Electronic Know Your Customer is to help you combat fraudulent activities such as money laundering, terrorist financing, corruption, etc. A manual KYC process is not considered a safer option for identity verification if customer-sensitive data is always at high risk. That is why many financial companies are switching online, reducing face-to-face interaction between clients and service providers. As a result, it can boost organisation productivity and efficiency in the competitive world.
Different Types of KYC Solutions
These KYC procedures are not limited to banks. Nowadays, these also apply to financial institutions that offer various services such as exchanges, brokerages, online wallets, etc. KYC is an umbrella term that is used in various industry segments. It has been a popular method to reduce fraud and other financial illegalities.
KYB ( Know Your Business)
It is considered an extension of KYC, emphasising businesses rather than individuals. This Know Your Customer method is perfect for critical practices while dealing with companies such as cryptocurrency exchanges.
CIP ( Customer Identification Program)
The Customer Identification Program (CIP) is a regulation under the USA Patriot Act requiring financial institutions to verify the identity of customers opening accounts. It involves collecting and verifying personal information such as name, date of birth, address, and identification number. The goal is to prevent money laundering, terrorist financing, and other illicit activities by ensuring the identity of individuals engaging in financial transactions.
CDD( Customer Due Diligence)
It can be divided into two parts: SCDD( (Simplified Customer Due Diligence) and EDD (Enhanced Due Diligence). In this e-KYC process, service providers gather in-depth information about their customers, such as business activity, their risk chances, and their career scope. EDD process is performed for higher-risk value transactions and individuals.
E KYC Online Solution
e KYC is one of the most demanding Know Your Customer methods that makes everything safer and improves the onboarding process. Many reputed service providers offer eKYC software solutions for a seamless onboarding experience. The user does not need to present physical documents, and this method speeds up the process from start to finish.
Gather requirements to choose the right candidate.
As we know, one size does not fit all approaches. Let's discuss some important aspects that you can weigh up. Different industries have several rules and regulations on what they need to follow or not when it comes to eKYC and general customer interaction. It is crucial to opt for the right provider through a legal expert or Google with a proven track record.
Determine what experience you want for your customers/ users. Please choose a more streamlined and easy-to-use process for them without compromising security. Ensure their EKYC solution fits your user's journey and overall system.
Key factors need to be considered to make an informed decision.
Is it relevant to EKYC solutions methods that are applicable securely and positively?
Ensure that the chosen e-KYC software solution can collate and analyse all the data the same, regardless of its language.
One of the most important things is that the KYC portal solution adheres to the relevant regulations in your country. If you break the law, it may drag your company into deep legal trouble.
Know your Budget and financial restrictions and ensure the chosen E-KYC solution service easily fits your needs. However, remember to lock a choice if you choose a solid eKYC solution.
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