Businesses spend hundreds of hours and thousands of dollars every month to protect the precious data of their customer. Still, the chances of a wrong onboarding are always there which may put the entire effort at stake.
The traditional methods of customer verifications are there, but sometimes they are not enough. In such cases, we have eKYC, also known as the Electronic – Know Your Customers method that ensures the highest level of confidentiality and security for new customer onboarding.
Numerous methods of eKYC provide highly effective results, but more important is following some guidelines and tips to ensure the eKYC verification process goes well. And before that, we need to understand why an eKYC solution is important for secure customer onboarding.
Benefits of eKYC for Secure Customer Onboarding
eKYC solutions provide a wide range of benefits in secure customer onboarding. Some of them are:
1. Automated Verification
These days, eKYC solutions use highly advanced technologies like Machine Learning and Artificial Intelligence that automate the entire verification process. This reduces the chances of human errors significantly and increases the accuracy of identity verification.
2. Fraud Detection
eKYC systems can recognize fraudulent documents as well as suspicious activities, in real-time, which means there is zero possibility of someone trying to forge the system with fraudulent identities.
3. Biometric Authentication
The modern eKYC systems work with biometric verification systems, such as face recognition, fingerprints, and iris scanning. These systems further increase the level of verification, making it very difficult for someone to bypass.
4. Data Encryption
With strong eKYC systems, your business can ensure that customer data is protected from unauthorized access. The systems provide a high level of data encryption which makes sure the data cannot be used for illegal purposes even if it’s stolen.
5. Regulatory Compliances
eKYC helps you comply with regulatory requirements like Anti Money Laundering and others. This not only helps you save your valuable data but also saves you from the huge penalties that you may have to pay otherwise.
6. Audit Trails
Since every activity done on eKYC systems is stored, you can keep track of the audits. You can keep track of all the transactions and interactions. This not only helps you store valuable data but also makes the entire process very transparent. In case of any security review or audit, this data can prove to be highly useful.
7. Reduced Manual Handling
One of the biggest benefits of eKYC is less human interference. Since all the processes are automated and are done electronically, they require very little human effort. This not only saves labor hours and costs but also increases efficiency and reduces the chances of human errors.
8. Real Time Updates
With eKYC systems in place, your business can track everything in real time. This includes updates about the verification process, customer data, and much more. If you find any inconsistency, you can make the corrections in real time, saving valuable time and effort.
Needless to say, eKYC solutions streamline the entire customer onboarding process to a great extent. Not just saving on cost and manual efforts, these systems ensure to eliminate the risk of human errors, which otherwise may lead to a great loss.
Tips to Ensure Fast & Secure Customer Onboarding Via Ekyc Solution
Now that we know how eKYC solutions are beneficial for your business and customers, it’s time to understand what it takes to ensure that customer onboarding is done properly.
For the same, we have 5 tips that will make sure the eKYC solutions provide better and smoother customer onboarding.
1. Use Advanced Authentication Methods
Though eKYC systems are self-sufficient in providing a high level of security and transparency, the chances of vulnerability are still there.
To prevent from this, it is suggested to use advanced authentication methods like multi-factor authentication (MFA) and a combination of biometric systems, like facial recognition or fingerprint scanning.
You can also combine it with traditional authentication methods, like OTP or email verification to further strengthen the verification process.
2. Provide Great User Interface
We do understand that the professionals at your company are skilled in these verification processes, but what about the laymen?
To enable the common customers to understand and follow the eKYC process designing a user interface that is intuitive and easy to understand is a must. Use clear instructions, progress indicators, and detailed guides to help your customers follow the instructions without any trouble.
3. Leverage AI and ML
Though most of the modern eKYC systems come with robust technologies, you further have to ensure the verification process is automated.
Advanced technologies like AI and ML can not only automate the entire process but also provide an extra layer of security and fraud detection. If your current eKYC solution does not work on AI and ML, switch to one that does.
4. Data Encryption and Storage
As a business, there is nothing more important for you than the personal data of your customers. Ensuring data safety is not an added service – it is the right of your customers.
For the same reason, it is essential to use advanced data encryption and secure storage methods. First, it is essential to ensure the data is not stolen. If it is, the second important thing is to ensure it cannot be used for illegal methods by enabling data encryption.
5. Regulatory Update and Monitor Systems
Timely monitoring of your eKYC system is important to ensure it works fine and serves its purpose.
Every business like yours must have a separate monitoring department that keeps an eye on every activity and ensures that the systems are working properly.
Timely security audits and penetration testing must be a regular practice. This way, you can counter any threats promptly.
Conclusion
The eKYC solutions have proved to be quite effective in not just providing your customers with a secured onboarding process, but also making sure the valuable data remains protected after the customer onboarding.
Understand the importance and apply the tips mentioned above to ensure your customers can enjoy the onboarding experience they deserve.
DigiPay.Guru is a globally recognized fintech solution provider that offers advanced digital wallet software to banks, fintechs, financial institutions, NBFCs, and businesses. Our comprehensive suite called DG Bank provides products and services such as Mobile Money, Agency Banking, International Remittance, eKYC, Prepaid Cards, Merchant Acquiring, and Scan & Thru.
