A majority of businesses these days understand the significance of KYC implementation and want to inculcate them in their business practices to facilitate customer onboarding efficiently. But unfortunately, due to the long process of customer identification in case of Traditional KYC processes, they are reluctant to adopt them. Effective KYC implementation involves assessing a customer’s identity, their financial activities and the risk they pose to a business. Moreover, KYC is a basic practice to protect your business from fraud or losses resulting from illegal funds and transactions. It is time for all businesses, big or small to shift to Digital KYC processes that increase verification accuracy, reduce costs, and minimize human intervention.
Why is the traditional KYC not efficient?
Banks and different financial institutions earlier used traditional KYC for the simple purpose of limiting financial crime. This includes the likes of preventing money laundering, stopping financial fraud and to limit suspicious financial activities. But the traditional KYC processes have not been successful in limiting any such activities. Here are a few reasons why the traditional KYC might not be such an efficient mechanism:
- Lack of standardized process
Every year, we see a new document popping up, stating that it is mandatory to complete the KYC process. The very lack of a standardized process makes the entire procedure yield poor results. Moreover, these processes are lengthier than simple banking processes, eliminating user-friendliness altogether.
2. Question of authenticity
The information that is provided by an individual must be verified to ensure that the KYC is a success. But, often, in the case of manual KYCs, this information is hardly checked. With a process that is so long and cumbersome, most of the KYC results are based on documentation rather than on the authenticity. There have also been multiple cases where individuals have just falsified or manipulated the documents to ensure that they get validated.
3. No audit trails
As mentioned earlier, the probability of manipulating a manual system is high. Especially when it still uses the paper-pen model. What makes this process even more prone to breaches is the lack of proper audit trails to check for any manipulations.
These processes collectively, or even individually just mount on to the existing set of problems pertaining to the manual KYC process.
So, what’s the solution to easy and efficient customer on-boarding?
e-KYC API solution is the answer. Thanks to the advancement of technologies, fintech API development companies like Easebuzz have developed API solutions that effectively conduct e-KYC for easy customer on-boarding in case of SMEs. Powered with AI technology, the e-KYC API analyzes the data of the consumers and identifies the person’s authenticity. These solutions also bring out the relevant information of the individual from government-issued documents. Using mobile cameras and webcams, these software solutions can be integrated across websites and applications, completing the entire KYC authentication process in no time. This process is done through multiple steps that include digital facial recognition, digital document verification, digital address validation, multi-factor authentication, and digital user-content verification.
Digital KYC API solutions
An organization offering seamless KYC API integration with your website/app is Easebuzz. A simple, reliable, and secure software platform that builds fintech APIs, Easebuzz uses e-KYC API to facilitate the process and ensure it is seamlessly implemented on your website/app. This process is made even more seamless wherein Easebuzz has partnered with Signzy to get the customer on-boarding sorted.
The components of our Digital KYC API Solution that you can plug and play to onboard your clients within a few hours involve:-
ID Verification and Biometric Identification, Customer Address Collection and Verification, Customer Due Diligence, Phone Number and Email Verification, FaceMatch Facial Recognition Solution, Video KYC, Data Masking, Automated eSign verification, Aadhaar based KYC Fetch, Data Aggregation, AML Checks
- ID checks
Our APIs forgery check systems look into user details including the government IDs of the user. To make the process secure, the system also uses AI-based image forensics on every ID.
- Automated background checks
Multiple data sources are scanned and checked for different credit checks, AML/CFT, negative merchant Ezmatch DB among others.
- Thorough business check
Our API proprietary algorithms check and reference business names and details against international and government databases.
- Income checks
Our APIs use traditional and digital sources to establish income. This is done through digitization of salary slips, income tax returns, bank statements, and employer verification.
- Digital contracts
Another advantage of the e-KYC API solution is how it offers a simple and secure way to obtain and sign contracts. This is done using enhanced security measures which also includes facial biometrics.
- Modern backend dashboard
With our e-KYC API Solution, merchants get a dashboard that allows them to look at real-time risk assessment of the customer with the help of AI algorithms.
Using the e-KYC API from Easebuzz is ideal for any business to ensure that the KYC verification process is done swiftly and efficiently.
Conclusion
Like in every process, digital innovations have revolutionized the KYC process for organizations and institutions. By having a digital KYC API, the technology can reduce the time spent on physical interactions along with reducing processing time. Through organizations like Easebuzz, KYC API integration marks the revolution that was long due in the process to make it more effective, efficient, and effortless. Get in touch with us to get a quick walkthrough about Easebuzz e-KYC API Solution.
