The need for physical documentation to verify the identities and authenticate customers is an ancient approach. Offline processes were dumped because they were immensely time-consuming and often triggered a lot of human errors.
But over time, the FinTech innovations took over, and the new age digital experiences were introduced to financial or banking firms. One among those digital revolutions was eKYC. The eKYC Solutions emerged as the ideal way to automate and streamline the all-round customer verification process for all the regulated entities and financial firms.
The technologies taking over the eKYC implementations are AI-based algorithms, facial recognition, biometric authentication and others. And, with a collective implementation of all, the customer verification and onboarding haven’t been any easier ever! To help you better understand eKYC solutions, here are some of their benefits for you to count on.
- Highly Accessible Online Banking Solutions
The customers do not have to visit the banks or any physical branch office to verify their identity face-to-face. Banks and financial firms can now leverage the potential of biometric authentication for verifying the identities of customers remotely. As a result, the entire process is shortened and offers a convenient experience for businesses and customers.
The use of eKYC solutions is quite helpful for crowdfunding platforms, credit scoring firms, online lenders or peer-to-peer lenders. In short, the entire lending market in the financial domain benefits from the eKYC solutions.
- Speeds Up the Digital Onboarding
Digital banks strive to increase their customer base faster, which is one of the many ways to earn revenue. Therefore, they need a way that can reduce their time and efforts upon requesting customers for their documents or data for manual verification.
Hence, manual KYC has now been replaced with eKYC solutions. Banks now have the liberty to leverage customer data efficiently. As eKYC is a faster verification approach, customers enjoy seamless and quick onboarding solutions. Banks get the chance to offer their services faster and on demand by processing these quick verifications.
- Lessened Chances of Fraudulent Instances & Reduced Operational Risks
As of today, there are several technologies in association with eKYC solutions which are helping financial institutions automate most of the customer verification aspects. For instance, AI and Machine Learning are now being used to support multiple verifications simultaneously, to help businesses offer consistent experiences.
Following that, the biometric authentication also ensures that no fraudulent attempts by suspicious individuals could pass through. As a result, terrorism funding, money laundering, fraud or security breaches won’t be a hassle. Upon eKYC verification, the system continues to monitor the behaviour of a customer consistently, to point out strange actions. Thus, people will have more trust in your brand as a financial provider.
So, these are a few of the core benefits of eKYC solutions that matter a lot for financial service providers. Even for the customers, eKYC has brought immense ease of accessing banking services from the comfort of their homes.
If you want to give your customers that flexibility and help your business adopt the digitalisation concept, then FidyPay offers you fast & efficient eKYC integration to your business platform. Irrespective of the business or use case, eKYC can be integrated into your business solutions.