Digitization has changed the way people use and interact with financial services and other allied sectors. Today, banks, financial institutions and related businesses have been forced to adopt a technology, which is certainly beneficial for the end user, but also simplifies the work of these businesses. KYC, or Know Your Customer, is required for compliance and is the simplest means of identity verification. Earlier, people had to fill up a KYC form, had to submit physical copies of relevant documents to get the process done, but with digital KYC, it’s a much simpler means for businesses and consumers alike. Here’s more on what you need to know to adopt digital KYC for your business.
How does digital KYC work?
As the name says, digital KYC allows you to verify the details and identity of the consumer digitally. You need to invest in a service, which will provide an API for completing the process. The API will offer access to the basic KYC information, such as name, address, email address and phone number. Most of the advanced APIs rely on the bank account of the user as a source, so bank accounts, transit and account numbers can be verified immediately, including real-time balance. Businesses can also access 12 months of transaction history. With digital KYC API, you can get 99% reliability, which is no joke.
Selecting digital KYC API
If you are looking for a service that simplifies digital KYC and offers an API for your business, you need to first check if they support all major banks and credit unions. While you can always get a demo as how the API works, but also take time to see the list of institutions that they cover. You must also get the choice to verify KYC for both individual and business accounts. The kind of support offered for integration is also important, and you must check if the API is designed in a way that developers can complete the integration immediately.
Should you spend on digital KYC?
Absolutely. With digital KYC, you can get away with some of the simplest concerns that people have with regards to physical forms. It also eases the task of your own team, and yes, you can do away with the errors, misuse of information, and forgery concerns that are always related to physical paperwork. To be more precise, digital KYC is the need of the hour, and it’s time that your company embraces it.