Digital democratization has created many billion-dollar industries that have become part of our daily lives. From the way to connect with our friends and family, to how we order food online and most importantly, to how we use and get access to data and our financials. The arm of the digital revolution has truly lapped each and every sector in some way.
One of the most relevant and innovative industries that digital democratization has truly made a mark is in the financial service a.k. a FinTech business especially with the onset of using facial recognition. The marked trend towards mobile banking and digital democratization has led the PayTM, PhonePe, GooglePay, State Banks, etc. to meet the increased need for information and fast access from anywhere in the world, through the click of a button.
These opportunities that have been created as a result are one which affects customers in unprecedented ways. However, integrating finance and technology into simple, well-oiled machinery that is global yet meets the demands of locals is the sweet spot. Though that requires a primer innovation, and a crucial aspect of it is Online Identity Verification or KYC Process using facial recognition.
Online Identity Verification accelerating the best of the advances in digital banking using facial recognition
Lakhs of transactions take place digitally, and Fintech businesses are at the intersection of the digital revolution and financial services. To provide frictionless service compliance with government regulations and complete risk assessment of each individual is important. So using facial recognition Fintech businesses are keeping a vigilant eye on financial crimes like money laundering, identity theft, terrorist financing. They are providing a 360-degree cybersecurity overview that guarantees complete data privacy and control to highly confidential information for each and every customer needs a tool that can set standards and is highly reliable.
So, in today’s world, using facial recognition Online Identity Verification or KYC Process is integrated within the framework of digital and financial services platforms. This tool allows personal/business identity and verification as and when you wish to join a FinTech platform for your needs and services — all by following a few simple steps and without having to step out of your home.
The KYC process in FinTech businesses and how it is done
In the past, financial institutions and companies have been prone to many financial crimes like money laundering, bank fraud, insurance fraud, embezzlement, identity theft, and many suspicious activities. As a result of these threats, global regulators have drawn up stringent measures that identify scamsters, hackers, and provide a strong tool against the fight.
Fintech businesses face similar difficulties and are now making use of the best of the technologies like, facial recognition that enable Online ID Verification to provide secure and seamless digital banking for customers.
Components of the KYC process in FinTech businesses
As Fintech businesses have evolved to become more digital, more transactions occur on screen rather than in person. These digital transactions need to be augmented with due diligence that ensures security and identity are given the required importance.
The Online ID Verification process takes into attention the following —
Financial Transactions and History
Risk Profile and Assessment
Monitoring of accounts and alerting in case of suspicious activity
Having said that, the following take into consideration that makes up the components of the Online ID Verification process.
Customer Due Diligence – When a customer is onboarded, the business carries out a CCD process. During the process, a risk profile is assigned to each individual. This is done through customer identification using facial recognition and verifying their personal details by screening against government records, fraud records, and sanctions against Politically Exposed Person records.
Enhanced Due Diligence – This process is the second layer of verification process where the identity of each customer is assessed by screening through AML and checks are performed thoroughly from criminal databases across the world. In case a customer/business is assessed as high-risk, then an enhanced, more in-depth analysis is performed by screening against media agencies, government records, and law enforcement records.
Continuous Monitoring – A proper and constant identification process is set up for each customer’s lifecycle. This is mostly done for high-profile customers, and this process involves continuous monitoring of their financial records for suspicious activities to avert any potential data breach or cyberattack.
Revolutionizing Fintech Businesses — Technology Integrated Biometric Identification
Today opening a digital account to perform digital transactions is a matter of mere hours, and is enabled by using facial recognition for a speedy, reliable, and advanced digital identification processes.
Using real-time identification, a customer is categorized for their risk profile, and their identity proof is stored in the database for future references. Customers need to upload their voter ID card, Aadhar Card, driving license, Passport, or credit/debit card to start the verification process. Third-party integrations allow these documents to be verified using facial recognition from a globally available database. These documents are checked for their authenticity and relevance.
As part of the automated online process, Fintech businesses usually have a maximum number of clean and engaged customer databases. On the flip side, identity verification at manual banks is outdated and takes a lot of time.
Facial recognition is perhaps the fastest, cleanest, efficient, and most secure solution for Online Identity Verification. Using the latest advancements in facial recognition technology, real-time video/photographs are analyzed for liveliness, imposters holding photos of others, recorded video, and consent verification through OCR technology. And unlike passwords, cyberattackers can steal or exploit biometrics verification because of its real-time and encrypted authentication process.
FinTech is no more an isolated sector, financial experts are also required to understand it. For any FinTech business, the right and the most critical parameter is perhaps security and identity verification. Lakhs of customers trust FinTech business to offer the best and most reliable financial solutions and so, preventing financial crime must be the top priority for any FinTech business — and Online Identity Verification using facial recognition is a primer for that.
The precision through which security and customer experience are provided for customers holds excellent value, especially in customer growth. By capturing facial cues, storing relevant information on encrypted databases, one can check and match the identity of any customer without compromising on anything.
The best part of Online ID Verification using facial recognition is that it eliminates the need for redundant processes like traveling to the bank for verification or having to need to keep passwords and change it fortnightly. The future of FinTech businesses is here, and it involves biometric capabilities.
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