September 6, 2024

BFSI

The 11 Best KYC Service Providers

The demand for seamless and secure Know Your Customer (KYC) processes is at an all-time high as businesses and financial institutions strive to enhance customer onboarding, compliance, and fraud prevention. The evolution of KYC solutions in India has paved the way for advanced technologies like eKYC, digital KYC, and biometric verification, making customer authentication faster, paperless, and more reliable. From Aadhaar-based KYC and PAN card integration to AI-driven facial recognition and e-signature solutions, the environment is quickly transforming.

This blog explores the best KYC solution providers (Softwares/Platforms) in India, highlighting the top KYC providers, innovations like paperless KYC and biometric KYC, and how they are addressing critical needs in KYC compliance, risk management, and fraud prevention. Whether you’re a business looking to streamline your customer verification process or seeking AI-based KYC and ML-powered solutions, this comprehensive overview will provide valuable insights. Here are the top KYC service providers in India:

AuthBridge

AuthBridge is a comprehensive KYC service provider that caters to businesses across various industries by offering efficient, scalable, and tech-driven verification solutions. It stands out for its wide range of eKYC options, use of Aadhaar-based verification, and industry-specific tools that prioritize fraud prevention and regulatory compliance.

Key Features Of AuthBridge’s KYC Solutions:

eKYC: AuthBridge provides an electronic KYC (eKYC) process that significantly reduces the time, cost, and effort involved in manual verification. Their eKYC platform integrates Aadhaar-based verification and OTP-based authentication, ensuring quick and accurate customer onboarding.
Aadhaar-based Verification: With seamless integration of the Aadhaar database, AuthBridge enables businesses to verify the identity of customers in real-time. This Aadhaar-based KYC process ensures compliance with Indian regulations, especially for financial institutions.
Video KYC: In compliance with the RBI guidelines, AuthBridge offers a Video KYC feature that facilitates remote identity verification. This solution is particularly useful for banks, fintech, and NBFCs looking to onboard customers without physical interaction.
AML & Fraud Prevention: To help businesses mitigate the risk of fraud, AuthBridge integrates Anti-Money Laundering (AML) checks with KYC processes. Their fraud prevention tools analyze various data points to flag suspicious activities during the customer onboarding process.
API Integration: AuthBridge’s KYC solutions are highly scalable due to their easy API integration. This makes it simple for businesses to incorporate KYC verification into existing workflows without major disruptions.
Comprehensive KYC Reports: Businesses using AuthBridge have access to in-depth KYC reports, offering clear insights into customer identities. These reports provide valuable data, allowing companies to make informed decisions regarding customer engagement and risk management.
Compliance with Regulatory Standards: AuthBridge ensures that its services are aligned with Indian laws, such as the Prevention of Money Laundering Act (PMLA) and RBI guidelines. Their solutions are designed to meet regulatory standards, reducing the compliance burden on businesses.

Benefits Of Choosing AuthBridge for KYC:

Faster Onboarding: With digital KYC processes such as eKYC and Video KYC, businesses can onboard customers within minutes.
Cost-Effective: Reducing the dependency on physical documentation lowers operational costs for businesses.
Enhanced Fraud Detection: The incorporation of AML checks and fraud detection algorithms reduces the risk of identity theft and money laundering.
Wide Industry Application: AuthBridge serves various industries including BFSI, eCommerce, telecom, healthcare, and more.
Scalability and Flexibility: The solutions can be customised based on the size and requirements of the business.

Use Cases Of AuthBridge KYC Solutions:

Banking and Financial Services: Banks and NBFCs use AuthBridge’s KYC services to meet compliance requirements and reduce the onboarding time for new customers.
Insurance: Insurance providers leverage eKYC and Aadhaar-based verification to quickly verify policyholders.
Telecom: Telecom companies ensure quick customer verification with eKYC to comply with the government-mandated KYC norms.
Healthcare: Healthcare companies use KYC solutions for patient verification to prevent fraud in medical services and insurance claims.

