5 Methods for Performing Online KYC in the Banking Industry

John Show
By -


Online KYC

There are around 6.378 billion users of cell phones and the most recent technologies as a result of technical breakthroughs.If they keep increasing at this pace, there might be more than 7.33 billion users by the year 2025.

 The development of international relationships and the ability to do business with clients who are located abroad are made possible by IT and communication improvements. Online KYC (Know Your Customer) helps open multiple accounts under various titles for various purposes and conduct regular transactions. Providing an improved online user experience by recognizing the most dubious clientele, it prevents the possibility of financial crime.

Process of Online KYC

Banks require a few essential identity documents for the initial KYC verification to ensure compliance with KYC/AML procedures. These documents include a national identity card, a driver's license, a passport, electric bills as proof of residency, and some others.


If the customer is a commercial firm, the KYC process also requires extra information. These details include the company's authorized registration number, a valid trade license, a bank statement, yearly reports, and related documents.

Ways to Conduct Online KYC in Banks

To cover every aspect of the customer or beneficial owner of a corporation, there is a need for online know your customer verification. These solutions provide the following sorts of identification services:

Document and Address Verification

Companies can identify their clients by verifying their documents and addresses. The client uploads supporting documentation on the authentication interface. They hold up documents in front of their smartphone or PC to start the digital KYC business procedures. OCR (Optical Character) technology makes KYC banking efficient.

It does so by scanning uploaded files and verifying personal information and place of origin by comparing it to data in national registries. Customer onboarding is seamless since the user provides a live image together with papers for processing and verification. Once the authentication finishes, the system displays results in real- time.

Facial Biometric Verification

In online KYC services, biometric solutions quickly verify a person's identity by accurately matching their facial and forensic statistics against data in watchlists.In order to prevent illegal access, this is done.To confirm that the given image is authentic and without any similar uses of snapshots or earlier photographs, companies conduct 3D depth analysis. For the purpose of ensuring that the data on ID documents corresponds with specific facial features, biometric systems use faceprints. It recognizes factors like race, age, and gender. Digital KYC solutions verify the user's liveliness by collecting minute facial movements like blinking or smiling.

AML Screening

In order to safeguard client funds, personal data, and the financial entity's dignity from scammers, AI-powered AML screening are employed. They perform a thorough check on the concerned individual or company to find any prior instances of involvement in money laundering or funding illegal strategies.

The organization can choose the possibility of "Ongoing AML" if the individual is not presently on any sanctions or watchlists. This alerts the company or financial firm the moment the identity of their customer appears on any list for assuring AML security.

2-Factor Authentication

The two-factor authentication in KYC procedures makes sure that only authorized users logged in each session. When a user logs onto the homepage of their bank account after some length of inactivity, it instantly shuts them out due to security rules. For account security, the 2FA service creates a fresh code for each login attempt. For additional features, the best KYC provider allows the client to design a personalized personal access code.

Consent Verification

Technical developments have undoubtedly made KYC banking simple, but they have also opened a door for potential hackers and cybercriminals. Bankers can check that the authorized person is accepting the transaction by using KYC compliance software. It takes permission at the stage of opening a brand-new account and even before authorizing or liquidating a significant amount.

     An image of the user and a statement attesting to their consent to the purchase or account opening are required.

     The optical scanners used by KYC solutions check the authenticity of the note and the user's biometric data.

     With the use of this KYC banking solution, financial fraud and incorrect chargebacks are declining..

Final Thoughts

The client onboarding and compliance management processes have become easier for financial market businesses and their clients. The reason is that ID verification solutions are advancing over time. In order to safeguard both the funds of the customer and the bank's reputation, companies employ online KYC standards. The financial services enabled by AI for KYC ensure results quickly and accurately, cut risk to zero and prevent non-compliance with relevant laws.


Post a Comment


Post a Comment (0)

#buttons=(Ok, Go it!) #days=(20)

Our website uses cookies to enhance your experience. Learn more
Ok, Go it!