Digital KYC Solutions are Revolutionizing Industries
KYC (Know Your Customer) is a vital component in the battle against financial crime and money laundering today, and customer identification is the most important factor because it is the first step in improving performance in the subsequent phases of the process. The global panorama of anti-money laundering (AML) and counter-terrorist financing (CFT) raises enormous stakes for financial institutions. KYC (Know Your Customer) is the process of identifying and validating a client's identification when they open an account and on a regular basis thereafter. In other words, banks must verify that their customers are who they say they are. If a client fails to meet minimal KYC needs, banks may refuse to open an account or terminate contracts and business relationships.
Why is KYC Important?
KYC improves the efficiency of processes. Important documentation such as identity evidence, residence proof, and age proof are no longer required to be submitted by an individual, allowing them to complete their task more swiftly. Regulators can apply significant reputational and financial fines if you don't follow the KYC process. Because banking is an industry with a high risk of financial fraud and money laundering, it is critical to conduct customer background checks to prevent fraudulent activity.
RPA for KYC
Financial institutions are faced with the tough task of providing stringent measures against illicit currency flows while simultaneously making a profit. Criminals' methods are becoming more difficult to trace, and banks must keep up if they are to meet their precautionary duties. KYC is an important initial line of defense, and institutions should always be seeking to improve it. Fortunately, contemporary technologies can assist them in increasing KYC efficiency while lowering expenses. With current technologies in place, KYC will no longer be a time-consuming and costly regulatory requirement, but rather an efficient and painless process, as the importance of KYC banks grows.
Comarch KYC
Comarch KYC is an RPA program specifically built for banks and other financial institutions. While KYC in AML is traditionally a labor-intensive and human-error-prone process, Comarch's KYC process in banks employs optimization through improving data collecting and input. The system uses automated processes to extract data from a variety of external and internal sources and converts it into user-friendly reports that can be analyzed further in accordance with KYC and AML regulatory requirements.
Industries that Benefit from eKYC?
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In reality, no sector is fully protected these days due to the sophisticated ways utilized by fraudsters for their detrimental operations. Digital identity verification checks are required in every business around the world, but these are the industries that demand it the most. The safety of these locations is crucial because they are the primary targets of all criminal activities.
Online Gaming
Younger gamers, such as pre-teens and teenagers, account for a significant share of the gaming market. Due to their lack of cybersecurity knowledge and increased exposure to social media, this generation is particularly vulnerable to social engineering assaults. To swindle gamers, fraudsters can use a variety of methods. They can try to dupe gamers by impersonating a friend or a game administrator and demanding access to personal information. Fraudsters will post links to phishing sites with the aim of stealing player credentials, tricking them into inputting their information, and then using it against them.
Online gaming platforms can include digital identity verification to keep fraudsters out and ensure that only genuine players are part of the community.
Betting
In the gaming sector, digital identity verification checks are also essential to ensure that all clients or players are real. Scammers who enter this profession are primarily motivated by money laundering. It becomes easy to store illegally obtained money in an environment where everyone is rolling money without verification. Digital verification techniques can be used by the gaming industry to keep money launderers away from real players.
Finance
Each year, two to five percent of global GDP is laundered, according to UNODC and Europol statistics. Digital identity verification technology can be used by banks, insurance companies, and other financial organizations to speed up the onboarding process and prevent fraud and money laundering. Crowdfunding and virtual payment platforms are attempting to make the user experience as straightforward as possible. However, it has become a big issue as a result of illicit activity. Increased client needs also present a greater difficulty.
Travel
The travel business finds it challenging to conform to KYC rules due to fake travel firms, created identities used to emigrate, and a range of other activities. Scams in the travel industry could cost more than USD 25 billion in the near future. Face and other types of identity verification can help the travel industry comply with the laws. Furthermore, these in-depth investigations will assist them in preventing scammers from departing.