What is Know Your Customer (KYC) and why it matters?

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Know your customer is a method to collect personal information of a customer and is used as concrete data about the identity of a user. The concept is a regulatory necessity in certain industries such as the banking industry as well as the financial service sector, while others use KYC services for fraud prevention. Such industries include e-commerce portals, insurance companies, and many online service providers.

Utilization of a KYC service provider is a preferred method to not only collect personal information of users but even verify them via multiple resources and technological advancements. Most of the time an ID verification service is utilized to collect reliable personal information of a potential customer. KYC for Banks is a perfect example that helps banking organizations to verify the identity of every incoming customer and even authenticate the identity of an existing customer.

Why KYC is important?

Know your customer when used just to collect information from a customer base, can serve as a reliable source of customer information. It can serve to perform various analytical checks on the customer behavior, their acquisition process and even their purchasing history or service use history. Regulatory compliance is one of the added advantages of KYC that enables businesses to comply with their regulatory guidelines. Many regulators around the globe require institutions and corporates to perform Know your customer checklist to mitigate risk and improve on service delivery.

The banking industry is mostly required to use identity verification services in order to not only identify the true identity of their potential customers but to cut down identity fraud and digital scams that continuously haunt the banking industry. KYC for banks solutions are offered with various services in order to manage the financial risk attached to the banking services.

How KYC is performed?

There are various methods to perform KYC services and it mainly depends on the competency and ability of an ID verification platform. A wide range of KYC services are offered by many identity verification services that are mainly:

  • Face Verification
  • Document Verification
  • Address Verification
  • 2 Factor Authentication
  • AML Background checks
  • Handwritten Note Verification
  • Customized Document Verification

Now there is various KYC service provider that can perform a number of these services but there is hardly any ID Verification platform that can offer all of these KYC verification services except for Shufti Pro.

Shufti Pro is a UK-based identity verification services that offer authentication services to a global clientele. Real-time verification results are provided for all of the above-stated authentication services by Shufti Pro in over 225 countries and 150+ languages. It uses Artificial Intelligence and Human Intelligence to not only verify the identity of a person but to also assess the financial risk attached to a person’s identity with the help of AML background checks. Shufti Pro performs these background checks with the help of 1000+ sanction lists and 3000+ databases. In addition to that, AML checks for Politically Exposed Persons (PEPs) are also performed by Shufti Pro in addition to ID verification.

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