Juniper Research predicted in Oct 2023 that digital identity verification checks would surpass 70 billion by the end of 2024. And it has been increasing ever since. It means that identity verifications have become quite significant in recent years.
However, the banks and fintech businesses that are still operating on the traditional KYC methods are facing challenges in streamlining the process and keeping it secure for their customers.
Are you tired of struggling to streamline your identity verification process? Would you like to automate your verification process while keeping it secure? If yes, you are right where you should be.
Keep reading to explore the major challenges of traditional identity verification methods and the benefits of implementing the eKYC solution. Also, get a know-how of the security features of a digital KYC solution to simplify your identity verification process and its successful use cases.
Let’s spill the beans!
Challenges of a traditional identity verification process
The traditional identity verification process faces some challenges due to its manual operations and tedious processes. These challenges can hamper the KYC process and overcoming them is possible only with advanced digital KYC solutions.
These challenges comprise of:
Time-consuming & manual processes
You know that traditional identity verification can be extremely time-consuming and manual, requiring your staff to physically examine IDs and manually input customer data.
This tedious process hampers your ability to onboard customers quickly and provide a streamlined experience.
An automated eKYC solution allows you to instantly verify identities and accelerate customer onboarding.
Higher risk of fraud and human errors
The legacy identity verification process relies on manual review, which opens the door to human error and makes you vulnerable to fraud.
Without automated checks, it's easy for fake IDs and manipulated documents to slip through thereby increasing the cyber thefts.
An automated eKYC app/solution uses AI to detect fraud instantly and minimizes the risks of manual verification. It gives you peace of mind that every customer is legitimate.
Not scalable as the business grows
The traditional verification struggles to scale as your business grows. It's because the manual reviews for identification take considerably longer and require increased staff with the business growth. This hampers your growth.
An API-driven eKYC solution integrated seamlessly with your onboarding workflow and scales instantly as your customer base grows. It makes your identity verification future-ready to support scalability.
Regulatory compliance requirements
With legacy systems, it's difficult to stay compliant with the evolving regulations. Manual reviews leave room for human error that can lead to fines or hefty penalties.
A Digital KYC solution constantly updates to adhere to the latest AML, KYC, and GDPR. It provides an audit trail showing your diligence in verifying identities, helping demonstrate compliance during audits. This protects your business from regulatory risk.
Benefits of implementing eKYC solutions
With an eKYC solution, the above-mentioned challenges in the traditional identity verification process can be curbed effectively. You just need one of the right e-KYC solution providers.
In this section, you will get to know the potential benefits of implementing eKYC verification to simplify your user identity verification. The benefits include:
Automate and digitize identity verification
Automating identity verification digitizes the entire process for instant results. An eKYC verification solution uses AI and AML checks to validate government IDs and biometrics thereby removing manual checks automatically.
This digital KYC process accelerates onboarding while also reducing human errors. Going digital enhances accuracy, and convenience and allows you to verify customers anytime, anywhere without physical documents.
Reduce processing time from days to minutes
Manual user identity verification process can take days or weeks to collect documents, send them for review, and know the final results.
With the eKYC solution, the document verifications are done in less time and with the utmost accuracy due to OCR tech used to extract the data and validate identities and biometrics in real time.
This significantly accelerates your customer onboarding and allows you to verify new users the moment they sign up thereby reducing the processing time from days to only minutes.
Lower operational costs
The traditional identity verification process requires extensive staffing to manually validate the documents, which can be very costly. Digital KYC solution reduces manual validations since the entire verification happens instantly.
With faster eKYC authentication, you save significantly on operational costs. Plus, with faster onboarding, you can serve more customers without the need for human resources.
Scalable for business growth
An eKYC solution seamlessly handles growing volumes without additional staffing. Its automated eKYC verification system can verify thousands of customers daily, instantly scaling as your business expands.
By removing manual identity verification challenges, eKYC solutions provide the scalability and speed needed to acquire customers and accelerate growth quickly.
