KYC, or Know Your Customer, is a must in the world of
business. It's not enough to know the person's name and address anymore; you need to know their
personal details like occupation, family ties, etc. This can be difficult for some people who are dealing with simple paperwork, but what about those who don't have time or access? Luckily there are now ways to get KYC done online! In this post we'll explore how eKYC can help simplify
customer onboarding
processes in
financial institutions and other
businesses.
What is eKYC?
eKYC stands for Electronic Know Your Customer. This is an online process of authenticating an
individual's
identity online based on data from government-issued
IDs and other sources, such as
digital identities (eIDs). eID authentication can be done via certified
ID cards or facial recognition if the person has been previously authenticated by the issuing
authority. OCR mode refers to capturing information from
IDs, the extraction of
digital data from government-issued smart
ID cards with a chip.
Benefits of eKYC
It saves time and resources because there is no need for scanners or hard copies of relevant
documents like passports or
driving licenses; all that is required is an internet-connected device. It's even easier if the
customer already has a certified
digital ID which they can use to eKYC themselves, meaning that no extra
documents are needed through the online process.
There is less chance of fraud because you know for sure with
identity proof, that you're dealing with the right person and not an imposter who could swipe their credentials at any point in time.
KYC is not just for the
financial institutions who want to know more about their
customers opening
bank accounts, it's also a must-have for freelancers and
businesses looking to hire someone. Startups can use eKYC as well so they know that all of their new hires have gone through this verification process before starting work with them.
For remote workers, eKYC means they can work from anywhere at any time, without having to worry about what their office is like. It also eliminates the need for physical
ID cards and the instant authentication works on laptops or smartphones that are connected to a reliable internet connection.
What are the documents required to get eKYC done?
Information from government-issued
IDs, such as a passport or
driving license. Other sources of
identification may also be used, such as an eID card or
digital identity with facial recognition if the person has previously been authenticated by the issuing
authority. A device that is connected to internet and can process data in order to establish authenticity.
The steps for how to get KYC done online:
This process is easier if the
customer already has a certified
digital ID, and it can be completed by scanning or photographing their
documents with an internet-connected device. The eKYC system will then automatically extract data from these images to establish authenticity of
identity. Once this is complete, they are ready for onboarding.
KYC is mandatory for
financial institutions and is an essential part of any
business, and now there are ways to get it done without having to go through the usual steps. eKYC simplifies
customer onboarding
processes by taking care of everything digitally in a matter of minutes, but know that this only works for those who have been authenticated first!
