KYC, or Know Your Customer, compliance is not a choice for businesses that operate in financial and allied sector. Consumers are well-aware of KYC compliance, but considering that the process requires physical papers and considerable effort on their part, many are likely to skip services. No wonder, the number of KYC dropouts has only increased with time, but with digitization, businesses can finally have a tested means to enhance customer experience in terms of onboarding. Digital identity verification is a reality, and in this post, we are discussing more on aspects that businesses need to pay attention to.
What is digital KYC?
As the name indicates, digital KYC is about verifying relevant details of a customer instantly. This is the immediate and fastest way to validate the identity details, such as name, address, email address and phone number. In fact, this is a new industry altogether, and there are companies that specialize in digital KYC APIs, empowering companies around the globe. With digital KYC, you are not missing out on any aspect, and yes, AML / FINTRAC compliance is taken care of. Real-time identity verification enables brands to acquire, engage and retain customers.
The need for a shift
Digitization of KYC was certainly a matter of time. KYC verifications have been a challenge for businesses, and users often were frustrated with the confusing paperwork that entailed for every service. Not to forget, document forgery and loss & misplacement of KYC documents have been reported time and again. With digital KYC, things move faster and in a much more secure and safer environment. Yes, there are critics, who have discussed the implications of digital theft, but with new-age systems and compliant KYC APIs, the risks are minimalized. End users are more likely to sign up for your services and follow the KYC norms, if they can do things online. The best APIs use user’s bank account as a source, so the validation is instant and accurate, leaving no room for erroneous entries, which are otherwise common with manual work.
Businesses must adopt and accept the way technology has been changing processes and financial transactions, and in that regard, digital KYC is the need of the hour and has been adopted by brands worldwide. All you need is a reliable KYC API that’s secure, safe and is backed by solid support from the parent company. Don’t forget to check the clientele of a service before you select their API.