Digital KYC As A Method To Verify Identity Without Visiting Branches

Page 1

Digital KYC As A Method To Verify Identity Without Visiting Branches

The system of digital KYC has grabbed the market due to its easy accessibility. Customers are no longer required to visit branches for submitting their KYC. Instead, scanning an identity document along with the customer's face should do the needful. Through the method of identity verification, the authenticity of the person can be checked before he/she opts for opening a bank account or for any other financial issues. Even for combating KYC fraud, such a system is very important. It is even helpful in catching fraudulent activities like money laundering and changing documents. Why do people prefer digital KYC to traditional KYC? While traditional KYC involves visiting branches, standing in long queues and wasting a lot of the customer's precious time; digital KYC involves several methods like biometric updating, face recognition and digital ID documentation that can be done with one click, straight from home, or any other place.

Digital KYC ensures customers that they no longer have to visit branches for submitting documents. The different ways to verify identity without visiting a branch include:  ID Document Verification: Keeps a check that all the types of IDs (e.g., driver's license, passport, government ID) is authentic and up to date.  Biometric Verification: Clicking selfies to prove the existence of the person presenting the ID and matching it with the picture that appears on the ID.  Liveness Detection: Thorough checking of the document and determining its authenticity (whether the picture is clicked genuinely or is face masked or edited).  Knowledge-based Authentication (KBA): Developing a set of questions that are created out of the blue and deal with the personal information of the client.  One-time Passcode (OTP) Verification: Transmitting a single-use passcode (of 6-9 digits) through an SMS or email to the applicant during the verification process. This also reduces the possibility of KYC fraud during the process.  Trusted Identity Network: The existing credentials of the applicant is heightened by sharing them with another trusted provider who reduces the friction caused during opening or updating an account.  Database methods: With its help, database methods leverage data from social media, offline databases, and other sources and then verify them with the information that is submitted by the applicant. The entire process of digitalization may happen in a completely paperless format but it is not without human intervention. People are required to make this process work to help those that are availing of these services and also to reduce the pressure on the branches of the financial sectors.

Turn static files into dynamic content formats.

Create a flipbook
Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.