Earlier, we walked on foot to reach our destination, and now we have metros to do the same within seconds. This journey from foot to metros isn’t only about technology but also about the human need to simplify everything.
We want to work smart instead of hard so that we save time and put it into different areas of life to make it simpler too. This constant cycle of grinding and detangling things has undoubtedly done wonders for the human race but, on the other hand, has silently created loopholes in it.
These loopholes can be defined as fraudulent activities, money laundering, identity theft and other cybercrimes. The more we rely on technology to work for us, the more we are making ourselves vulnerable to these risks.
So, how do we save ourselves from the threats we have surrounded ourselves with? The answer is incorporating KYC verification practices that not only protect you from potential threats but also help you know the people you are dealing with.
Below is everything that you need to know about KYC and how to implement it seamlessly into your business or organization.
What is KYC?
KYC or Know Your Customer is one of the identity verification practices used in institutions like banking or business sectors. This process starts by identifying the client or the customer before you begin any long-term commitment like banking or business with them.
KYC verification practices include obtaining information on the client’s identity, their date of birth, address and name. This is done through official documents issued by the government. Once the identity is established, the person is asked to meet to make sure that their face matches the face in the provided documents. Such a measure ensures safe onboarding, banking, or business.
Issues Faced in KYC
KYC, which is one of the most used verification practices of compliance and risk management of any organization, can sometimes delay the daily flow of activities. There are a number of people who want to invest in your company or start banking with you.
However, the process of KYC can sometimes be time-consuming, which may result in unhappy clients or late business deals.
Therefore, it is mandatory to switch to smart KYC practices that not only save you from risks but also your time.
Implement Best and Seamless KYC Practices
Innovative KYC practices let you stay in tune with time and technology. These practices ensure that your work is done efficiently.
Below are the measures you can use before implementing the traditional KYC practices in your organization.
1. Go Digital
Modern problems require modern solutions. Since the world today is digitally driven, it is wise to implement digital strategies.
The manual process of KYC is time-consuming and can be prone to human errors. Switching it with a digital KYC process ensures immaculate monitoring, speed and risk assessment.
Moreover, digital KYC, also known as eKYC, lets one go through the process from the comfort of their home. Your clients don’t necessarily have to visit you for this verification process. It can be possible via a real-time video call with minimal effort from both the client and the organization.
2. Use of Applications with Artificial Intelligence
Replacing traditional KYC process by AI or (Artificial Intelligence) based procedures is one of the best means for authenticating your clients.
Using AI applications will aid you in complying with your organization’s compliance standards. In addition, these are useful and effective in confirming that the intended individual is in fact who they say they are and would also aid in deterring fraudulent acts.
Moreover, these programs feature a user-guided approach that eliminates friction for the client as well as your company.
3. Authentication with Biological Factors
Other KYC techniques including usage of authentication systems which based on unique biographical elements will help you to save time. These kinds of verifications entail biometric technology, which measures factors such as fingerprints and irises.
This proves a prudent strategy, which may help any organization achieve better operational efficiency. The use of biometric techniques provides high level protection against possible identify theft and many other dangers.
4. Strive for Improvements
Apart from implementing technologies into your business, make sure you monitor all the ID verification and authentication practices included in it.
Check for areas that need improvement in your compliance with safety regulations and make the necessary changes. Try to eliminate factors that can risk the safety of your business, such as any identity theft or suspicious behavior.
Identify areas in your authentication practices that slow you down. It can be anything ranging from manual verification of documents or even your newly incorporated digital methods of identification. Therefore, it is crucial to keep an eye on all the digital practices that you incorporate to make sure that they work fine.
Conclusion
KYC is a process that saves your business or organization from the rising threats in the digital world. If you are a business owner, make sure you have functional compliance that involves KYC authentication practices that are fast and efficient.
These not only save your time but also keep your business transparent to you by keeping hazards away. Practices like eKYC, biological authentication or the use of AI are an amalgamation of traditional and contemporary practices. Using them establishes the identity of the client while keeping your business on pace in the competitive world.
