Know Your Customers (KYC) protocols have become a vital part of organizations to verify the credibility of the end user. Nowadays, they ensure an effective mechanism of user onboarding or account opening, log in or access, and financial transactions.
The traditional mechanisms of KYC included verification with One-Time Passwords, which is still a dominant method in the Aadhar process of the Indian government. However, seamlessly transforms user verification technology in the eKYC sphere by including biometrics as digital identity.
Today, face recognition technology validates the end user’s identity from a government document and validates the details on a government portal, such as UIDAI in India. The rapid inclusion of biometrics in the KYC process is enhancing the security and convenience of the end user in multiple ways.
Must Read: Staying Ahead with Security: Exploring Passive Liveness Detection
Biometrics as Digital Identity is Transforming the eKYC Sphere
Table of Contents
Swifter Onboarding
The inclusion of face biometrics in the user validation streamlines user registration, especially in banking and financial services apps. Assisted with Optical Character Recognition (OCR) and other significant technologies, they make filling out forms and verification through government identities seemingly easier.
The user must only validate and change the final information, followed by a liveness detection test, ensuring that the end user’s face biometrics match the picture in the attested document. The process takes minutes instead of days, which was earlier due to the physical location visit.
Decreased Identity Scams
Identity theft and fraud have become a persistent problem for the banking and financial service industry. The issue is also creating chaos in other sectors. In 2022, 441,822 identity theft victims reported credit card fraud complaints with the Federal Trade Commission (FTC) in the United States. It scaled to 156,099 and 153,547 in case of bank and loan/lease fraud.
So, identity theft/fraud is a significant problem. Introducing biometrics as digital identities enables BFSI and other industry stakeholders to reduce this number. This is happening because biometrics are unique to individuals, and they allow the matching of the biometric patterns of an individual’s identity with a registered address or ID proof, which is often required for loans, account opening, healthcare, and other purposes.
Enhanced Efficiency
Biometrics are time saviors in any industry. Unlike PINs, passwords, or OTPs, they don’t require a waiting time and provide seamless access wherever available. The user authentication is also secure and swifter.
Even under the user onboarding process, the time taken to verify the credibility of the documents and biometrics registered with a government organization, such as UIDAI, is significantly lower than OTP or the physical verification process.
Biometric allows organizations to streamline checks with Politically Exposed Persons (PEP), Anti Money Laundering, sanction checks, and other lists during onboarding. But it happens swiftly in the background and refrains access to unauthorized users.
Reducing the time during onboarding and access enhances the user experience, resulting in a probability of higher user retention, which is important for organizations.
Must Read: Contactless Biometric Technology: Important Things to Know!
Conclusion
Including biometrics in the eKYC process not only enhances the security and convenience of the end user but also decreases identity scams and enhances efficiency. Simultaneously, it is keeping the organization compliant with the government’s regulations.
As a result, Remote Biometrics Digital KYC is proving to be beneficial for all. The add-on benefit of PEP, AML, sanction check, and other lists during onboarding is that they enhance compliance and reduce the time to validate user authenticity.
Biocube’s BioKYC can help your organization achieve its eKYC goals with ease. Get in touch with us to learn more about it and take a demo of our solution.
Transform Your Verification Process with Contactless Biometric Digital KYC:
Enhance Efficiency, Security, and Compliance. Elevate Your Business Today!