Data security is among the top priorities for businesses, regardless of the scales. Alongside data security, the critical role of transaction security and customer trust in the continuity of businesses is prominent. When it comes to businesses, being a trusted brand signifies many things, including reputation, and consumer-oriented research confirms this context, pointing out that customers prefer trustworthy more. At this point, it is recommended that customer trust-based processes, which are among the essential requirements for reliable and healthy businesses, should be handled carefully. Critical process management in businesses within this scope, is built together with “Know Your Customer”, which is short for KYC. So, what is KYC, why traditional KYC out, EnQualify KYC solutions in?
KYC: The Basics of Identity Verification
We will examine what KYC is and what it is not in detail. The primary goals of businesses are to evaluate customers accurately, to have a smooth flow of processes related to solid collaborations and customer trust. “Ensuring the security of customer processes” is the most concise answer to why KYC is needed. In this context, the processes related to recognizing the identities of customers and their groups and having information about their qualifications in order to prevent the possibility of misuse of the products and services to be offered by businesses. So, what are the objectives of KYC, which focuses on customer recognition in relation to certain security procedures?
Why do businesses need KYC?
A legal identification document is a necessity to determine whether the country in which the transaction is made officially recognizes the person concerned, while the identification of the person by whom the transaction is made, answers the questions such as whether, a money transfer at a financial institution is made by an authorized person. On the other hand, the steps applied for KYC may be insufficient in some cases.
Replacing Traditional KYC with Digital Solutions
Change has always been inevitable in the course of history. In previous eras, there were usually physical steps in KYC. The customer or prospective customer would, for example, hand his/her ID card or passport to the authorized person, and then a basic examination of the document including personal data, such as name and date of birth would begin. With a traditional method similar to the practices called two-factor authentication or multi-factor authentication in today’s cybersecurity world, the authorized person would ask the other person questions about the information on the document. Therefore, the process was highly susceptible to the consequences of human error, carelessness or the malicious intent of the person whose legal identification was being verified. The prominent consequence of all these factors was intense security vulnerabilities.
Significant progresses have been made with the development of digital methods. While the traditional KYC stages have been reshaped with digital transformation, a more practical scope has emerged for both businesses and users. At this point, innovative features such as software and artificial intelligence technology are utilized in identification and verification at modern e-KYC processes.
AI-Driven Self-Serve KYC Solutions
In today’s world, when cyber fraud techniques or tactics are known in detail, it is a crucial need to integrate advanced technologies into defense mechanisms. In the context of e-KYC, application logins in sectors such as finance, e-commerce and tourism start with username/email address, password steps and are completed through authentication methods based on biometric data such as SMS or mail notification, fingerprint verification, face matching. Thus, digital and electronic tools come into play for identification/verification processes.
Traditional KYC is obsolete, and the advantages of innovative strategies are at the forefront. Traditional KYC processes often fall short, relying on slow, manual methods that can be error prone. That’s where EnQualify’s modern KYC solutions come in, ensuring secure transactions and customer trust for businesses. EnQualify utilizes advanced AI-driven solutions for secure image, video and document reviews. Incorporating the cutting-edge technologies such as AI and blockchain to ensure comprehensive compliance checks and risk assessments, EnQualify KYC solutions go beyond simple identity verification, giving you the power to perform comprehensive compliance checks and risk assessments, when onboarding and verifying customers. By doing so, you can strengthen your business against risks and streamline your operations. This allows you to focus on what truly matters-growing your business, while we handle the intricacies of AML.
Offering holistic responses to threats to secure transactions, these solutions enabling for all processes to flow smoothly, including accurate customer assessment, healthy collaborations and customer trust. On the other hand, in certain sectors, KYC is a regulatory obligation. EnQualify, offers innovative KYC solutions to firms in industries such as finance, e-commerce, tourism, hospitality, telecommunications, car rental/car sharing, cryptocurrency exchanges, and brokerages.
Simplify identity verification with our innovative technology with self-service KYC process. Our AI-driven, self-service KYC solution automates ID verification, face verification, NFC verification, and liveness detection, all within 5 seconds! Your customers can easily take a selfie and scan any government-approved ID from 198 countries. Our system collects Machine-Readable Zone (MRZ) data and performs Optical Character Recognition (OCR) scans, followed by Near-Field Communication (NFC) chip reading for holographic security checks. A liveness check with commands like smiling and blinking ensures further authenticity. For additional support, customers can use WebRTC video calls without compromising account confidentiality.
Transform your KYC process with EnQualify’s fully automated, AI-driven solution, providing superior user experience and over 90% onboarding success.
In today’s world, financial crimes and terrorism in the financial sector are gaining increasing importance and precautions. One of the methods developed to prevent and detect such crimes, “AML” in other meaning “Anti-Money Launching” has spread to many sectors and
Deepfakes, as the term hints, is another artificial intelligence (AI) level that opens the boundaries of highly realistic but fake content. Through deep learning algorithms, deepfakes can create almost indistinguishable sounds and visuals of people and real-life events, which, unfortunately,
In the digital age, businesses are constantly evolving to keep up with the ever-changing landscape of technology and customer expectations. One significant advancement in this regard is the implementation of electronic Know Your Customer (e-KYC) processes. e-KYC not only
