Digital identity solutions – Know Your Customer (KYC) in the digital age

What is KYC?

KYC-Know Your Customer

The acronym, KYC, stands for Know Your Customer and it refers to the verification process of the identity of a client in compliance with legal requirements and current laws and regulations.

How does KYC work?

The KYC verification procedure can be carried out through several methods, both remotely, online, and in-person at the organisation’s headquarters. When the process has been digitized and it’s done online, we talk about an eKYC process, with Video Identification by streaming video and videoconferencing, in which the user shows and validates his identity documents, their authenticity, and their facial appearance, in addition to other biometric tests and security checks.

In the banking and financial services industries, the KYC process is the same as in the other industries, but the high-security standards required by legislation are different from those required for other organisations. Standards such as 5AMLD and eIDAS rules were set to create a reliable framework where KYC processes are completely secure.

Also, video-streaming is becoming the global standard for identifications within the financial sector and it is being included and standardized by regulators.

How can KYC help you?

KYC compliance has a huge impact on how organisations enable customers to open accounts and perform financial transactions on their preferred device, for financial services companies, in particular.

A series of controls is applied to avoid having commercial relations with people that could be related to terrorism, corruption, or money laundering, among others.

How can KYC help in the Onboarding Process?

Customer onboarding has changed from a long and bureaucratic process to an optimized, more secure, and quick process. This way, 3 weeks have turned into 3 minutes with the highest security standards from any electronic camera device.

Video Call Feature · finalizing KYC in a Digital Onboarding for Banking solution

Considering all the validations and checks run so far, customers can complete the onboarding flow within a live video call. In this scenario, they will be directed to a video call and engage with a call centre operator.

Customers can be informed before the call begins, that they:
  • can start the call immediately or postpone for later by resuming the process via an e-mail link within 30 days, from the step they dropped;
  • will be taken over by an operator in the next minutes, depending on the availability of the call centre operators who can be engaged in other calls

During the video call, the customer will be in a dialogue with the call centre operator and may be asked to confirm their information, answer a set of randomly generated queries or to perform some generic actions so that Bank ensures that it is not a pre-recorded call.

The call centre agents and administrators will be able to manage and supervise the onboarding flow within a digital portal to track performance, measure feedback from customers and interactions.

If the additional checks and validations are passed successfully and the operator validates the KYC process, the call closes and the necessary documents are being generated for the customer to sign them.

How can Encora help you?

To help delivery a leading-edge KYC process, you need a real-time online ID and identity verification solution that can deliver both conveniences to your customers and ensure protection for your organisation.

Our KYC platform allows you to integrate the complete digital identification of business and customers into the sign-up process via API while being fully compliant with current legislation.

Learn more about our Digital Onboarding Software Solutions and how we can help you.

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