Do You Know Your Customer?
KYC Stands for “Know Your Customer”. Know your customer (KYC) policy is an important step developed globally to prevent identity theft, financial fraud, money laundering and terrorist financing. The objective of KYC is to enable banks and NBFS to know and understand their customers better and help them manage their risks prudently.The process of KYC entails identifying the customer and verifying the identity by using reliable and independent documents or information.
Why don’t you opt this Idea?
Digitization, has subjected Banks and NBFI to undergo transformation to a larger extent. The effect of technology take-off on society, financial services Companies have exposed to huge competition thereby introducing more virtual touch points that renewed the focus of Companies on developing and engaging customer relationships rather than being stereotyped as mere transaction enablers. Digitization in Banks and NBFI is a key to a more meaningful and successful KYC compliance. Digitization will ensure centralization of KYC, which may result in negating bottle necks during Internal and external audits, client on-boarding, transaction processing and many more.
Advantages of digital KYC:
Paperless KYC: The fully digitized platform eliminates the need for paper documents. However as per country specific, regulatory requirements to be fulfilled by the Institutions.
Instantaneous: Reduced manual intervention saves lot of productivity time.
Consent Based KYC to avoid identity thefts: KYC is undertaken with the explicit consent of customers and thereby overcomes the risk of identity thefts.
Real-time verification eliminates document forgery: To eliminate document forgery, real-time digital verification and confirmation of identity and address data.
Adequately parameterized: It allows configuring Institution specific Proof of Address (POA) and Proof of Identity (POI).
Simple user interface: Allows users to easily navigate through intuitive hyper linking with minimum number of clicks to access a customer’s KYC.
Highly secure: Role-based access control system ensures that only authorized users can have access to specific documents.