AU10TIX

AU10TIX offers a global, fully automated identity management solution that handles every aspect of the verification process. With advanced technology designed to combat emerging threats like deepfakes, AU10TIX provides fast and scalable identity verification for both new and existing customers, without any human involvement. Its system processes documents from over 190 countries, including non-Latin characters, and continuously updates them to enrol new document types. Trusted by leading brands since 1982, AU10TIX has a proven track record of protecting businesses, verifying identities, and fighting fraud through its comprehensive identity management solutions.

Comply Cube

ComplyCube is a comprehensive platform designed to automate and simplify Identity Verification (IDV), Anti-Money Laundering (AML), and Know Your Customer (KYC) compliance. It provides businesses with versatile AML/KYC tools to quickly verify customers while mitigating fraud risks. Known for its rapid omnichannel integration, ComplyCube offers a range of integration options, including Low/No-Code solutions, APIs, Mobile and Web SDKs, client libraries, and CRM integrations, making it adaptable to various business needs and infrastructures. This flexibility helps businesses enhance their compliance processes efficiently.

Jumio

Jumio is an AI-driven platform that allows users to verify their identity remotely, helping protect businesses against fraud and financial crimes. The Jumio KYX Platform provides a comprehensive suite of identity-proofing services, ensuring trust from initial account opening through ongoing transaction monitoring. By utilizing advanced technologies such as AI, biometrics, machine learning, liveness detection, and automation, Jumio enables organizations to combat fraud, onboard legitimate customers quickly, and stay compliant with regulations like KYC, AML, and GDPR. Jumio has verified over 300 million identities from more than 200 countries and territories in real-time web and mobile transactions, making it a trusted solution across industries like financial services, digital currency, retail, travel, and online gaming.

KYC Hub

KYC Hub provides an all-in-one digital verification platform designed to streamline KYC compliance with real-time identity verification across 190+ countries and 3,000 document types. The platform integrates AI-powered document authentication, biometric checks, and video KYC to enhance security and fraud detection. Its customizable workflows and seamless integration with APIs and SDKs reduce onboarding times and costs while ensuring compliance with Indian regulatory standards, including RBI and SEBI guidelines. Widely used in banking, fintech, and e-commerce, KYC Hub offers scalable, efficient, and secure solutions for businesses.

North Row

NorthRow simplifies onboarding, customer remediation, and regulatory compliance with a fully managed, low-tech service that optimises due diligence. Its configurable, single API solution allows businesses to easily integrate and tailor the platform to their specific requirements, ensuring smooth operations. NorthRow combines AML and KYC tools, providing a unified solution that improves compliance, enhances the customer experience, and supports faster business growth, all while streamlining customer onboarding and monitoring processes.

Ondato

Ondato is a comprehensive digital compliance platform that enables businesses to meet the latest KYC (Know Your Customer) and anti-money laundering (AML) regulations seamlessly. With solutions ranging from identity verification to case management, due diligence, and screening, Ondato ensures full regulatory compliance with minimal risk. It’s an essential tool for businesses in the digital space, reducing the chances of fines, maintaining a zero-tolerance approach to fraud, and delivering cost savings of up to 90% on traditional compliance expenditures.

Onfido

Onfido simplifies the complex process of digital customer acquisition and identity verification, ensuring seamless compliance with KYC and AML regulations across all regions where your business operates. Onfido helps businesses connect authentically with customers while maintaining regulatory standards. A key highlight is the launch of Onfido’s Real Identity Platform in 2022, aimed at making identity verification more intuitive, efficient, and intelligent. This platform integrates trusted data sources, biometric verifications, and fraud detection signals to provide a comprehensive and reliable identity verification solution.

Shufti Pro

Shufti Pro leverages a combination of artificial intelligence and human intelligence to deliver seamless, automated verification solutions. Offering multi-layered protection against digital identity fraud, money laundering, and terrorist financing, Shufti Pro performs verifications in just 30-60 seconds. Its services are available in over 230 countries and support more than 150 languages. Businesses use Shufti Pro for identity verification to meet KYC, AML, and KYB requirements, enhancing the security and efficiency of their customer onboarding processes.

