Uncover KYC Verification Potential
KYC verification stands for the Know Your Client or the Know Your Customer rule. Abbreviated to KYC, it is an internationally applied procedure that businesses use to verify client identity and assess suitability to reduce the risk of illegal practices, such as money laundering, and comply with banking regulations.
In the financial and banking sectors, KYC verification stands for a mandatory due diligence process that clients must go through before getting access to services provided by a business, particularly regarding AML (anti-money laundering) checks and detection of Politically Exposed Persons (PEPs).
The latest advances in technology allow companies to carry out their KYC verification services with ease from anywhere in the world. This reduces stress on clients having to send documents via postal services or visit a brick and mortar branch to verify their identity.
In Which Industries is KYC Applied?
AML and Know Your Customer requirements are applied to all businesses operating in the financial industry, regardless of location, where there is a possibility of money laundering or financial fraud. Companies failing to fulfill their Know Your Customer obligations may fall foul of financial crime legislation.
KYC requirements may apply to your company if it belongs to banks, credit unions, financial institutions, gambling sites and casinos, wallet providers and crypto exchange.
The growing digitization trend in banking and financial services has placed automated KYC verification at the forefront of any business agenda, with many choosing to engage the latest Know Your Client software solutions.
What Are the KYC Requirements?Depending on where your clients are located in the world, the evidence they need to provide may slightly vary, but, in general, a standard know-your-customer checklist includes:1Proof of Identity
An ID card, passport, driving license, or similar legal identification document. This document should contain the client’s name, date of birth, photograph, expiry and validity date.
- 2Proof of Address
A bank statement, utility, or credit card bill. This document should include the bill payer’s name, address, date of issue, and the issuing body’s name. It should be dated within three months of the current date.3Photographic verification
If KYC services are performed in-branch, photograph verification is not required as this is done on the spot. However, for online or digital services, biometric data (e.g. selfie) is used to verify that the evidence provided relates to the actual user.
Regula Solutions for KYC ProceduresMRZ readingBarcode readingCredit card readingE-document readingVisual and textual data OCR
How You Can Implement KYC Verification?
With mobile banking transactions set to rise 121% from 2017 to 2022 and the increasing popularity of online and mobile financial services, KYC automation is becoming the future of onboarding and financial risk assessment.
KYC automation tools and software allow companies to optimize:
User registration – extract the necessary data from identification documents automatically.
Client onboarding – integrate KYC automation solutions into your onboarding process to reduce stress for potential clients.
High-profile, high-number transactions – carry out due diligence procedures at a higher pace.
Re-verify existing users – ensure you remain KYC compliant by using the latest KYC automation tools to verify your client’s updated ID data.
Automated KYC solutions use the latest technology, such as Regula Document Reader SDK, to capture and extract data from your identification document and allow for it to be verified to prevent fraud and financial crimes.
Regula Powered Solutions for KYC VerificationRegula Document Reader SDK allows companies to adapt and tailor their KYC automated solution to meet and exceed their customers’ needs and expectations without compromising on security.
Adapting Regula Document Reader SDK to Your BusinessRegula Document Reader SDK is a flexible and highly adaptable solution that allows your business to seamlessly blend it in your KYC verification process. With Regula, your company will be able to:1Verify globally and Adapt to your needs
Regula Document Reader SDK comprises 8,800+ document templates from 245 countries and territories and supports 88 languages for OCR. Adjust Regula Document Reader SDK operation to your automated KYC workflow finding/selecting the most befitting processing and integration scenario .
- 2Perform fast and efficient checks
Our one-second average document data recognition time allows your company to build efficiency internally and deliver first-class customer service without any delay.3Reduce time spent by the operator, agent or end user
The workflow is fully intuitive: all that it takes is to point a document to a camera; the rest is done by the SDK within literally a second
Which Industries are KYC Compliant?Fintech & BankingInsuranceTelecomHealthcareGovernment
KYC Automation In PracticeWhether you’re a bank, a government organization, an insurance company, a FinTech startup, etc, here’s how your organization can implement automated KYC verification with success:Use Case #1 - Banking
For banks, the growing demand to increase the provision of digital services, including banking apps and the current brick and mortar branch closures caused by Covid-19 outbreak, means that financial institutions need to develop efficient online services to help them thrive in the modern market.
Onboarding a new client is Step One of any client-business relationship. This also means ensuring a strict security protocol is followed without putting the client off the registration process.
By implementing automated KYC verification, banks and other financial service providers make security a convenience that will help them stand out against the competition while adhering to legal standards and reducing the risk of onboarding abandonment.
When accessing services online, clients simply scan their identification documents and perform biometric checks with face-match and liveness options. At the branch they can have it done by a staff member to almost immediately confirm their identity and after synchronising their data with the inner database and black lists become KYC verified.
This also reduces the time your staff spends on manual ID documents checks, entering data key-by-key and performing administrative processes. Regula Document Reader SDK can be adapted to suit mobile banking apps and web-based applications.Use Case #2 - Financial TechnologyUse Case #3 - Insurance
Integrating Regula KYC Automation Software
Get in touch directly to discover how Regula’s solution can optimize your KYC automation needs and provide your business with a secure and efficient solution tailored for you, whether you are a bank, FinTech startup, financial service provider, insurance company, or other.
Try out our FREE mobile and web demo apps to experience the power of Regula Document Reader SDK.
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