KYC Solutions & Its Merits

Increased relevance of KYC in the digital economy

The technology disruption has kept pace with the fast growth of start-ups, shared economies and larger businesses. As boundaries merge and businesses are increasingly going global, new customer bases are acquired. These necessitate faster and hassle-free recruiting, onboarding and partnering processes. Manually conducted Know Your Customer checks defeat the purpose of a fast and efficient business image, while also being low on accuracy. Paper-based proofs are, at times, forged or manipulated, resulting in false information. Multiple manual documents such as ID proofs, address proofs, licenses and so on need to be checked as part of KYC, which can be time-consuming and laborious.

Given the rate of growth of digital economies, the inherent risks of identity thefts and frauds are also on the rise. Information is shared on the public domains across multiple platforms. This makes sensitive data vulnerable to thefts and manipulations. Fake identities, digital forging, embezzlement and misrepresentation are some of the dangers of a digital economy.

According to a recent estimate, 77% of frauds in India relate to identity thefts. Close to 85% of fraud cases were related to identity thefts in the banking, credit cards, mortgage loans sectors in 2017. In the U.S., 15 million consumers were targeted by identity thieves to the extent of $16 billion in 2016 alone. KYC is the crucial link that connects businesses to a safe and risk-free digital economy.

Tackling the challenges of onboarding

Businesses in expansion mode need to onboard employees in multiple locations as needed. Since employees represent the business and interact with customers, it is critical to ensure the right person is employed. In this scenario, it is essential to ensure smooth KYC and on-boarding experience while ensuring adherence to strict Know Your Customer norms and filtering any fake applications out efficiently. KYC verifications are best entrusted to a third-party professional agency that specialises in identity verification and background verification. e-KYC is fast and discrete and provides a smooth onboarding experience for employees by cutting down on time. At the same time, the results of identity verification using e-KYC are accurate and prevent any fake applications.