Identity verification solutions for Fintech

KYC Compliance is mandatory for fintech companies for minimizing the risks of crimes. “Know Your Customer” system implies identification and verification of the user’s identity to promote account opening or completing transactions. In a nutshell, the system helps banks ensure that their customers are who they claim to be. If a client fails to comply with the KYC requirements, an institution can suspend a business relationship with this person or organization.
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The Importance
of KYC and AML in Fintech

In the modern business world, KYC is a vital element in countering financial fraud and money laundering, with user identification being the most significant aspect as it makes the primary step to succeed in the other stages of the process.

The operations of financial institutions today are largely affected by the global anti-money laundering (AML) and countering the financing of terrorism (CFT) procedures. Companies have to comply with international regulations and standards, which are integrated into national laws. The respective rules include directives AML 4 and 5 and preventive activities such as KYC for client identification.

Banks define the KYC procedures as those that embrace all the necessary measures to assess and manage risks and ensure that their clients are real. The respective client-onboarding procedures are intended to identify and eliminate illegal schemes.

The Importance of KYC and AML in Fintech
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While the standard checking measures typically include ID verification and liveness check, the KYC/AML system in the fintech sector can comprise the following additional steps:
  • Database screening and sanctions lists monitoring
  • Document expiration monitoring and the proof of address
  • Source of funds check
  • Biometric check
KYC and AML regulations compliance are necessary for banks to fight fraud. Fintech institutions bear all responsibility, and in case of non-adherence, they can become subject to penalties.
Why Choose Our Service?
KYCAID provides qualified verification services to help fintech organizations facilitate customer relationships, remove risks, and enhance business processes. Trust numbers, not words: we work in more than 248 countries and check more than 10,000 kinds of documents.
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Our compliance system will help you achieve great results.
We ensure strict correlation to all industry security demands.
All kinds of documents are verified instantly.
KYC Documents and eKYC

fulfill KYC checks, an institution uses reliable sources of documents and information. Clients must provide credentials to confirm their identity and address. Thus, to open a corporate account, a company has to submit several types of documents for its staff, board members, and shareholders.

Step 1: Social Security numbers
Step 2: The photo ID and passport copies

eKYC is the same procedure as KYC, just completed online, without the customer’s physical presence. Its feasibility has been increasing throughout recent years as its efficiency enhances with the use of artificial intelligence. eKYC captures information from IDs and extracts digital data from smart IDs by using various methods of online check.

Digital On-boarding

Since the global pandemic has pushed both financial institutions and their customers to transfer their activities to digital channels, KYC onboarding with facial recognition online is gaining traction. Thus, In Q2 2020, 64% of initial checking account openings were conducted online. This tendency is forecasted to preserve.

Another trend shaping the fintech landscape is the customers’ preference to use smartphones for internet access. Experts expect that by 2025, 72% of all internet surfers will use only smartphones to access the web. Therefore, businesses should develop a mobile-friendly onboarding experience.

How does digital onboarding go?
The digital identification process typically requires a selfie made by the customer and the software that has a liveness detection ability. Liveness detection is the procedure that confirms the selfie was taken from a live person.
What is proper digital onboarding software?
So, which capabilities should digital onboarding software possess to comply with the regulations and customer expectations?
  • Video KYC (video identification)
  • An ability to leverage biometrics via online and mobile channels
AML and KYC compliance

Apart from countering the risks and preventing fraud, international regulations also bring a range of challenges to the fintech industry players. To address those challenges, organizations need to consider the respective measures:

  • Improve the understanding of their clients, beneficial owners of legal entities, and their financial dealings;
  • Apply more rigorous client due diligence
  • Check user identity and share information with central administration

AML&KYC service solutions are developed to help organizations manage the risks, carry out customer due diligence and adhere to the highest security standards.

The software works by providing:
AML screening: the monitoring of risky clients for customer due diligence.
Correspondence to regulatory requirements: maintaining compliance with regulatory requirements (FATF, CySEC, FINMA, MAS, and more).
Process automation: reducing the workload on employees by automating the process.
Digital ID Verification

The procedure enables an institution to automatically obtain consumer demographic data, with the following integration into enterprise systems.

How do we verify identity online?

Our online verification process is extremely easy. It includes a photo or video check. Video is considered more reliable since it can confirm that there is a real person behind the screen. For this purpose, you may be requested to turn or tilt your head.

To pass the verification, a person needs to perform several actions either at the organization’s website or through a mobile application.

  • Allow accessing their camera and microphone;
  • Demonstrate their documents from both sides;
  • Smile at the camera or perform other actions to confirm that the person is real.

Our online verification process is extremely easy. It includes a photo or video check. Video is considered more reliable since it can confirm that there is a real person behind the screen. For this purpose, you may be requested to turn or tilt your head.

To pass the verification, a person needs to perform several actions either at the organization’s website or through a mobile application.

How can our solutions enhance your operations?

We make ID verification a breeze, as it takes little time and does not require the user’s physical presence. Which advantages does it bring to your organization?

Enhanced protection. Several security levels restrict unauthorized access to your data.

Repelling scammers. It becomes virtually impossible to get all the data that allows reaching your account.

Elevating customer satisfaction. Easy and quick procedures enhance customer experience.

Therefore, advanced technologies aid fintech companies in performing all the necessary procedures to ensure regulatory compliance, minimized expenses, safety, and a customer-oriented approach.

Let KYCAID Help You Streamline Your Business and Delight Your Clients!
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