Digitization has changed the way we interact and use financial services. KYC (Know Your Customer, for the uninitiated) compliance is a must for businesses in financial and all allied sector, and businesses have to keep up with FINTRAC / AML regulations. For consumers, KYC was about a physical form and submitting physical documents – a process that took considerable time and was among the chief reason for increasing dropouts. KYC compliance is new reality that brands need to accept and adopt, but digitization certainly makes the move easier. digital KYC is now up for grabs, and in this post, we are discussing more about the benefits.
- Go paperless. There is no denying that digital KYC is the need of the hour, especially in an environment that is being fuelled by paperless technologies. You can do away with all those KYC forms and paperwork involved, which often irritated an otherwise interested consumer.
- Reduce identity thefts. Physical KYC had inherent risks of papers being misplaced, lost or misused, and while critics do have their concerns when it comes to digital information being stolen, the risks of identity thefts are minimized for sure.
- Minimize forgery of documents. There are many cases where KYC documents have been used for varied kinds of forgery. Real time verifications leave no scope of data theft, especially on behalf of employees and agencies/parties that have access to company data.
- Assured compliance. If you select the right digital KYC API, you don’t have to bother FINTRAC or AML regulations and compliance means. Basic details like address, name, phone number can be verified directly by leveraging the user’s bank accounts.
- Improve customer onboarding experience. Eventually, every service is doing their bit to entice and retain customers, and digitization of KYC is the right step in that regard. You can consider rethinking the way customers imagine the KYC process to be, which will improve onboarding experience.
Things to know
It is necessary to understand if the digital KYC API and service selected by you is reliable and known in the first place. The company must offer assistance for integration, and the whole process of shift should be an easy one. It is also a good idea to consider what digital KYC can do for your business in the long run, because whatever you adopt, it’s likely to remain a constant for at least a while. Check online now for more details on KYC digitization.