Identity verification

The banking industry is always tightening the reins to keep a balance between customer-friendly practices and regulatory compliance. Along with, taking stringent measures to combat all possible frauds the industry is prone to. These include money laundering and terrorist financing which are challenging for them to track and avoid within the premises of an organization. Also, identity theft, data breaches and several forms of cyberattacks can harm the reputation of banks. 

Recognizing the possible vulnerabilities, banks are all active to take in place measures that collectively contribute to the goal of fraud elimination from an industry. Customer’s data and organization’s norms safety is the ultimate goal of banks. To achieve it, banks are in the need for digital and innovative solutions that keep them a step ahead of fraudsters whoa re continuously looking for possible opportunities in the system to exploit. Know Your Customer (KYC) for banks is mandatory to perform. It is crucially important to know what nature of people is trying to take advantage of the banking industry, for which purpose and how.

 

What is KYC Verification?

 

KYC verification includes the processes through which an identity is identified and verified. It makes sure that the entity is honest, is the resident of a particular region and is not using the bank as a source of criminal activity. KYC has the potential to serve the purpose of safeguarding the banking sector. With the millions of customers spread all over the region, the possibilities of attacks also rise. The system should be strong enough to encounter such challenges. This can be done through both hardware and software security. Particularly focusing on software security means that the KYC process is mandatory for banks. To avoid digital scams, use digital means to fight against them.

 

How Online KYC has got Banks Covered?

 

The traditional banking norms have become very frustrating. These can be replaced by an automated KYC solution which includes digital identity verification. Now instead of manual document verification, face and biometric verification, with online KYC, identity can be verified efficiently within seconds. In real-time now customer can be verified and open an online account. Verification does not only include an identity card but supporting shreds of evidence are attached which are verified. And if authentic, are forwarded with further processing.
Now the question arises that what if the user on another side provides your system with fake documents?

  • Digital identity verification makes sure that any uploaded document is not forged, tampered or photoshopped in any way. Using a hybrid approach to Artificial Intelligence (AI) and Human Intelligence (HI), banks ensure identity verification. 
  • Biometric authentication is also done through fingerprint scanning and face verification. By capturing the facial features of a human face, information is stored in the database which is verified when needed. Face verification is done which includes a feature of liveness detection. Before the camera, identity would have to prove through movement that it is a live picture, not a previously taken selfie or a printed face in front of the camera. 
  • Similarly, document verification is done. Recognizing the type of document which could be an id card, passport, driving license or government-issued official documents, based on the district and region specified a template, digital verification solutions verify them. After that, run the spoofing test to detect if some information or evidence is spoofed in any way. 

 

All these are digital KYC methods to which banks are all set up to opt. The aforementioned methods explicitly adhere to the purpose of KYC verification and will be replacing all standards of banks with digital solutions. Digital KYC services in banks will be revolutionizing recognizing its need in the banking industry.

 

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