Electronic Know Your Customer (eKYC) Solution
Financial service providers (likes Bank or Insurance) have a responsibility to identify their customers and understand the risks they pose before providing services. When prospective customers lack formal identification, or when their identification is difficult to authenticate, providers cannot easily verify their identities. On the customer side, lengthy or inconvenient onboarding procedures can deter potential customers from signing up for financial services.
Effective and efficient customer due diligence procedures can help address both constraints. On the supply side, they reduce compliance costs for providers. On the customer side, they accelerate account opening, facilitate mobile access, and make it easier to conduct transactions. In combination, these two effects can boost financial inclusion.
Know Your Customer (KYC) programs enable you to better understand the financial dealings of customers while managing and mitigating risk to your business. Earlier, banks, telecom, and other financial services providers were seeking photocopies of the customer’s original identity proof for performing KYC verification. In an attempt to reduce the ever-increasing regulatory burden and compliance cost, financial service providers should started using eKYC to verify their consumers.
Effective and efficient customer due diligence procedures can help address both constraints. On the supply side, they reduce compliance costs for providers. On the customer side, they accelerate account opening, facilitate mobile access, and make it easier to conduct transactions. In combination, these two effects can boost financial inclusion.
Know Your Customer (KYC) programs enable you to better understand the financial dealings of customers while managing and mitigating risk to your business. Earlier, banks, telecom, and other financial services providers were seeking photocopies of the customer’s original identity proof for performing KYC verification. In an attempt to reduce the ever-increasing regulatory burden and compliance cost, financial service providers should started using eKYC to verify their consumers.
eKYC Solution
eKYC is a process in which approved entities query a digital (and usually national) ID system to authenticate or verify their customers’ identities and, in some cases, retrieve basic information about them. eKYC systems can improve the onboarding process by reducing or eliminating paper-based procedures and record-keeping, which reduces cost and time spent on verification, making it more profitable to provide services to low-income customers.
There are various advantages using eKYC:
There are various advantages using eKYC:
- Paperless verification
- Cost-effective
- Prevents fraud
- Real-time identity verification
- Transparent
- Consent based to protect user privacy
|
|
|
Selindo Alpha provides eKYC solutions to reduce compliance costs and improve customer experience. Contact us for detail.