In many countries, Know Your Customer (KYC) and anti-money laundering (AML) require a KYC verification step solution to accomplish the identity verification process. Experts forecasted that from 2019 to 2027, the projection of growth in this market could be 14.6%. There are three compulsory steps are there in KYC verification which are:
- Document Validation
- Document Collection
- Data Extraction
Document collection steps include a collection of images of the passport or driving license or any utility bill required; that photo is uploaded electronically to the system. It is then the system’s responsibility to check whether the documents are complete, the image quality is acceptable, or if it’s blurry through the document checker.
Making these all present is the most important and necessary step to complete the verification process. Suppose anything is missing in the KYC verification or any document is incomplete. In that case, near-field communication (NFC) is often performed to complete that document.
Steps of KYC Verification System
After approval of the image, the next step is extracting data from the provided documents. The information provided manually by the user at the start of the interview is then compared to the documents provided physically to the system.
A personally identifiable information system compares this information, as it is considered the most authentic way to verify and compare the documents through a KYC verification solution. The system compares this document’s data to identity fraud watchlists to ensure that the user has not been involved in any criminal activity in the past.
KYC verification Features
Scanners also verify some barcodes on the documents to ensure that the printed data matches the information on the papers and that these papers are genuine, not forged.
If the document information does not match the government system’s data, the user’s application may be rejected, or they may be asked to provide authentic documents and accurate information as a second chance to prove their legality.
Documents Identification
While identifying the authenticity of the documents and validating them, some processing is needed first. This is a lengthy but necessary step in completing the KYC verification Solution process.
This includes checking special characters in passwords, all the needed information in the documents, and the validity of the records collected at the time of onboarding in the organization. CIAM stands for customer identity and access management security strategy, an advanced way of authenticating documents for years through the KYC verification Solution process.
Verify Documents Online
Nowadays, verification is now physically occupied. Experts have introduced Online verification methods that save time and increase the work quality by sharing human lives through machines. Many financial institutions use the KYC verification solution process as a must, which is:
- Credit unions
- Banks
- Lenders
- Thrift Institutions
- Brokerage firms
- Insurers
- Investment Firm
- Fintech companies
These companies, entrusted with significant financial transactions, place a premium safety feature on the security of their confidential data. To ensure this, they require a robust KYC verification Solution process.
Moreover, they must safeguard their employees’ working data, particularly those handling sensitive departmental information. Implementing an online KYC verification Solution process in their system offers numerous benefits, notably enhanced security and peace of mind.
Benefits of Online KYC Verification Solution
Several benefits are there of using an online KYC verification system, which is as follows:
- Accomplishing the Requirements
New users’ identities must be verified, and the documents required depend on the industry in which the organization works. For meeting regulatory requirements, the KYC verification Solution process is highly effective and widely accepted.
- Alleviate Misrepresentation at Working environment
Anything an association’s functioning space, you should be cautious enough not to be trapped in fake action, so you should go to preventive lengths to safeguard yourself from extortion.
- Laying out and Keeping up with Client Trust is Vital
Clients can unwind and feel more secure When they are sure that their information and individual data are secure. To prevent information leaks that could jeopardize customer trust, businesses must prioritize a robust KYC verification Solution system.
After all, the customer forms the backbone of an organization’s success.
- Speedily Manage the Process of Customer Onboarding
In many cases, the KYC verification step solution process can quickly complete. When paired with automation, this speed enhancement can advance and expedite onboarding processes. Manual reviews, which consume time, disrupt other operations, lack speed, waste time, and require involvement from teams in various departments.
Final Thoughts
Organizations need to take care of digital KYC verification solution very precisely. If there remains any issue during document verification, then completing the authentication process can be very difficult.