eKYC features that make customer onboarding extremely secure

 Considering the risks involved in the digital world, eKYC solutions are like a boon to any business that deals with financial data. The eKYC allows businesses like yours to identify details of the customers using electronic media. 

It is the digital version of the “Know your Customer” protocol. eKYC is used to carry out verification and authentication of customer’s personal data.

However, when designing a mobile application, eKYC is not a standalone solution. It is a collection of tools that help businesses onboard customers quickly and conveniently. 

The following are the 5 digital KYC features that are changing the way businesses authenticate their customers.

5 eKYC features that make Customer Onboarding extremely Secure

1. Face Matching

The face-matching eKYC technology can verify the identity of the user based on his/her face captured in live photos or videos. It works by the implementation of machine learning technology that picks out unique attributes of the user’s face. 

These are highly complex features that only advanced algorithms can understand and process such as distance between eyes, chin shape, width of nose, etc.

 

The data set of the attributes of the user’s face is called a face template. The face template includes only the features that the face-matching system needs to distinguish the user's face from another. There are many reasons why face matching is a reliable feature as an eKYC solution:

 

• Cameras are present in every smartphone

• Users find it easy to take a selfie or live video

• A high accuracy of up to 98% is achievable in face-matching technology

 

 

2. Liveness Detection 

In some extreme cases, even face matching is not enough because fraudsters can take a picture of someone’s ID and use it in a tricky way. Using Liveness detection, it is possible to prevent fraudsters and deepfake technologies from using static images or pre-recorded videos to fake their identities.

It is an extension of the face-matching eKYC technology to identify whether the face is actually of a real person present in front of the camera. For liveness detection to function from the users' point of view, users are asked to blink, grin, turn, nod, make random faces, etc. in front of the camera.

The Liveness Detection feature of the eKYC solutions ought to be capable of:

• Analyze real-time videos and photos.

• Record the object moving, even the smallest movements. By doing this, you can lessen the chance of presentation attacks and image/video playback.

 3. Optical Character Recognition:

The OCR technology was invented in the 1900s and now it is playing an integral role in eKYC solutions. In the OCR technology, the data is extracted from the images of the documents that users take using their smartphones. 

This data is then compared with verified data present in the backend such as of government, banks, and other financial institutions. The extraction process is quite fast and takes 2-3 seconds with a high accuracy of up to 99%.

 

It can check a plethora of documents such as passports, ID cards, licenses, etc. It does the following mechanisms:

 

• Check ID number and bar code accuracy

• Authenticate details like name, date of birth, and address

• Detect the document's physical attributes like crumpled or folded edges, creases, and folds.

• Detect photoshopped or fake images 

4. Fraud Detection:

Fraud Detection leverages ML and Advanced data analytics to detect fraudulent activities. In technical terms, the goal of a fraud detection system is to spot unusual or suspicious activity. 

Its integrated algorithms would gather and examine all accessible data regarding both honest and dishonest activity. Fraud detection can determine whether a particular transaction or recorded ID document is fraudulent by using the data it has collected. 

 

Generally, customers cannot see the results of fraud detection. It functions more like a background, back-end process that powers all other functionalities.

The best time to use fraud detection is at onboarding, which is the beginning of the customer-bank relationship.

5. E-signature 

Using an electronic signature on crucial contracts and other documents allows users to quickly and anywhere on their mobile device authenticate information at any time.

 

It also assists banks in minimizing the laborious paperwork.

 

A portion of documents can now be safely maintained on the cloud with e-signature, making it considerably simpler for businesses and their customers to obtain and manage these records. Employees will have less physical documentation to maintain, freeing them up to concentrate more on their primary responsibilities, which include providing better customer service and assistance.

 

The Final Words!

eKYC is not only preventing fraud and laundering activities, but it is also a way towards sustainable economic development. To ensure that your business onboard trusted users and has a safe operating environment, it is important to work in the right direction. 

With eKYC, users can be assured they are landing in the right place, businesses can be assured they are onboarding with the right solution, and thus, a verified space for all the transactions. 

DigiPay.Guru is a globally recognized fintech solution provider that offers advanced digital payment solutions to banks, fintechs, financial institutions, NBFCs, and businesses. Our comprehensive suite called DG Bank provides products and services such as Mobile Money,  Agency Banking, International Remittance, eKYC, Prepaid Cards, Merchant Acquiring, and Scan & Thru.