How KYC Verification Helps New-age Companies in 2023

25/05/2023

KYC verification is digitising technologies to remove the hurdles in financial inclusion so that firms can instantly deliver developments and services.

The World Bank predicts that billions of online customers still need identity validation, despite cases caused by the corona pandemic. Due to this, customers cannot access necessary services effortlessly. For instance,

Medical Sector

Financial Sector

Social Security

Real-Estate Sector

They are not unfounded anxieties, despite what they might seem like. People are now more conscious of financial instability as a result of these difficulties. They brought up the necessity for considerable changes in financial companies’ attempts to identify solutions. To deliver flawless customer service and build a strong foundation for the pyramid, all businesses must adopt online or video KYC verification.

Businessmen and other entrepreneurs can opt for ways that are more effective, beneficial, and socially acceptable. Moreover, they can demonstrate that they put their client’s needs ahead of profits and offer flexibility during uncertain times.

What is Video Know Your Customer?

With a developing governing landscape, it is very difficult for industries to keep up with know your customer compliance. Every company must upgrade its operations for secure online transactions and make digital onboarding common for clients.

Therefore, facial recognition technology providers are upgrading and stabilising financial institutions’ systems. The integration of Machine Learning (ML) and Artificial Intelligence (AI) based identity verification tools will allow financial organisations to reduce customer hassle and can also help to enhance security.

Video KYC has revolutionised the financial institution as now they can deal with present criminal threats, and suspicious activities, and combat fraud risks more efficiently without having any chance of error.

Well-known Perks of AI-Driven KYC Checks

The following are prevalent benefits of employing online solutions to discourage the attempts of fraudulent activities. 

Delivering Speed & Ease to Clients 

The factors of speed and accessibility are among the major factors for clients to ensure a helpful customer experience. Earlier, the manual operations were time-taking and cumbersome, due to which clients shifted from one firm to another.

With the collaboration of third-party vendors, organisations can incorporate KYC checks and verify new customers’ identities in a more secure way. Passports and driving licences The use of government-issued records, such as passports and driving licences, can help experts onboard genuine clients by screening photos of original records in real-time. 

Mitigating Risks & Attracting Genuine Customers

In the context of business growth, performing identity verification becomes increasingly important to discourage crime & connect with genuine clients worldwide. As per a global fraud report, the absence of robust security protocols can discourage customers from receiving benefits from the company and shift to a better experience. 

KYC compliance helps mitigate business risk, increase customer satisfaction and ensure compliance with knowing your customer & anti-money laundering regulations. This way, experts can reduce errors in the final output & attract genuine customers. 

Importance of KYC Online Verification in Financial Inclusion

Financial inclusion certifies user access to all the services. Hence, promoting financial inclusion involves facilities appropriate for economic goods.

Digital Financial Inclusion Gap

Online Banking

Insurance

Financial Inclusion Problems

Credit Card Providers

Loan Products

Video KYC in Real Estate

In order to prevent fraud efficiently, several real estate companies are improving their AML/KYC regulations as money laundering and other evil activities are very common in it. It will also help them to stop cyberattacks.

There are security services that notify the organisation in case of suspicious activity or any unusual transaction. Companies must uphold their transactional record for the removal of money laundering risks. So, organisations must implement video KYC verification to simplify the process for them.

Conclusion

Businesses now have things easier thanks to the rising popularity of KYC online verification solutions. Digital IDV brings ease in businesses to comply with strict AML and know-your-customer compliance. Moreover, it simplifies the customer onboarding process.

Additionally, it has created an environment that is favourable for combating fraud, which has been a problem for years. Corporations have been able to develop cutting-edge methods to fight fraud thanks to eKYC.

Online KYC verification aims to bring financial inclusion to the most vulnerable people while establishing fair standards for both individuals and businesses. These crucial services support better standards of behaviour while raising business objectives. Governments must therefore implement advanced monitoring teams and standardised laws.

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