Multiple scandals, scams have forced regulatory authorities to come up with new reforms, norms, and regulations for the financial and allied sectors. Today, Know Your Customer (KYC) rules are more complex and stricter than ever. Firms of different sizes are having a tough time decoding the compliance aspects and keeping the costs in check, but with digital KYC, we might have a solution that will benefit everyone.
In this post, we are discussing the benefits of digital KYC for businesses.
The need for Digital KYC
Adopting digitization and new technologies is not exactly a choice for the financial sector and some of the other industries. It is necessary to keep up with the changing times, and KYC is not a choice to be precise. For those reading this and not familiar with the concept, KYC, or Know Your Customer is the simplest way to verify the identity of a consumer, and businesses have to be concerned about this as this is not just about verification, but also compliance. FINTRAC / AML regulations require businesses to follow the procedure for KYC, for which they need to verify details like the address, financial account and name of the customer.
What are the benefits?
Firstly, paperless KYC ensures that consumers and businesses don’t have to deal with too many physical documents. Please note that all regulatory requirements are specific to each country. It is also important in times when the financial sector has too many allegations related to scams and forgery. In fact, simplifying KYC is just the right step in that direction. There is also no denying that digital KYC makes so much sense for the end users, and as a benefit, businesses can ease the onboarding experience and keep things secure, compliant and simple.
To make the most of digital KYC, consider finding a service, which specializes in offering API solutions. The API will leverage the bank account of the user, so that you can verify the necessary information. Depending on the digital KYC API you are using, you will get the require support for integration. Yes, there is a price payable for that, but digitization is not a choice anymore, especially in an age when people are looking for better experience from brands. If you are using a digital KYC API for the first time, we recommend that you contact the concerned company first for a demo to know more.