Identity Verification to Comply with KYC Requirements

Financial services companies must verify their clients' identities, understand the nature of their transactions, and assess their risk of money laundering or other financial crimes as part of their Know Your Counterpart processes.

These standards are the cornerstone for ensuring consumer confidence and preventing fraud. However, they are becoming more insufficient. While the customer with whom you're doing business may be genuine, their clients may not be.

As a result, many authorities are enacting or strengthening legislation to fight the potential to conceal ownership or finances. These new rules are known as Know Your Consumer's Customer, or KYC, and they aim to make the identity of the final customer more clear.

Companies want to expand their client base through digital channels that are faster, simpler, and less expensive, but the present regulatory landscape prevents them from doing so. Customers desire the ease of joining up through digital channels, as well as a quick and easy procedure.

Institutions, on the other hand, must deal with the reality of KYC compliance, which might include moving new clients out of their chosen channel for identity verification or having them wait days or weeks for their identities to be confirmed.

Due to these competing needs, KYC technologies that can turn an organization's manual KYC and client onboarding procedures into a simplified online approach are in high demand.

Fundamental Verification Requirements -

• Ability to extract data properly from a variety of ID papers (passports, government-issued IDs, driver's licences, etc.)

• Capability to check the ID document's legitimacy and validity

• Possibility of obtaining biometric data from a consumer (e.g., selfie, fingerprint)

• Potential to confirm a customer's identification by comparing biometric data to an ID document.

The optimal Know Your Customer solution must be scalable for organisations with an international presence or global objectives, in addition to safely achieving these technological requirements.