Digital KYC Solution for Identity Verification
Our image-based Digital KYC enables end-to-end seamless customer onboarding journeys through AI-powered facial recognition, liveness detection, OCR, and geo-tagging technologies, adding speed and scale to your customer onboarding process
Trusted by 2,000+ companies
Intelligent KYC solutions to digitize your onboarding and authentication processes
Truly Digital Solution in Every Sense
Realtime Identity Verification
Selfie backed Liveness Check, Face Match Score against NIDs and
Geo-coding based digital address verification
Hassle Free
Integrations
Integrable with LOS/LMS/CRMS
via API and SDK based integrations
with API documentation and developer support
Secure and Compliant Processes
Take and manage customer Consent with ease and Mask Sensitive customer data with an ISO 27001 compliant solution
Process of Digital KYC Verification
AuthBridge's Digital KYC Solution
Give your Customers a Seamless Onboarding and Verification Experience
Step 1
Mobile Number Verification with OTP and consent based verification
Step 2
Capture Selfie for Liveness Check and get a match score
Step 3
OCR enabled POI/POA Verification to auto extract Identity and address details
Step 4
Successful Customer Identification and KYC acceptance/rejection
AI to make Digital KYC contactless
Leverage the power of artificial intelligence and machine learning to create real-time, contactless onboarding journeys. Enhance your customer experience and scale up faster with our KYC Solutions.
Cost Optimization
Reduced costs, customizable workflows, compliant process
Our Digital KYC product enables instant verification with the power of AI, ML, and deep search algorithms ensuring the fastest onboarding process for your customers, reduced operational costs, helping your organisation scale up at speed. Our Digital KYC comes with customizable workflows so you can create your industry-specific KYC journeys. Our Digital KYC product is data-security compliant and ensures complete adherence to the latest RBI guidelines.
Security Compliant
SEBI, RBI Adherence
Data
Privacy
Fewer KYC Dropouts
Reduced customer application dropout rates with Digital KYC
Traditional KYC involved cumbersome paperwork that led to higher drop-out rates in customer onboarding. Our Digital KYC solution makes the process completely digital, eliminating paperwork completely, making the whole journey contactless, enhancing your customer experience, thus reducing your customer drop-out rates significantly.
Minimal Drop Outs
Contactless KYC
No Paper Work
No More Identity Frauds
Accurate face match percentage, liveness detection to catch identity frauds
Our AI-powered image recognition and liveness detection technologies use biometric anti-spoof algorithms to test the genuineness of the image taken and matches it with valid ID proof, ensuring that an entity is who they say they are. Get notified each time there is a skewed, blurry or disoriented image right at the beginning of the onboarding process so that you can catch discrepancies and potential identity thefts with AI-powered high-quality image processing
Face Match Check
Name Match Check
Address Match
Remote Onboarding
Easily Onboard customers from remote locations
Digital KYC has a higher scope and much better customer reach because the entire process is contactless. This means anyone with Aadhar card and the registered mobile number can perform our Digital KYC remotely. This is especially helpful in achieving a wider customer reach in rural areas where access to banks and financial institutions is relatively lower than in urban areas. , It helps you save operational costs by up to 70% and onboarding time by up to 90%. Banks, NBFCs, mutual funds, insurance, logistics, telecom companies, mobile wallets, and P2P marketplaces can use Digital KYC for seamless customer onboarding journeys.
Mobile Verification
Aadhaar Verification
Pan India Support
Top Instant Verification APIs used by our Clients for KYC services
Instant verification and onboarding with API based KYC services
Aadhaar Card Verification API
PAN Card Verification API
Voter Card Verification API
Passport Verification API
Driving License Verification API
Bank Account Verification API
RC VerificationAPI
Face Verification API
Powering KYC Technologies for 30+ Industries
KYC Solution for All Industries
Banking and Financial Services
Onboard and verify customers, borrowers and users
Real Money Gaming
Faster authentication of players to accelerate onboarding
Jewellery
Verify the buyers to prevent identity theft and money laundering
Internet/E-commerce
Verify the users and sellers to prevent frauds
Insurance
Authenticate the policy holders to ensure credibility
Healthcare & Pharma
Verify the medical reps, doctors and other medical staff
Telecommunication
Fastrack onboarding and verification of new users
Rental/Real Estate
Verification and registration of tenants
Expert insights at your finger tips.