Sumsub

Sumsub is a comprehensive verification platform that secures every step of the user journey. Its KYC/AML software offers customizable verification flows, ensuring top pass rates while maintaining strict compliance. With Sumsub’s KYC solution, businesses can streamline their verification process, expand their global reach, reduce costs, and enhance security. The platform supports ID verification, database validation, biometric checks, proof of address, non-document verification, and AML screening. Sumsub boasts industry-leading conversion rates—91.64% in the US, 95.86% in the UK, and 97.89% in Hong Kong—while completing verifications in under 50 seconds on average. Trusted by over 2,000 clients across fintech, crypto, transportation, trading, e-commerce, and gaming industries.

Veriff

Veriff uses cutting-edge technology to simplify and enhance KYC processes, incorporating AI to bring greater precision and transparency to onboarding. This allows businesses to swiftly detect fraud and make real-time adjustments. Veriff’s automated, customer-centric approach leads to higher fraud prevention rates and faster customer conversions, benefiting both businesses and consumers. One of its standout features is advanced facial recognition and assisted image capture, which not only secures customer accounts but also boosts account holder conversions by replacing outdated authentication methods and providing a safer environment for users.

By Abhinandan, 2 weeksSeptember 6, 2024 ago

Customer Onboarding

PAN Card Based KYC: Online And Offline Methods

Introduction

As the financial landscape in India rapidly embraces digitalisation, the importance of Know Your Customer (KYC) compliance has become more important than ever. KYC regulations, mandated by the Reserve Bank of India (RBI) and the Securities and Exchange Board of India (SEBI), ensure financial institutions have a clear understanding of their customers’ identities and risk profiles. This helps combat money laundering, terrorist financing, and other financial crimes.

While various documents contribute to KYC verification, the Permanent Account Number (PAN) card stands out as a benchmark. This blog delves into the critical role of the PAN card in KYC compliance, exploring its functionalities, benefits, and overall process.

What Is KYC?

Know Your Customer or KYC refers to a set of regulations requiring financial institutions to verify the identity and address of their customers. This verification process typically involves two key steps:

Customer Identification: Customers provide documents proving their identity (proof of identity – POI), address (proof of address – POA), and date of birth (DOB).
Risk Assessment: Based on the collected information, the financial institution assesses the customer’s risk profile for potential financial crimes.

Importance Of KYC Compliance

KYC compliance offers several benefits to both financial institutions and customers:

Prevents Money Laundering and Terrorist Financing: KYC helps deter criminals from using financial platforms for illegal activities.
Mitigates Fraud Risk: Verifying customer identities helps identify and prevent fraudulent activities like identity theft and account takeover.
Enhances Customer Experience: Efficient KYC processes can streamline account opening and transaction approvals, leading to a smoother customer experience.
Promotes Financial Inclusion: Robust KYC processes can create a more secure environment, encouraging broader participation in the financial system.

Statistics On KYC Compliance In India

KYC (Know Your Customer) compliance in India has grown significantly, driven by regulations from the Reserve Bank of India (RBI) and the Securities and Exchange Board of India (SEBI). The rise in digital financial services has also accelerated KYC implementation across banking, fintech, and investment sectors. Here are some key statistics and insights related to KYC compliance in India:

1. Growth of Digital KYC

2020-2021: The digital KYC verification market saw rapid adoption, particularly during the COVID-19 pandemic. Many banks and financial institutions transitioned to eKYC, driven by the need for contactless services.
eKYC Transactions: As per reports, over 2 billion eKYC transactions were recorded between 2020-2021 in India. The adoption rate continues to rise, with increased financial inclusion and digital banking services.
Aadhaar-Based eKYC: Aadhaar-based eKYC continues to dominate. As of March 2023, more than 1.4 billion Aadhaar-based eKYC verifications had been conducted.

2. RBI Mandates and Compliance

Mandatory KYC for Banking: The RBI has made KYC compliance mandatory for all banking services in India, including opening accounts, applying for loans, and carrying out large transactions.
Penalties for Non-Compliance: Banks and financial institutions are subject to strict penalties if they fail to comply with KYC norms. In 2021, the RBI imposed penalties on 14 banks, including major players like SBI and ICICI Bank, for KYC non-compliance.
PMLA Guidelines: KYC is also enforced under the Prevention of Money Laundering Act (PMLA) to combat fraud, money laundering, and terrorism financing.

