bankingciooutlook

Why e-KYC is Trending

Banking CIO Outlook | Friday, August 28, 2020

e-KYC can significantly boost document processing capabilities and standardize complex compliance procedures.

FREMONT, CA: Professionals from banking sectors well-understand the need for having standard customer identification solutions and monitoring the risk before offering any service. Know Your Customer (KYC) allows banking institutions to access complete information of customers that include authentications, income, ongoing policies, and more. Such in-depth information enables banking service providers to verify customer authenticity while accomplishing Customer Due Diligence (CDD). The emergence of electronic KYC (e-KYC) promises to streamline such operations and effectively overcome the challenges involved with the conventional methods.

e-KYC operates using an array of digital ID systems of the customers that hold all the financial details. The feature enhances customer identification and verification processes by retrieving basic information and streamlining the onboarding process. The decrease in paper-based document evaluation procedures reduces the cost and time spent on verification, thereby making e-KYC more even more affordable for low-income customers.

Today, most of the individuals prefer digital applications for services, even for banking services. e-KYC proves to fit properly in the modern times of digital infrastructure. Technologies such as artificial intelligence, blockchain, and more create a secure network of ID systems, removing the interference of third parties for transactions or for the purpose of accessing customer data. Such a feature not only creates opportunities for a direct link between service providers and customers via ID systems but also reduces the charge of the transaction, encouraging more customers to enroll in the e-KYC system.

Limited involvement of any third party across the verification, identification, and service delivery networks strengthens customer safety, security, and privacy. Such initiatives by the banking institutions create a brilliant, safe platform work system, where the risk level decreases for delivering financial services with the rise in data accuracy and faster document verification processes. Modern-day banking institutions need to use e-KYC solutions for standardizing core operations.

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