Recently the concept of eKYC has been doing the rounds. But what is KYC? It is a process of identification that helps the various authorities to know their customers. The need for identification has increased due to the various kinds of scams and frauds that are going around. The concept of e KYC gets applied to various sectors. But especially in sensitive sectors like those related to financial wealth, and investment indulges in electronic know your customer.
Evolution of KYC
The procedure helps to identify and verify the customer's identity. This process includes a series of checks that helps the institution to verify its client. But due to the various series of rules and regulations, one experiences a lot of hindrance in the process. Hence, with time, one could go for KYC practice both offline and online.
Every economic agent and business, especially those related to finance, is going through digitization. In the last decade, every organization has experienced a part of the transformation with digitization. Various organizations and companies are looking forward to this process to indulge in remote operation. With the help of cutting-edge technology, including machine learning and artificial intelligence, one can transform their business while optimizing the whole process.
With the help of the eKYC process, the organizations can somehow reduce the cost and bureaucracy. It is based on machine learning and artificial intelligence that help companies comply with current regulations. It also offers the highest level of security.
However, the paper trials happen to be quite expensive and slow. It can also tend to make errors. These can be a perfect hiding place for tax evasion and corruption. With the help of the eKYC process, the transparency and speed of the digital process offer a great experience to the customer while preventing any abuse in the transaction process. Moreover, if you want to create an effective electronic KYC regime, you need to inculcate the elements for checking, very fine, and analyzing in an electric method.
Aman Khanna is an experienced financial advisor who is well known for his ability to foretell the market trends as well as for his financial astuteness. He has an MBA in finance from Toronto University as well as years of experience delivering seminars on sound financial practices and debt management.