Share this page
Statistics indicate that banks lose hundreds of millions of dollars annually to fraud; however, using a selfie with liveness detection to verify customer identities as part of eKYC (know your customer) can reduce up to 90% of fraud attempts.
KYC, or Know Your Customer is a widely used process by banks and FinTechs in the financial services sector. It has always been at the heart of account opening, lending, collections, insurance, securities trading, fraud and risk management, as well as compliance, forming a crucial aspect of customer onboarding.
As the world speeds towards digitization in the wake of the COVID-19 epidemic and banks aiming to optimize and reduce their operating costs and processes, digital KYC, a paperless version of the traditional methods has been adopted by multiple institutions and, in fact, mandated by governments around the world to improve risk profiles and expand the reach of digital financial services.
In fact since 2012, 23.1% of all RegTech investments, which amounts to $878m, can be attributed to investments in KYC solutions.
Beyond the cost-saving aspects of adopting digital onboarding and eKYC, such as reduced time to manually onboard customers, lower cost of operations, decreased dependency on physical branches, lower risk, and, of course, the time-saving benefits to customers, digital onboarding offers banks a unique tool to acquire and retain new-to-bank customers.
Read the latest “MFTA SHIFT Report Vol. 5 – Know Your Customer” for more insights.