All things Background verification, Due Diligence , candidate experience and more.
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Digital KYC: A Comprehensive Guide
This article will explain what Digital KYC is. Image-based Digital KYC for end-to-end customer onboarding with AI-powered facial recognition, liveliness detection, OCR & geo-tagging technologies.
Table of Contents
Click a topic to scroll directly to it.
Digital KYC Definition
Digital KYC (Know Your Customer) is an electronic process for verifying the identity of customers, primarily used by financial institutions to ensure compliance with regulatory requirements. This process involves collecting and verifying customer information through digital means, thereby facilitating faster and more efficient customer onboarding.
Evolution of KYC Practices
Traditional KYC methods involved manual verification of documents, which was time-consuming and prone to errors. The advent of digital KYC has revolutionized this process by leveraging technology to automate identity verification, thereby reducing the time and cost associated with KYC compliance. The shift towards digital KYC has been driven by advancements in technology, regulatory changes, and the need for improved customer experiences.
According to a report by MarketsandMarkets, the global digital identity solutions market is expected to grow from USD 13.7 billion in 2021 to USD 30.5 billion by 2026, at a CAGR of 17.3%. This growth underscores the increasing adoption of digital KYC solutions across various industries.
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Digital KYC Regulatory Framework
1. Global Standards and FATF Guidelines
The Financial Action Task Force (FATF) sets international standards for combating money laundering and terrorist financing. These guidelines are instrumental in shaping digital KYC practices globally. FATF recommends a risk-based approach to customer due diligence, which has been adopted by many countries to enhance the effectiveness of their KYC processes.
2. Indian Legal Framework: PMLA, 2002 and RBI Directions
In India, the Prevention of Money Laundering Act (PMLA), 2002, provides the legal basis for KYC regulations. The Reserve Bank of India (RBI) has issued detailed guidelines to regulated entities, mandating the use of digital KYC for customer verification. Key highlights include the use of Aadhaar for eKYC verification and the implementation of the Video-Based Customer Identification Process (V-CIP).
Components of Digital KYC
1. Customer Identification Procedure (CIP)
The Customer Identification Procedure (CIP) is the foundational step in the digital KYC process. It involves collecting basic information such as the customer’s name, address, date of birth, and identification number. This information is then verified against official documents to ensure accuracy and authenticity.
2. Customer Due Diligence (CDD)
Customer Due Diligence (CDD) involves a deeper assessment of the customer’s background to prevent money laundering and terrorist financing. CDD can be categorised into two types:
Enhanced Due Diligence (EDD): Applied to high-risk customers, requiring additional verification and scrutiny.
Simplified Due Diligence (SDD): Used for low-risk customers, involving a more straightforward verification process.
3. Beneficial Ownership Identification
This component ensures that the true beneficial owners of an account or entity are identified. It is particularly crucial for corporate accounts and helps in preventing the concealment of illicit funds.
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Implementation and Compliance
1. Requirements for Regulated Entities
Regulated entities, such as banks and financial institutions, are required to implement digital KYC processes in compliance with regulatory standards. These requirements include maintaining updated customer records, conducting regular audits, and ensuring that KYC processes are in line with legal frameworks.
2. Documentation and Record Management
Effective documentation and record management are crucial for compliance. Regulated entities must store customer information securely, ensuring data privacy and integrity. Digital KYC solutions often include cloud-based storage options that provide scalable and secure record-keeping.
3. Reporting Obligations to FIU-India
Financial institutions in India must report suspicious transactions and maintain records of customer identification data as per the guidelines set by the Financial Intelligence Unit (FIU-India). This reporting is essential for monitoring and preventing money laundering and other financial crimes.
