KYC Banking and The Current Financial Landscape

The major selling point of business entities and firms in the financial services industry is the ideal integration of great customer value with convenience. With the introduction of technical innovations. There are about 6.378 billion people who use smartphones and the latest technologies, and at this rate, by 2025 the number of users would reach up to 7.33 billion. 

The advancements in IT and communication helps businesses to develop global relations and to conduct business with clients overseas, multiple accounts under different titles for different purposes are created, transactions are made on a frequent basis and this is where (Know Your Customer) KYC banking shows its prowess by enabling banks to validate the identities of individuals and business corporations by conducting AI-powered verification checks in no time, identifying the profitable groups of clients, avoiding possibilities of financial fraud, and thus creating a better digital user experience. 

Types of Verifications in KYC Banking

The KYC authentication solutions offer the following types of verification services to cover every detail about the user or beneficial owner of a firm:

• Document Verification
• Address Verification
• Facial Authentication
• AML Screening
• Mobile 2FA
• Consent Verification

How KYC Banking is Performed?

The banks in order to maintain compliance with KYC/AML protocols and standards, for initial KYC verification for banks,  a couple of necessary identity documents and records are required that covers all information required for different stages of ID verification such as national ID card, driving license, passport, utility bills as a proof of residence and so on.

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For client KYC verification. If the client is a business firm, then along with above mentioned records. KYC banking process requires additional information such as the official registration number of the firm. A valid trade license, bank statement, general expenses ledgers, annual reports, and relevant documents.

Document and Address Verification

The authentication of both aspects is conducted in a go. Digital KYC banking begins with the client uploading the documentation on the verification interface by positioning it in front of their device’s camera.

The OCR (Optical Character Technology) technology scans the uploaded files and confirms the personal details and origin information by comparing it with data in national data registration authorities, making KYC banking effective.

Facial Biometric Verification

In KYC banking, biometric solutions validate one’s ID in no time by matching his/her facial and forensic data against information in confidential data authorities like the Department of Foreign Affairs, Ministry of Finance, Defence Ministry, and watchlists of federal and intelligence agencies with great accuracy and prevents unauthorized access.

The faceprints in biometric solutions recognize characteristics like age, race, and gender, to ensure that information on ID documents corresponds with certain facial features. The service of KYC banking confirms the liveliness of the user by capturing minor expressions such as blinking or smiling. 

AML Screening in KYC Banking

The AI-powered AML solutions run a thorough scan. On the concerned person or a firm to detect any past record of being involved in money laundering or financing illegal schemes of things. To protect the monetary funds and sensitive information of customers. Along with the integrity of the corporate or financial entity from scammers and cybercriminals.

If the person is currently not in any sanction or watchlist. The verifying organization can select the option of (Ongoing AML) which notifies the firm or financial institution. The second when the name of their client appears on any list for ensuring AML security.

Mobile 2 Factor Authentication

The Mobile 2FA in KYC banking process ensures login of authorized individuals each time. When a person login in his bank account dashboard via his phone, after some time of inactivity. It automatically logs the user out under security protocols. The 2FA service generates a new code at every login attempt to maintain protection of the account.

The KYC banking solution also offers the client to create a customized personal access code for their convenience. 

Consent Verification

The technical advancements have surely made KYC banking effortless but also have created a gateway for potential cybercriminals and hackers. The consent verification in KYC banking at the time of opening a new account. Even prior to approving or liquidating a substantial amount. Enables the bankers to confirm that the authorized person is allowing the transaction. 

• The user has to upload an image of his with a note showcasing his consent for the transaction or opening of account. 
• The optical scanner of KYC solutions verify the biometric information of the user along with the validity of the note.
• This service in KYC banking is essential for preventing financial frauds and false chargebacks.

Conclusion

Over the time the ID verification documents services in KYC banking have perfected the customer onboarding and monitoring of transactions, creating ease for both firms/institutions in the financial market and their customers. KYC banking practices every measure to protect the client’s assets and the integrity of the bank. The AI-powered KYC banking services ensures end results in no time. With great accuracy, reduces risk to zero and avoids non-compliance with concerned legislation.