A Know Your Customer (KYC) service provider can help you navigate the complexities of the compliance process and provide you with the technology tools to authenticate client identities efficiently. But with KYC technology advancing rapidly and the field of providers continually growing, choosing the right solution can be a challenge. Here's our guide to finding the right KYC service for your needs.
Incode is the identity company that is reinventing the way humans authenticate and verify their identity online to power a world of trust. Incode’s products are being used by some of the world’s largest financial institutions, governments, marketplaces, hotels and hospitals. Omni delivers the highest standard in security, user experience and regulation with a set of proprietary, machine learning, computer vision, anti-fraud and digital onboarding components.
For many organizations, safeguarding customer data, company information, trade secrets, and confidential information continues to be difficult, especially as cybercriminals work on developing new ways to beat even the most advanced security measures. Due to the susceptibility of other security measures to breaches, many organizations are implementing biometric authentication technologies.
It’s never been easier to be someone else on the internet. From social media networking to online shopping and even digital banking, the explosive consumer shift to online transactions has created enormous opportunities for cybersecurity crimes and widespread digital identity theft. According to data supplied by the Federal Trade Commission (FTC), nearly 1.4 million reports of identity theft were disclosed in 2021 alone, which cost consumers a whopping $5.8 billion. With the sheer volume of identity theft and cybercrime increasing year-over-year, more institutions have started to adopt selfie ID verification tools to provide more secure customer experiences. Selfie verification services can help businesses quickly confirm if a customer is really the individual they claim to be— whether they are opening a financial account, applying for an employee position, or verifying their age online.
What is the KYC Process?
The Know Your Customer (KYC) process is a set of identification processes and requirements that financial institutions employ while onboarding clients. These client onboarding procedures protect the financial institutes against fraud, corruption, money laundering, and terrorist financing. It essentially helps these institutes access their customers’ identities, allowing them to find the source of their funds and anticipate any risks associated with their financial activities.
It was not so long ago that a banking manager would sit across from a new customer at a brick-and-mortar branch and ask the customer to hand over a physical photo ID and a pay stub and have to fill out reams after reams of paperwork. While a small percentage of banking customers today still prefer to go to a physical branch to do banking business, today's customer onboarding process can be completed without ever leaving the comfort of your home. Through modern technologies, such as artificial intelligence and connected databases, your customer onboarding process can be executed faster and at scale while providing greater convenience for your customers.
This article will define digital identity, its use, and how organizations can ensure their customers' digital attributes are kept safe through digital identity verification.
Identity verification and authentication are essential for secure transitions, data, and account activity. Yet, these terms can be confusing or interchanged in an evolving digital world. Your company can alleviate complicated onboarding and log-in requirements while boosting security and efficacy by creating a quality identity identification and authentication process.
Identity proofing provides an effective way to verify that your online customers are who they claim to be. Knowing how to conduct ID proofing can protect you and your clients from fraud, providing a better experience for your customers and building a better reputation for your brand.
Digital identity verification is vital for maintaining the security of online accounts and transactions. With criminals constantly developing more sophisticated ways to perpetrate identity theft and impersonate victims online, investing in identity verification solutions has become critical for protecting digital identities.
What Is Identity Authentication vs. Verification?
Authentication vs. verification: they sound similar, but they’re two distinct and equally essential components of the online security process. User identity verification confirms that new customers are who they say they are, while authentication checks whether the legitimate account holder is accessing a customer account. While these two procedures are essential parts of customer identity checking procedures, they have some key differences. They involve different user data, they are performed at varying times during the customer lifecycle, and they take different amounts of time. But they also share some important similarities. Both procedures are critical for fraud protection, cybersecurity, and regulatory compliance. Both can be combined with biometric technology for enhanced effectiveness.