Benefits of Digital KYC
1. Efficiency and Speed
Digital KYC significantly reduces the time required for customer verification, enabling faster onboarding processes. Automated systems can verify documents and customer information within minutes, compared to the days or even weeks required for manual verification. This efficiency not only improves operational workflows but also enhances overall productivity.
2. Improved Customer Experience
By offering a seamless and convenient onboarding experience, digital KYC enhances customer satisfaction. Customers can complete the verification process remotely, without the need to visit physical branches or submit paper documents. This convenience is particularly beneficial in the fintech and banking sectors, where quick and efficient service is paramount.
3. Enhanced Security and Fraud Prevention
Digital KYC employs advanced technologies such as AI and biometrics to verify customer identities accurately. These technologies help detect fraudulent activities by cross-referencing data from multiple sources and identifying inconsistencies. As a result, digital KYC provides a more secure verification process, protecting both institutions and customers from potential fraud.
A study by McKinsey & Company found that digital KYC can reduce customer onboarding time by up to 90%, while also cutting costs by 70%. These figures illustrate the substantial benefits that digital KYC offers in terms of efficiency and cost savings.
Challenges and Solutions with Digital KYC
1. Data Privacy and Security Concerns
One of the primary challenges in digital KYC is ensuring data privacy and security. The collection and storage of sensitive customer information necessitate robust security measures to prevent data breaches and unauthorised access. Institutions must comply with data protection regulations like GDPR and India’s Data Protection Bill to safeguard customer data.
2. Technological and Operational Challenges
Implementing digital KYC solutions involves integrating new technologies into existing systems, which can be complex and costly. Additionally, institutions must ensure that their staff are adequately trained to use these technologies effectively. Interoperability between different systems and maintaining the accuracy of automated processes are also critical challenges.
3. Solutions
Advanced Encryption: Utilising strong encryption methods to protect data during transmission and storage.
Regular Audits: Conducting frequent security audits to identify and mitigate vulnerabilities.
Staff Training: Ensuring that employees are trained in using digital KYC systems and understanding compliance requirements.
4. Interoperable Systems: Developing systems that can seamlessly integrate with existing infrastructure to ensure smooth operations.
AuthBridge’s Digital KYC Solution
AuthBridge’s Digital KYC solution offers a comprehensive, seamless, and secure process for customer onboarding and identity verification, leveraging advanced technologies like AI, ML, OCR, and biometric verification. Here’s a detailed look at the process and features:
1. Mobile Number Verification
The process begins with verifying the customer’s mobile number using an OTP-based system, ensuring consent and initial validation.
2. Selfie Capture and Liveness Check
Customers capture a selfie, which is used for a liveness check. This step ensures that the person is physically present and not using a photograph or video. The captured image is compared against national ID databases to calculate a face match score.
3. Document Verification
AuthBridge uses OCR-enabled technology to verify Proof of Identity (POI) and Proof of Address (POA) documents. This software automatically extracts necessary details, such as name and address, from the documents.
4. Customer Identification and Decision
Based on the data collected and verified, the system decides on KYC acceptance or rejection, completing the verification process.
Solutions and Technologies
- AI-Powered KYC: Utilises artificial intelligence to enhance the accuracy and efficiency of the verification process.
- Biometric Verification: Incorporates fingerprint and facial recognition technologies to authenticate identities.
- OCR Technology: Automates the extraction and verification of document details, reducing manual errors.
- Geo-Tagging: Ensures the geographical location of the customer matches the provided address, enhancing security.
Benefits
- Efficiency and Speed: The digital process significantly reduces the time required for KYC, enabling instant verification and faster customer onboarding.
- Cost Reduction: By automating the KYC process, operational costs are reduced, and manual efforts are minimised.
- Compliance: Ensures adherence to regulatory guidelines, including SEBI and RBI standards, ensuring a secure and compliant verification process.
- Security: Advanced encryption and security protocols protect customer data, ensuring privacy and preventing frauds.
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