3. Financial Inclusion Through KYC

Jan Dhan Accounts: The Pradhan Mantri Jan Dhan Yojana (PMJDY), aimed at financial inclusion, has made KYC essential for opening accounts. Over 480 million Jan Dhan accounts were opened by 2023, with many using Aadhaar-based eKYC for quicker access.
KYC for Mutual Funds and Investments: SEBI mandates that all mutual fund investors must complete KYC through a KYC Registration Agency (KRA). By 2023, nearly 100% of new mutual fund investments required KYC compliance.

4. Challenges in KYC Compliance

Rural Areas: While digital KYC processes have eased urban compliance, nearly 30-35% of India’s rural population still faces challenges with access to digital infrastructure and documentation, leading to delays in KYC completion.
Fraudulent Activities: Despite the robust KYC framework, a 15% rise in financial fraud was reported in sectors like banking and fintech in 2022, indicating the need for continuous improvements in KYC verification methods.

The PAN Card: Key Details

The PAN card issued by the Income Tax Department of India serves as a vital document for KYC compliance for several reasons:

Universally Recognized Proof of Identity: As a government-issued document, the PAN card is widely accepted as a reliable proof of identity across various sectors in India.
Unique Identification Number: Each PAN card holder is assigned a unique 10-digit alphanumeric identifier. This unique identifier allows for easy verification against official records maintained by the Income Tax Department.
Nationally Valid Document: Unlike some regional identification documents, the PAN card holds validity across India, making it a suitable option for KYC purposes regardless of the customer’s location.
Link to Financial Information: The PAN card is often linked to a customer’s tax information. This linkage can provide financial institutions with additional insights for risk assessment during KYC verification.

Table 1: Key Features of PAN Card Supporting KYC Compliance

Feature	Description	Benefit for KYC Verification
Universally Recognized Proof of Identity	Government-issued document widely accepted for identity verification.	Ensures reliability and authenticity of customer information.
Unique Identification Number	10-digit alphanumeric identifier assigned to each PAN card holder.	Enables easy verification against official records.
National Validity	Valid across India regardless of location.	Suitable for KYC purposes irrespective of customer’s geographical location.
Link to Financial Information	Often linked to a customer’s tax information.	Provides additional insights for risk assessment.

Benefits Of Using PAN Card For KYC Verification

There are several advantages associated with using your PAN card for KYC compliance:

Simplified Process: Since the PAN card is widely accepted as a KYC document, the verification process can be faster and more efficient. Many financial institutions have established streamlined processes for KYC verification using PAN cards.
Reduced Paperwork: By using your PAN card, you may need to submit fewer additional documents for identity verification. This reduces the burden of document collection for both you and the financial institution.
Enhanced Security: The PAN card system incorporates security features to help prevent fraud and misuse. These features include tamper-proof lamination and unique identification numbers, making it difficult to counterfeit or misuse PAN cards.
Universal Acceptance: You can utilize your PAN card for KYC compliance across various financial institutions in India, including banks, investment firms, insurance companies, and online payment platforms. This eliminates the need to carry or submit different documents for different institutions.

Documents Required For KYC Along With PAN Card

While the PAN card plays a significant role, it’s often used in conjunction with other documents during KYC verification. Here are some commonly requested documents in addition to the PAN card:

Proof of Address (POA): Documents like an Aadhaar card, Voter ID card, utility bills (electricity, water, telephone) not older than three months, passport (for foreign citizens), etc., can serve as proof of address.
Photograph: A recent passport-sized photograph is usually required for KYC verification.
Additional Documents (Depending on the Institution): In some cases, financial institutions may request additional documents such as bank statements, salary slips, investment proofs, or business registration documents (for businesses) for a more comprehensive risk assessment.

Table 2: Common Documents Required Alongside PAN Card for KYC Verification

Document Category	Examples	Purpose
Proof of Identity (POI)	PAN Card, Aadhaar Card, Voter ID Card, Passport (for foreign citizens)	Verifies the customer’s identity.
Proof of Address (POA)	Aadhaar Card, Voter ID Card, Utility Bills (electricity, water, telephone) not older than three months, Passport (for foreign citizens)	Verifies the customer’s residential address.
Photograph	Recent Passport-sized Photograph	Captures the customer’s likeness for verification purposes.
Additional Documents (Optional)	Bank Statements, Salary Slips, Investment Proofs, Business Registration Documents (for businesses)	Provides further details about the customer’s financial profile and risk assessment.

