Know Your Customer (KYC) refers to the process of verifying the identity of your customers, Ultimate Beneficial Owners (UBOs) and third-party businesses during onboarding and throughout the customer journey. The KYC process typically includes the identity verification practices used by regulated bank customers to assess and monitor customer risk. KYC verification is a legal requirement for anti-money laundering (AML) measures.
How do you know someone is who they say they are? How do you answer this question when your customers aren’t sitting across the desk from you? According to ConsumerAffairs, cases of identity theft have soared by 584% over the last 20 years, demonstrating how critical KYC checks are in customer relationships.
For financial services companies in particular, KYC compliance has a huge impact on how they enable customers to open accounts and perform financial transactions on their preferred device. Customers want to bank online, but banks must contend with AML and KYC requirements while also fighting fraud, financial crimes, terrorism financing and other criminal activities.
At minimum financial institutions must collect the following information for identity verification:
Proof of identity can be verified by documents like passports, driver’s licenses, or public utility bills. The customer onboarding process in high-risk industries such as gambling or cryptocurrency may trigger enhanced customer due diligence checks on public databases, consumer reporting agencies, and watchlists.
To help meet your KYC regulatory obligations and build a comprehensive risk assessment profile, you need an identity verification solution that can deliver convenience to your customers and protection for your business. Electronic Know Your Customer (eKYC) is simply using online processes to verify customer identity and customer transactions. More and more financial services companies are using eKYC to onboard and monitor their clients.
They are looking to mobile and web-enabled solutions that leverage on-device technology, frictionless risk signals, biometric authentication (such as facial recognition with liveness detection), compliant machine learning and identity experts to achieve accurate identity results within a seamless digital environment your customers want. eKYC is quickly becoming recognized as a legally valid form of identification, and is widely used by companies to verify customer identity and comply with AML regulations. For example, the Reserve Bank of India has allowed the use of eKYC for opening bank accounts and investing in mutual funds, and several Indian crypto exchanges use eKYC to onboard customers.
Jumio enables financial institutions to fulfill KYC requirements with accurate, real-time online ID and digital identity verification. Our solutions have helped banks and other financial institutions replace slow, ineffective and manual KYC processes with more automated solutions that can be embedded within the online account setup and onboarding experience.
Jumio's AI-powered end-to-end identity verification and authentication solutions deliver key benefits to organizations striving to maximize onboarding and meet KYC and AML regulations.
Easily service your global client base and meet compliance mandates in multiple jurisdictions. Jumio supports over 5,000 identity document types in over 200 countries and territories.
With a cross-device verification process, you can easily verify your customer’s identity across platforms including mobile, web and API.
Streamline the customer experience and save time and money with a simple onboarding process for new customers.
Instant feedback helps users take a high-quality scan and selfie on the first try, minimizing frustration and abandonment.