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8 Reasons You Should Switch to Biometrics Authentication for Digital Onboarding

  1. © Panamax Inc 8 Reasons You Should Switch to Biometrics Authentication for Digital Onboarding
  2. © Panamax Inc 2 • Customer Convenience • Reduced Turnaround Time • Improved Compliance and Security • Incredible Cost Savings • Increased Customer Acquisition • Room for Innovation • Supports Digital Workplace • Growth of Formal Economy Why Should You Switch to Digital Onboarding Powered by Biometrics Solution?
  3. © Panamax Inc Know-your-customer (KYC) 3 Besides its cost-effectiveness, digital KYC solutions are vital in today’s digital era, where industries are scaling up their online capabilities, including financial services, education, entertainment, restaurants, and healthcare. Let’s understand the e-KYC process for digital customer onboarding and how biometric authentication can transform the overall experience. Many industries leverage AI-powered smart biometrics solutions to counteract security threats and meet updated know-your-customer (KYC) standards during client onboarding. Advanced biometric authentication provides an additional layer of fraud prevention by digitizing the processes for e-KYC. Digital onboarding based on e-KYC is the most reliable, secure, and faster way of authenticating identities, which is also resistant to counterfeiting and spoofing. A recent World Bank report cites that moving to e-KYC reduces the average cost of customer verification from $23 to $0.50, and it takes no time compared to five to seven days when done manually.
  4. © Panamax Inc Understanding e-KYC Process for Digital Onboarding 4 The e-KYC process is the first step in the digital customer onboarding and identity lifecycle, and it consists of three main components: • Document Verification or ID Capture • Biometric Authentication • Risk Management and ID Affirmation
  5. © Panamax Inc Document Verification or ID Capture 5 Document verification requires secure and accurate data capture from a government-issued trusted document. Businesses can use AI-powered OCR (Optical Character Recognition) technology to auto-capture the data seamlessly. This e-KYC component automatically identifies the type of document, edition, issuing country, and extracts all required fields. It also extracts the portrait image and converts it into a proprietary biometric template for biometric authentication.
  6. © Panamax Inc Biometric Authentication 6 Customers must prove their authenticity by being physically present to complete the digital onboarding process. There are three ways digital KYC solutions can accomplish this process through biometric authentication: • Fingerprint recognition: It requires a fingerprint sensor designed to pick up on fingerprint patterns and link them to an individual. • Iris Recognition: Iris scanners identify unique patterns in an individual’s iris to verify identity. • Facial recognition: It uses a 2D or 3D depth camera to identify facial vectors and matches them to individuals. However, only select expensive cameras are designed to perform iris scan that is fast and highly accurate. Dirt, oil, and other hygiene concerns may compromise the efficacy and integrity of fingerprint sensors. Facial recognition can be considered a superior biometric method because it is affordable, fast, flexible, and accurate. Multi-factor authentication based on facial recognition requires the user to take a selfie which then compares to the cross-verified and genuine image extracted from the document. Besides, this biometric method enables active and passive liveness detection technology based on deep neural networks to detect and prevent digital and remote ID verification frauds.
  7. © Panamax Inc Risk Management and ID Affirmation 7 The identity affirmation process uses layers of intelligence like device intelligence, behavioral biometrics, and trust consortium, depending on the risk appetite. These techniques analyze the user and environment activities to build a dynamic profile for each event that can be fed to a risk engine to validate customers’ identities and interactions. Financial institutions can implement Anti-money Laundering and Countering the Financing of Terrorism regulations to the ID affirmation process to mitigate the risk of identity theft during and after the digital onboarding process.
  8. © Panamax Inc Reasons why to switch to biometrics authentication 8 Digital onboarding allows customers to enroll in new services without having to leave the comfort of their homes to get their KYC information authenticated. As the e-KYC process is entirely digitized and automated, it appeals to those who want their authentication done remotely. Customers can choose any mobile device to complete their e-KYC process, which only requires filling out a form and a few clicks. Customer Convenience
  9. © Panamax Inc Reduced Turnaround Time 9 Governments and central banks encourage using AI- powered facial matching software for V-CIP (Video- Customer Identification Process). The automated digital KYC solution allchows more data to be captured quickly from minimal input. Such a frictionless e-KYC process reduces the turnaround time for customer onboarding, which is hugely beneficial for businesses with large customer bases.
  10. © Panamax Inc Improved Compliance and Security 10 One of the essential benefits of the e-KYC process is enhanced compliance and security during customer onboarding. The digital identity verification mechanisms comply with stringent and evolving regulations such as the 6th AML directive and Payment Services Directive. Cloud solutions also provide access to risk management services vital in the onboarding process to reduce application fraud.
  11. © Panamax Inc Incredible Cost Savings 11 The biometrics solution-based, digitized onboarding process significantly reduces the cost of paper documents, printing, and other expenses associated with traditional onboarding. Officials or customers are no longer required to travel to various locations to perform in-person verification of KYC documents. Smart biometrics expedites the e-KYC process and eliminates the need for a special KYC analyst, freeing up resources for more critical business activities.
  12. © Panamax Inc Increased Customer Acquisition 12 Organizations can reach a broader customer base through digital onboarding, including those who may have yet to enroll in their services using traditional onboarding. The convenient and smooth process attracts people from the young generation. The seamless customer experience also increases customer satisfaction and loyalty, retaining more customers.
  13. © Panamax Inc Room for Innovation 13 The entirely digitized nature of the e-KYC process leaves much room for innovation and improvement using some emerging technology to strengthen its integrity. Machine learning can be used on V-CIP for lower false positives, saving the time spent screening for false positives. Businesses can also implement liveness detection technology to detect and prevent increasing presentation attacks.
  14. © Panamax Inc Supports Digital Workplace 14 The manual onboarding process can be clumsy and time- consuming. Gathering identity information and cross- verification can be laborious for businesses and customers alike. The advanced identity verification process allows organizations from various sectors to digitally accept ID documents and KYC information. Whether it is customer onboarding, bank account opening, SIM card registration, driver registration, or e-VISA issuance, e-KYC declines the need for paperwork and physical presence.
  15. © Panamax Inc Growth of Formal Economy 15 Adopting e-KYC will mark growth in the number of users in the formal economy. The digital identity lifecycle can be used to provide formal and government services to more people, especially those from rural settings. The innovations in the e- KYC process support vernacular languages and text-to-speech mechanisms to encourage people from underbanked regions to subscribe to safe microfinance services.
  16. © Panamax Inc Modernize Customer Onboarding with Smart Biometric-based e-KYC 16 Electronic KYC powered by innovative biometric solutions can empower organizations to secure their assets and information more effectively. It is also more compliant than manual customer identity verification and genuine user confirmation during the entire customer lifecycle. Fingerprint authentication, AI-powered facial recognition algorithm, document verification, and passive liveness detection can contribute significantly to automating, optimizing, and customizing the e-KYC process to minimize the risk of identity fraud. With many other benefits, such as convenience, speed, and increased customer acquisition, it is only wise to integrate advanced biometric authentication into an e-KYC process for digital onboarding purposes. Our Smart Biometrics solution helps enterprises, governments, and API partners verify users in real-time using robust features, including customizable workflows, API-based framework, data accuracy, and document management.
  17. © Panamax Inc Headquarters Panamax Inc. 100 Quentin Roosevelt Blvd Suite 503 Garden City New York - 11530 USA Contact No. +1 718 713 8417 Email Website Thank You