PAN Card KYC Offline Process Steps

The offline process for completing PAN Card KYC is simple and involves submitting physical documents to the relevant authority. Here’s a step-by-step guide:

Download and Fill the KYC Form
Visit the official website of CDSL Ventures or the financial institution you’re dealing with and download the KYC application form. Fill in all the required details, including personal information like name, address, and PAN number.
Attach Required Documents
Along with the filled KYC form, you must submit photocopies of the following:
- ID Proof: PAN card, passport, voter ID, or driver’s license.
- Address Proof: Recent utility bills (like electricity or phone), bank passbook, ration card, or rental agreement.
- Passport-size Photograph: A recent photo needs to be attached to the form.
Submit the KYC Form
Submit the completed form along with the necessary documents to the relevant financial institution or mutual fund intermediary. Ensure that the documents are self-attested before submission.
Verification
Once submitted, the documents will undergo a verification process by the concerned authority. This might include a representative physically verifying your information.
Completion
After the verification process is complete, you will receive confirmation that your KYC has been successfully registered. You can now conduct financial transactions using your PAN card.

PAN Card KYC Online Process Steps

The online process for completing PAN Card KYC is convenient and can be done from the comfort of your home. Here’s a step-by-step guide to help you through the process:

Visit the KYC Registration Agency (KRA) Website
Go to the official website of any SEBI-registered KRA, such as CAMS, CDSL Ventures, or NSDL. These agencies store and verify KYC information for financial transactions.
Select the eKYC Option
On the KRA website, select the option for “eKYC” or “KYC Registration.” Some websites may also have an option specifically for “KYC using PAN Card.”
Enter PAN Card Details
Fill in your PAN card number and other basic details like your full name, date of birth, and email ID/mobile number. This information is used to verify your identity.
Submit OTP for Verification
After entering your details, you will receive a One-Time Password (OTP) on your registered mobile number (linked to your Aadhaar card). Enter the OTP to verify your identity.
Upload Required Documents
You will need to upload scanned copies of the following documents:
- ID Proof: PAN card (mandatory)
- Address Proof: Aadhaar card, passport, voter ID, or any other valid address proof.
- Passport-size Photograph: A recent photograph in digital format.
Complete Video KYC (if required)
Some KRAs may require you to complete a short video verification process to further validate your identity. This can typically be done using your smartphone or computer with a camera.
Submit the Application
Once all the details and documents are uploaded, review the information and submit the form.
Track KYC Status
After submission, you can track the status of your KYC verification by visiting the same website and entering your PAN details. The status will show as “Verified” once the process is successfully completed.

Additional Tips:

Ensure your mobile number is linked with your Aadhaar card as it’s required for OTP verification.
Double-check all document scans for clarity before uploading.
The process typically takes a few days, but can be faster depending on the KRA.

By Abhinandan, 2 weeksSeptember 6, 2024 ago

Employee Screening

Risk & Compliance

Financial Intelligence

Identity Verification

Utilities

Entity/Business Level

Employment

Banking & Payments

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Background Verification

Due-Diligence

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What's New

iBRIDGE 2.0 – The Next-Gen Background Verification Platform

Resource Library

Featured Resource

AuthBridge

Key Features Of AuthBridge’s KYC Solutions:

Benefits Of Choosing AuthBridge for KYC:

Use Cases Of AuthBridge KYC Solutions:

AU10TIX

Comply Cube

Jumio

KYC Hub

North Row

Ondato

Onfido

Shufti Pro

Sumsub

Veriff

Introduction

What Is KYC?

Importance Of KYC Compliance

Statistics On KYC Compliance In India

1. Growth of Digital KYC

2. RBI Mandates and Compliance

3. Financial Inclusion Through KYC

4. Challenges in KYC Compliance

The PAN Card: Key Details

Benefits Of Using PAN Card For KYC Verification

Documents Required For KYC Along With PAN Card

PAN Card KYC Offline Process Steps

PAN Card KYC Online Process​ Steps

Additional Tips:

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PAN Card KYC Online Process Steps