process of identity verification. Several Industries utilize this technique worldwide to efficiently identify the individuals and more importantly restrict the attackers from the system.
Know Your Customer Compliance
The KYC process uses different verification checks to evaluate the client. The complete cycle identifies the customers and their associated channels. It is made necessary by the official regulatory authorities of most countries. The main aim of the KYC check is to monitor the clients and prevent the risks of increasing thefts and scams in the community.
Know Your Client compliance is greatly improved by the addition of new methods of verification. The technology has played its part in providing a more secure way of authenticating and verifying users on the go. The processes of traditional KYC procedures such as document verification and address verification are all carried out more efficiently online. The digital KYC process also enhances the operation by adding multiple checks into the system.
Digital KYC Solutions
The digital KYC solutions are more reliable than the traditional Know Your Client approach. As defined above the online service provides more easy ways to verify your customer and increases the rate of accuracy of the KYC identity verification process. Computerized processing incorporates the effective algorithms of artificial intelligence that create patterns to efficiently identify the customers. Another beneficial use of digital KYC solutions is the automation of several identity verification processes such as document verification and address verification.
Automated Document Verification
The automated document verification solution is efficient as compared to the traditional approach to verifying legal papers. The digital method involves the use of new technologies such as artificial intelligence and optical character recognition which enables the faster verification of documents digitally. Most critical systems that involve the exchange of finances also verify the document of the customer from authentic legal sources. The digital method of verifying paperwork automatically processes the uploaded files and provides a real-time outcome. This method works well in preventing document frauds such as forged papers and synthetic identity.
The address verification process is also greatly improved by the digital KYC solution. The address checkup is also automated by use of geo-location services such as the Global Positioning System (GPS). This exact location tracking also helps in the enhanced due diligence process of the customer. Using digital tactics like OCR, most businesses also extract the address of the client from their uploaded documents like utility bills. This technique helps organizations identify their clients and other business partners. This method is also widely adopted by the security authorities to track criminals in real-time.
The additional step in KYC compliance drastically improves the level of identification is the incorporation of biometric services in the identity verification cycle. The face recognition method is the most used industrial technique that major businesses implement in order to verify their new customers. The face verification method also plays an important role in the digital onboarding of new employees and clients. With the addition of biometrics such as face and fingerprint reading methods, the theft rate is highly reduced as compared to the traditional approaches to identification.
2 Factor Authentication
Most people experience an additional check on most platforms when they try to log in from another device. This verification check is called the 2-factor authentication check. It provides an additional layer of insurance and prevents attackers from stealing real customer profiles. This method in the Know Your Client cycle increases the security protocols by granting access to verified users only.
Consent Note Verification
These digital procedures strengthen the KYC regulations. The traditional method of consent acceptance is replaced by the modern way of verifying the consent of the client. A live call or a selfie with a proper consent note is required by the modern-day systems to proceed further. The business resources are greatly protected by this way of consent acceptance.
The Know Your Client Verification service is a must for every business to identify real customers and catch fraudsters from their networks. This method is performed mostly during the onboarding phase where the identity of the client is fully evaluated by different methods of verification. In the modern world, the digital KYC solution has made these techniques a lot more efficient and fast, thanks to the new ways of interaction. With digital methods, the client’s data is processed by computerized checks. These checks include document verification, biometric verification, etc.