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Artificial Intelligence has become the talk of the town, and tech companies have started integrating AI into their product development for faster processing and thereby substantially reducing manual work. Be it any industry; AI has been optimally utilized with perfection by multiple industries to streamline their business practices for better service delivery.
Know Your Customer (KYC) industry can be benefitted from Artificial Intelligence as the businesses demand a full proof KYC verification before a customer is registered. Therefore, it has become essential for AI to become a foundation for KYC industry and improve the standards of service.
Know Your Customer (KYC)
This business practice is significant to carry out before an end-user utilizes the service. The service provider has to collect confidential information from its customers and verifying these credentials are the responsibility of the company. What aspect of a person’s identity is verified solely depends upon the regulatory guidelines of the respective enterprise performing KYC verification.
What are AI offerings for KYC?
AI in KYC detects any attempt at tampering with personal data or using a fake document to perform KYC. Listed below are a few offering by AI in KYC industry.
1. Miscellaneous services
As AI enables KYC verification in real-time, a typical KYC provider can increase the number of verification services offered to its customers. As AI can perform any procedure instantly, numerous services can be performed in a single cycle such as facial recognition, address verification, and document verification as well.
2. Multiple Formats
AI puts forward the opportunity to use various formats for KYC. Optical Character Recognition (OCR) is used by the organizations to extract data from identity documents that can be used by organizations to verify an identity of their users. Live or recorded video clip are all possible scenarios, where AI can step in a KYC process.
3. Spoofing attack
Facial spoofing attacks are becoming a must in the online fraud. A duplicate image of a user is used by online scammers to falsely project an identity. If AI is integrated into the KYC software, organizations can get rid of false spoofing methods and also clean the online marketplace.
4. AML and CTF Compliance
Numerous banking organizations and financial institutes are modifying their KYC software by adopting Anti-Money laundering and combating the Financing of Terrorism (AML and CTC) compliance measures. Although this verification is time consuming but with the help of AI, it can be done in real-time thereby protecting banks and financial institutions from unwanted fines.
5. Language is no more a barrier
AI is the perfect fit for the KYC industry as it has the ability to understand all the languages. A KYC system that can comprehend all the speeches and match the respective credentials is a massive boost for enterprises.