Thu. Jun 1st, 2023
document verification

Full name and other relevant information is required around the world for customer identification in any industry. However, there are some financial institutions that do not such a simple method for identifying their customers. Due to the increasing number of frauds, financial companies have become strict and stringent in their rules and regulations while onboarding new customers and making a deal with their competitors.

How is KYC (Know Your Customer) defined?

This is a common term (KYC- Know Your Customer) used in the banking industry that points toward the procedure of customer verification documents and authentication for multiple businesses. The process should be carried out so that only genuine clients can gain access to the services provided by the organization. 

The procedure is known to be compulsory in order to deal with illicit activities e.g. money laundering, and other kinds of financial crimes. The procedure facilitates authorities and other financial companies to monitor the behavior of clients and detect any suspicious activities in a timely manner. Other than the legal side, the execution of KYC facilitates organizations in screening fraudulent identities from their systems. 

What Is The Significance Of KYC In The Verification Procedure?

The procedure supports the banking staff through the application procedure and cross-checks the identity details that are deemed important in the process. This is to ensure that the identity information provided by the client is genuine or not. Because there are multiple instances of financial fraud and extraction of money through fake identities, the KYC process has become critical. The process is effective in preventing crimes. 

Nevertheless, the banking sector has been practicing the manual side of KYC which demands a huge amount of human effort. Moreover, there are risks linked with human labor. It can result in more time usage, low productivity, low accuracy, and more errors that can be financially damaging for the organization. In such cases, it becomes important to use such procedures and improve the services provided by the financial institute. It will bring more customers through positive word of mouth. 

Is there any Efficient Approach?

For the betterment of the KYC authentication system, the financial companies should use an online Document verification system that can reduce the usage of time and money so that a better verification process can be carried out. As per the desirable automation, the online KYC can minimize both the costs while increasing productivity and the accuracy level of the outcome. The manual effort takes a lot of time and it is an error-prone process. With the usage of artificial intelligence, certification solution is the option in the market. 

Through the usage of automatic processes, the business industries can incorporate genuine clients in real-time. In the past, there was a manual onboarding procedure that results in poor customer experience and the loss of clients. Furthermore, the online KYC system not only facilitates the recognition but also organization of the customer’s data. Risk-based profiles can also be created. The businesses and document verification in the banking sector should remain active while performing the continuous screening process for high risk customers and individuals. With the regular advancement in technology and globalization, the onboarding process has become the basic need of companies these days. Hence, it carries significance.

What Type Of Records Are Needed For The Authentication Process?

For the authentication procedure, the following are the kinds of documents that are required:

  • Government-generated ID card
  • Passport record
  • Driving License
  • Debit/ Credit card records

For the evidence related to addresses, if something is not mentioned and indicated in the above records then the alternative options are in the following:

  • Bills
  • Bank statements
  • Rental agreements
  • Evidence of employability
  • Insurance-related agreements
  • Taxation bills

The clients should keep in mind that the documents to be submitted should be under 3 months old. The above-mentioned documentation can be used for collecting the required data. When it comes to countries and other regions, the requirements can be different but the common requirements of data are:

  • Full name of the client
  • The documentation number
  • Residential address
  • Photo of the individual
  • Date of birth for carrying out 
  • Document issuing and expiration date
  • Country of origin

Final Thoughts

In sum, the KYC document e-verify documents system is important for the banking sector. The authentication system allows the use the digital resources to deter fraud and scam attempts. Moreover, the elevated safety and security results in gaining the customer’s trust and enhancing the positive experience for industries. 

By hassan

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