E-Kyc Onboarding - A Digital Solution to User Identity Verification

The way of onboarding new customers is always a cycle of processes and tasks. The users are verified on the basis of their identity and the needs of the organizations and businesses. The process of customer onboarding was conducted with several manual methods of verification such as the face to face meetings and other interview and document checks by agents of the organization. With time the manual method of identity verification is losing its worth as most businesses and organizations are moving online and creating new methods of user verification such as the digital KYC or e-KYC onboarding processes.

Surveys show a rapid increase in the number of online businesses or the e-commerce market, with the approximate figures reaching over 2.2 billion users in the global e-commerce market in 2021.

The KYC Compliance On Digital Verification

The KYC (Know Your Customer) act was first introduced in the early 2000s to tackle and prevent money laundering. It is a complete verification check of the users to ensure that the person is eligible for the desired activity. This is processed through a complete check and verification of the user’s identity and documents. KYC compliance is a part of the law in most countries and almost every organization performs KYC checks during the onboarding process of the new user. The use of digital means of KYC verification is authorized if the process is complete and follows all the KYC user verification guidelines. In the digital world, the e-KYC check is conducted with online platforms and the new technologies have made it easy to implement globally.

E-KYC - How it Process the User Identity Online

With e-KYC, the onboarding process is completely evolved. The introduction of new technologies has created the ease of online verification of the user. Different technologies are implemented in the online user verification processes. The best processes of online verification are the biometric verification of the user, online document evaluation, and online recorded video verification and liveness detection of the user via live video conferencing.

Biometric Verification of the User

The biometrics of the user is a secure way of identifying and verifying as they are unique person to person and in fact, cannot be replicated by the fraudsters. With new engines of online user KYC verification, biometric features are efficiently implemented. Several online systems use the fingerprint scanning method to verify the user via their fingerprint impressions, the fingerprint scanning is secure and it was one of the first biometric implementations on most e-KYC systems. Other mechanisms of verification include the facial recognition technique, facial scanning is comparatively newer than the fingerprint impressions and uses the face of the user for identification and verification. Other methods are also deployed in some systems which are not as popular, those are also secure such as Iris scanning and retina identification of the user.

Online Document Evaluation of the User

Document verification is a must as it provides the user’s proof of identity. Online systems are also programmed to scan and verify the user documents online. Thanks to the new technologies of artificial intelligence and optical character recognition, the documents of the user are evaluated completely via these two technologies. The modern-day systems are now becoming more efficient in processing documents that they even run validation checks on the documents to check for any signs of fakeness or forgery. The document verification process is a necessary part of the KYC checklist and it is implemented virtually with the help of combinations of new hardware for scanning documents and software for validating and verifying them.

Recorded Video Verification of the User

The next step in the E-KYC verification is the verification of the user by means of their video identification. The client is requested to upload a high-quality recorded video to the online system with proper exposure to the face of the user. The user's face is verified from the video to securely verify their identity. The recorded video proofs are a part of E-KYC checks and provide the identity information of the users.

Liveness Detection of the User

Another method of verifying the user online is the real-time liveness detection of the user. The manual KYC check requires a face-to-face meeting of the client with the authorities to complete the verification cycle, this same scenario is implemented online with the use of an online video call between the user and the verification agent that is deployed by the firm.

Conclusion

The e-KYC solution is a modern way of evaluating the user and performing the identity verification check. This method is backed up by new technologies and methods such as biometric scanning, online video conferencing between client and organization, and document online verification which provide an efficient way of processing the data of the user.