Tuesday, May 30

Digital KYC Combined with Human Touch – Perfect for Protecting Your Business


The world has changed in recent years, and the digital age has changed customer trends. Smartphones, computers on every corner, and interconnected devices everywhere have connected all of us. If you’re in a profession that requires AML regulations, the effect of digitization is also an important factor to consider. AML compliance is crucial for detecting and preventing money laundering.

When it comes to money laundering, the rise of new technologies has helped fraudsters and criminals to create fraud identities and synthetic identities. ID fraud can be done using creating fake identities or using stolen ID data for creating synthetic identities. The changes in industry trends have shown that fake identities are the most commonly presented information during an account opening, customer sign up, or signing up for any new service. These identities are created in such a way that they’re harder to distinguish between.

Although the rise in technology hasn’t just helped fraudsters, it has also led to technologies that help detect and eliminate fraud. Certain technologies can help in complying with KYC and AML regulations. EID verification offers a range of checks in this digital era, including identity documents and verifying fraud identities against multiple databases.

What Is eKYC?

Know Your Customer (KYC) must be a familiar term for anyone who’s ever tried to open a bank account. eKYC (Electronic Know Your Customer) is taking the traditional process of KYC and implementing digital solutions online.

KYC process helps businesses in verifying customer identity. The process consists of many checks implemented in the first stage of a business relationship to verify that the customers are who they claim to be. eKYC is the term used to describe the digitization of the KYC process. eKYC is a remote, paperless process that helps businesses reduce costs and cut down on time taken by traditional KYC.

The use of fake identities and identity theft is pretty common in all kinds of industries. Businesses that operate around technology and financial services rely on secure eKYC processes to verify customer identity and eliminate fraud.

eKYC is done using several online documents provided by the customers. The identification and verification of the customer are done instantly with eKYC technologies. One of the biggest reasons customers leave the sign-up process is that they take too long. With the eKYC process, businesses can increase their conversion rate by more than 50%. Most eKYC processes follow strict guidelines set forth by AML5 directives.

What’s The Need for Combining Human Touch with eKYC verification?

Since identity theft and fake documents became a huge issue, smaller businesses have used physical methods of document verification to comply with KYC regulations. Several businesses have done KYC this way for a long time. Early AML directives did not specify electronic customer verification as a reliable method. With the launch of the 5th Anti-Money Laundering directive, it was clear that eID verification can be used as a method of ID verification.

Now that the customer trends are changing, the demand is for fast and seamless solutions. Customers need online remote onboarding and verification solutions. Digital verification of documents and customer IDs is becoming more streamlined, and it helps businesses to comply with regulations and reduce frauds. One of the best things about constant technological advancement is that now the eKYC technologies are easily accessible by a smaller business.

Smaller businesses have close relationships with customers, and for them, it is easier to detect red flags, inconsistencies, and fraudulent transactions. Businesses of all scales can benefit from using technologies to detect and reduce fraud. Digital document and customer verification removes the risk of human error and helps in determining if a document is real or not. Digital solutions on their own aren’t perfect, too, as AI-based verification solutions don’t offer accurate results all the time too. So combining the human touch with technology offers an additional layer of protection against fraud.

How to Find the Ideal Digital Solutions?

Combining human experience and digital KYC ID checks based on a series of documents is the best method for verifying identities. With the right digital solutions and online verification methods, businesses can strengthen themselves against fraud. Weak digital solutions with lots of weak points can cause more problems for businesses instead of benefits. Fraudsters can easily exploit these weak points and gain access to a business’s internal systems.

Solutions that cannot accurately verify identity and customer documents will pose a huge threat to businesses. Solutions need to be able to comply with AML regulations. Regardless of business type, digital verification solutions can help in reducing fraud of all kinds.

One such technological solution is DIRO’s online document verification solution. The technology can help businesses verify customer documents instantly. It can verify 7000+ documents from all over the globe. DIRO verifies documents like a bank statement, driver’s license, tax return documents, insurance documents, employment data, student records, and more.



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