Financial institutions, such as banks and non-banking finance organizations, must follow Know Your Customer guidelines before providing any financial service to clients. KYC is used to verify a customer’s identity and authenticate their credentials. The “paperless KYC” technique refers to electronically validating a customer’s credentials. This means that the service provider will have access to your information, such as your name, address, gender, date of birth, cellphone number, and email address, collected from a database. This implies that your proof of identification and address is instantly sent to the service provider, avoiding the need for the time-consuming in-person verification procedure. If you need to change your digital KYC data, you may do so by logging onto your preferred eKYC site.
The fact is that banks have always had to cope with the potential of revenue losses generated by fraudulent activities. Today, they have huge challenges in combatting systematic digital fraud, particularly when dealing with remnants of obsolete legacy systems. As banking transactions have shifted to more digital and mobile platforms, digital onboarding process fraud has emerged to exploit the system in order to get access to cash. Furthermore, as technology advances, banks will have an increasing number of instruments to help them battle fraudsters, such as eKYC in the digital onboarding process for banks.
Rather than just authenticating users using online identity verification when they login to an account, systems continuously check reports to guarantee that users are not behaving abnormally. Using a scoring system to imagine how continuous authentication may work is one way to consider how it might work. Some mobile identity verification of the technologies employed in this process includes OCR, facial recognition, liveness detection, and fraud detection. As a consequence, banks may improve system security while simultaneously minimizing fraud throughout the digital onboarding process.
To learn more, below is an infographic from LoginID that discusses digital onboarding in banking.