Hinweis der Redaktion

  1. Envisaging targets of the financial sector under Vision 2030 The envisaged targets of the financial sector under Vision 2030 included enhancing financial inclusion by decreasing the share of population without access to financial services by about 20%. However, the most dramatic increase is usage of mobile money services The adoption of mobile money services Mobile money banking services shows its ability to overcome problems of physical access and high relative costs. Mobile banking has introduced alternative channels at financial service provision to conventional banking and has provided clear, quick and convenient platforms to conduct a range of financial transactions. The adoption of mobile money service far exceeded expectations. Financial inclusion and macroeconomic stability Increased financial inclusion through financial innovations does not seem to have compromised financial stability. First, the stock of e-money is backed 100% by accounts held at commercial banks. Second, while there has been increased instability in monetary relationships, reflected in a decline in the income velocity of circulation and an increase in the money multiplier undermining the conduct of monetary policy which assumes stable monetary relationships, stability seems to have been re-established since 2010. Financial sector reforms have undoubtedly strengthened Kenya’s banking sector in the last decade or so. Major indices show an improvement, including: (a) the capital adequacy ratio; (b) rates of return on assets (ROA); (c) non-performing loans; (d) growth and composition of credit to the private sector; and (e) composition of banks assets and liabilities. Cost of credit and interest rate spreads One of the key criticisms of the Kenyan banking sector is that the cost of credit and the interest rate spread remains high. This has raised concerns from government, regulators and parliament, with the latter trying severally to introduce legislation to control them. As a consequence, both deposit and lending rates rose sharply as the Central Bank Rate (CBK) attempted to control inflation and stem currency depreciation. As seen in the figure, the increase in the spread was because banks raised the lending rate more than the deposit rate. The spread subsequently gradually decreased as the central Financial regulation in Kenya: 22 bank has relaxed monetary policy, lowering the CBR. Prudential regulations in Kenya Among other regulatory issues, Kenya has increasingly moved into universal banking reflected in increasing share of net commissions and fees in the banks' total income. The country now has banks that own insurance companies, others have set up insurance agencies to push forward their concept of bank-assurance; while others own stock brokerage firms. Hence there have been increased synergies between the banking, insurance and securities sectors with removal of regulatory barriers between the different segments of the financial sector. Security threats leading to the adoption of Digital Banking Following an alarming surge in cyber security threats, insufficient support, unpleasant experiences from unreliable vendors, poor integrations, license constraints and overpriced digital banking systems that threaten the sustainability of the Savings and Credit Cooperatives in Kenya, Stakeholders are relying on digital banking solutions that will support the Sacco movement to advance to new disruptive heights.