Identity theft frauds have been increasing at an immense pace. PWC Global Economic Crime Fraud survey of 2018 stated that 49% of global respondents (executives) said that their company has faced fraud or economic crime in the last year. According to a report of insurance information institute 3 million stolen identity reports were filed during 2018 and 1.4 million of those reports were fraud-related. More than 50% of those stolen identities were used for credit card fraud with businesses and banks. This increase in fraud magnitude has made the authorities to tighten the regulations regarding the KYC (Know Your Customer) verification. Forbes stated that the world's top 10 financial institutions invest %100 billion annually on KYC.
3 reasons why your business needs an online KYC service?
Online KYC services are cost-effective:
An online KYC compliance service is quite cost-effective as compared to manual KYC compliance practices. The businesses are bound to perform KYC and many have adopted the conventional way of hiring more and more people to verify their customers. For instance, JP Morgan added another 5000 employees on their compliance team and spent $1 billion on compliance.
Online KYC compliance systems are the choice of corporate responsible and competitive companies. The businesses do not need to build their own KYC compliance solution they can easily integrate the online KYC verification solution into their prevailing system, it is as easy as adding a new plug-in to the system. Such integrations cost less as compared to building and maintaining a whole system of KYC verification. The best way to choose a compatible solution is to try free online KYC verification trials of identity verification service providers to choose the best-suited identity verification solution.
Online KYC verification is more efficient:
Online KYC verification is more efficient and effective. The online process of customer identity verification and document verification takes as little as 30 to 60 seconds, while an in-person identity and document verification can take weeks at times. Hence causing friction in customer onboarding. Most of the businesses that are not typically an online business are also providing online services to their customers, hence online KYC verification is the only best way to verify the customer identity online without causing any hassle for the customer.
Efficient regulatory compliance:
Identity theft is no more a hidden phenomenon and is affecting all kinds of businesses either it is an online business, financial institution or a non-profit organization hence, KYC compliance is regulatory compliance in every region of the world. Online KYC verification helps businesses to effectively comply with the KYC regulations in their region.
For example, recently the UK has amended its online gaming laws. Online gaming sites are required to perform a vigilant KYC verification on their customers. The customer's identity, age, and address, etc must be identified before opening their account and letting them enter the gaming floor.
Hence the need for the executives to ponder over integrating an online KYC verification tool into their company systems. It will help them gain company value and competitive edge over their competitors.
