In the business sector, it is essential for companies to first thoroughly know their clients and then build a relationship with them. The KYC verification online was initially influenced by the banks only, but now its reach is increasing daily, these solutions are presently giving their services to almost every industry. The hackers are driving new ways to hack the system of the users; therefore the government has made some regulations to safeguard them,
Introducing KYC Verification
KYC check is an online process for the authentication of the users, this is done to mitigate the data breaches. It is a digital authentication, in which the system properly checks the customer profile and ensures that they are not a part of any illicit activity. The clients do not have to go to the office, their validation can be done anywhere. In 2023, the cost of a data breach in Canada was almost $5.13 million, which is less as compared to the previous year. In 2022 it was $5.64 million, and the use of the biometric solutions has lessened the risk rate of the companies.
Know Your Customer Process
Biometric solutions involve different steps in different industries, depending upon the products they are dealing with, the services and the documentation they involve. Here are some most common steps of KYC authentication:
- The companies onboard the user through the identification process, they create the account of the clients, and for this purpose, they verify their identity.
- The clients submit the soft form of the legal documents and then compare it to the database of the government.
- Measure the risk of the users, and create their profiles accordingly; other than this the company also has to make the policies and their strategy.
- If needed then the organization has to take the AMl compliance measures.
Why is KYC Auhtneticaiton Necessary for the Digital Era?
In this era of technological advancement, businesses have to comply with the laws so that they can safeguard their credentials. Nowadays companies can perform all their tasks through technology, the latest tools simplify the operations of businesses. The employees do not have to maintain all the records, the technology helps them in their work. The same is the case of the KYC verification online, it onboards and verifies the users. The offices do not require staff for the authentication and registration of the customers. The machine learning tools are expert in these tasks. They do not get tired or distracted by their ambiance, they accurately record the whole record.
For Which Companies the KYC is Essential?
KYC compliance is necessary in a wide range of industries, here are some businesses in which these tools are actively working.
- Financial industry such as banks and insurance companies, onboard their customers after proper authentication, and they record their data and bank statements. As these businesses hold the sensitive information of the users, therefore they must comply with these regulations. The insurance companies have to check the profile of the clients, so that any hacker can not misrepresent their data, to get the insurance money.
- Fintech Industry is also used for digital transactions because there is the probability that hackers may steal the password of the client and then log in to their account. To control this issue it is therefore necessary to comply with the KYC verification online. The cryptocurrency is not regulated by anyone, therefore it is more prone to fraudulent activities, it is suggested to verify the account of the client and then associate with them
- Large documentation is required in the real estate sector, which increases the risk of data breaches. The latest tools reduce the paper process, the entire task is done through digital means. The real estate agents have to check the profile of the customers and then deal with them.
- In the gaming industry, the website owner has to verify the age of the gamer, and then grant them access. Some portals contain content, which is not good for the well-being of minors. Therefore the owners have to check the age.
KYC verification online is giving its services to a different range of businesses, its process depends upon the product or the document they are dealing with. These solutions increase the revenue of the companies and lessen their miscellaneous expenses. The business has to integrate with the latest technology so that it can survive in the competitive environment. These solutions regulate the working of the company, by reducing their daily task. In addition to this, the organization can increase its clients by providing them with seamless services.