Know Your Customer (KYC) is the “process of a business identifying and verifying the identity of its clients”. KYC solutions are also used by banks and companies to ensure anti-corruption compliance and to confirm the identity of customers, agents or distributors.
What is KYC and why is it important?
In India, the Reserve Bank of India introduced KYC guidelines in 2002 for all banks and they were required to become compliant with these by 2005. KYC solutions are aimed at the prevention of money laundering by criminals or corrupt individuals and agencies through banks.
Banks adopt KYC solutions to also gain a better understanding of their customers and their financial profiles. This not only enables them to offer customised products for investment to customers but also to manage risks in a better way. KYC solutions are used in banks for accepting a new customer, identification of existing customers, transaction monitoring and the management of risks. KYC solutions are also adopted by businesses for whom it is the stepping stone for any kind of business relationship including onboarding of employees, loan approvals, partnership and so on. KYC solutions are also essential when seeking a financial product for the partnership or the company.
The different forms of KYC solutions include KYC, eKYC, and CKYC
• KYC is the process where the verification of a customer or investor is done based on written details submitted in a form and supported by in-person verification. Upon successful verification, the details are uploaded and maintained in the KRA Registration Agency (KRA).
• eKYC This is the electronic form of KYC that uses Aadhaar number for verification. Identity verification is done using OTP (one-time password) or biometrics and all information provided to the Aadhaar is used for validating information supplied by the candidate/applicant. This process is instant, paperless and cost effective!
• CKYC has been initiated by the Central Government of India which aims to simplify the KYC process by doing away with the need for multiple KYC formalities Aadhaar-based eKYC is the simplest and the quickest way to ensure the identity of business clients, employees or partners.
While traditional means of identity checks involve huge amounts of paperwork that need to be attested by Gazetted officers or bank managers, Aadhaar-based eKYC is done electronically with just an OTP generation.
Automation with API and eKYC to speed up verification
AuthBridge, being an authorized Authentication User Agency (AUA) with UIDAI, offers reliable KYC solutions through advanced APIs. Verifying name, date of birth, address, gender, mobile number, Aadhaar number and photo identity is quick and convenient through eKYC. Advanced APIs are applications that talk to each other and can be great time savers while also offering KYC solutions in a cost-effective manner. APIs make it convenient and easy to access information by duplicating information from other platforms for log-ins. APIs integrated with Aadhaar-based eKYC can make background screening processes smoother and faster. With no time and effort wasted in manual entries and huge amounts of paperwork or attestation, business processes can be streamlined whether for onboarding, creditor verification or partnerships.
Key benefits of using APIs and KYC solutions
• Background Verification without human intervention
• Real-time results
• Saves money and time
• No risks of errors that stem from manual entries which also helps avoid legal
• Saves the effort and time of HR professionals.
With AuthBridge’s KYC solutions, HR, Operations and on-boarding departments can now focus on other key activities instead of devoting huge amounts of time to carry out identity verification. APIs integrated with eKYC are components of comprehensive KYC solutions offered by AuthBridge that verifies details within minutes. KYC solutions with API integration can perform criminal litigation searches across all levels of courts.
Utility bills verification with phone, water, gas and electricity bills and property tax verification can also be carried out in the blink of the eye. With intelligent KYC solutions, employers’ trust can be strengthened in just one shot!