Know Your Customer, commonly known as KYC is a standard process for identity verification that happens during transactions in regulated industries or before and during any financial relationship between two businesses or between a business and a customer. KYC is helpful in scenarios when an individual wants to open a bank account, take out a loan, buy insurance policies, etc as it allows companies to verify the client’s identity and also do a background check. 

Digital eKYC Service as it is an advanced, more reliable and efficient approach. 

eKYC: An Introduction 

If explained in layman’s terms, then Aadhaar eKYC or Digital eKYC is simply the digital form of the KYC process that eliminates the need for the physical presence of an individual for identity verification. The cutting-edge online approach employs advanced automation technology that streamlines the verification process and makes it more safe, efficient and more agile. 

In eKYC Online the information is collected digitally and the user’s identity is verified using the UIDAI database. During the process, users receive an OTP on their registered mobile number linked with Aadhar and they then submit it for further verification. Furthermore, instead of physical verification, the documents are fetched directly from a Digital Locker that holds information like PAN, Aadhaar, Passport and other official documents. Digital locker is a safer alternative as only authorized people can have access, hence, integral information is saved from terrorists, frauds and other illegal activities. 

How Is Aadhaar eKYC Solution A Better Alternative To Traditional Method?

Incorporating eKYC Solutions instead of traditional KYC methods allows companies to accelerate their process in aspects like onboarding, due diligence conduction and ongoing monitoring. Additionally, the chances of fraud activities are also reduced due to the encryption.   

In comparison to the manual KYC process that requires individuals to be physically present and carry all the documents, the Electronic Know Your Customer process is a paperless transaction that allows customers to open accounts from anywhere. With Digital eKYC Service, a person can complete the identification process remotely and all the important legal documents are fetched from Digilocker safely. 

Of course, Digital KYC allows businesses and customers to experience the power of automation but it also adds an additional layer of security and prevents financial crimes and illegal activities. Meon Technologies, being an experienced eKYC Service Provider delivers a robust and agile identity verification method that empowers businesses. 

Aim Of Aadhaar eKYC Procedure 

The motive behind Aadhaar eKYC Online is to give a better customer experience to users and make their journey of opening an account a lot more smooth. The elimination of extensive physical paperwork and manual intervention fastens the process. Being a new sensation, their demand has been witnessing a year-by-year growth. Digital KYC has been raising industry standards and bringing advances in efficiency and security. 

Benefits Of Using Digital KYC 

Here are a few of the benefits of using eKYC:

1. Faster and Simpler 

It is fast and simple due to the usage of automated systems that speed up the whole eKYC Online process. Thus, the process completion is done in a matter of minutes or hours instead of days or weeks.

2. Cost-Effectiveness 

eKYC helps businesses discover multiple opportunities to save time and money. Moreover, it offers customers a more streamlined and low-effort experience. 

3. Real-Time Checks 

With everything being digital, firms can easily match the standards required by KYC laws. Further, additional customer screening and monitoring via real-time online and database checks can be done hassle-free. 

Various Methods Used In eKYC 

Different eKYC Service Providers use a wide range of methods and technology, including: 

1. Biometrics 

Biometric data like voice or facial recognition is comfortable for customers as they are not required to remember any security pin/information. Secondly, most smartphones have the ability to click high-quality photographs, meaning there is no need for any additional equipment. 

2. Document Recognition 

Digital versions of official documents like passports, PANs, birth certificates, etc. can be done easily through smartphone cameras. Advanced facial recognition software can further assist in making sure that a customer’s photo matches their photo ID. 

3. Two-Factor Authentication & Multi-Factor Authentication 

The step involves asking customers to verify a transaction using a second token or across multiple channels to which they have access. This reduces the chances of fraud. 

4. One-Time Passwords (OTP)

Overtaking the traditional static passwords that had high chances of breach, one-time passwords provide extra security against theft as they are only valid for a limited time and become invalid after a single use. 

5. Trusted Data Sources 

EIV (electronic identity verification) can check individuals or entities against government registries and databases, whitelists and official sanction lists automatically. It may also use online data like news stories and social media profiles.

Wrapping Up 

Irrespective of the industry, verifying a customer’s identity through a trusted eKYC service provider is crucial for any business in the digitally dominated world. The smoother process makes the customer experience better. Meon Technology being a reputed eKYC Provider, can help your business do the Digital KYC process efficiently and securely. 

Original Refrance – https://aadhaar-ekyc.odoo.com/blog/aadhaar-ekyc-2/why-aadhaar-ekyc-is-a-better-alternative-to-the-traditional-manual-kyc-process-5