Enhanced security features like liveness detection, face matching, and more
An eKYC app or solution provides robust security features that traditional verification lacks. It uses AI for liveness detection to prevent spoofing, face matching to confirm ID photos match the user, and additional biometric checks.
These enhanced security measures prevent fraud, ensuring every user is verified accurately. With automation, you also benefit from reduced human errors that can lead to security and data breaches.
Adherence to regulatory compliance requirements
Traditional identity verification processes can lead to compliance issues as regulations evolve. An eKYC solution stays continuously updated on the latest AML, KYC, GDPR, and other regulations.
By automating identity checks, it adheres to compliance requirements and provides audit trails showing your diligence. This removes the risks of fines, revoked licenses, or damaged reputation due to non-compliance.
Security features of robust eKYC solution to streamline identity verifications
Some of the best identity verification methods are best because of the advanced security features they incorporate in their eKYC solution. In this section, you will get insights into some best features of a robust eKYC app that can help streamline your user identity verification process.
OCR for ID capture and data extraction: The best way to verify identity is OCR (Optical character recognition). It instantly extracts user data from government IDs, passports, and documents for automated verification without manual entry.
eKYC authentication via OTP: OTP authentication provides an additional layer of identity confirmation by requiring a one-time passcode during onboarding.
Facial recognition match against ID photos: Facial recognition matches fresh/live selfies to ID photos to validate user identity and prevent spoofing attempts.
Liveness check for anti-spoofing: Another best way to verify identity is liveness detection. The liveness checks use AI behavioral analysis to detect fake photos, videos, or masks and ensure a user is a real person.
Checks against watchlists for enhanced due diligence: Integration with global watchlists enables screening users against databases of risky individuals, or PEPs (politically exposed persons) for enhanced due diligence.
Audit trails and reporting capabilities: Audit trails capture detailed records of the identity verification process for reporting needs and compliance requirements.
Integrations with data sources for address verification: Integrations with trusted data sources allow seamless verification of user addresses, phone numbers, emails, and other KYC details.
Configurable risk-based authentication workflows: Configurable workflows allow custom risk-based identity verification methods tuned to an organization's specific fraud prevention needs.
Data encryption and compliance with regulations: Encryption and compliance with regulations like GDPR ensures responsible handling and protection of sensitive user data.
How DigiPay.Guru can help?
DigiPay.Guru is a digital KYC solutions company offering a robust еKYC solution to еnsurе reliable and sеcurе identity verification whilе onboarding your customеrs.
Our solution makes your businеss fast, reliable & safe for your customers with thеsе advanced features:
Facе vеrification: Dеtеcts facial features via selfie based livе image/vidеo capturе to еnsurе thе lеgitimacy of customеrs.
Documеnt vеrification: Ensurе documеnt validity with sеt standards and OCR tеch to еxtract nеcеssary data accuratеly.
Addrеss vеrification: Makе surе that thе pеrson you onboard is rеal & lеgitimatе by vеrifying thе usеr addrеss.
AML scrееning: Screening To ensure a sеcurе & compliance process keeping your systеm safе from financial crimes and compliance & security breaches.
2FA - Authеntication: Strеngthеn thе identity verification process in real timе, sеcurеly onboard customеrs, and givе zеro account accеss to attackеrs with 2FA.
The features of our solution go beyond them such as adhеrеncе to compliance and security regulations, dynamic consеnt vеrification, еIDV, enhanced due diligence, transaction monitoring, dynamic workflow, еasе of intеgration, and morе.
Conclusion
Streamlining your identity verification process is extremely important when it comes to ensuring the security of your customers and your business. With the eKYC solution, its unbeatable benefits, and its advanced security features, it has become possible to automate the identity verification process securely and stay ahead of your competitors.
If you are a bank, fintech, or any other business looking for a trusted eKYC solution, DigiPay.Guru is the solution for you!
