Remotely verifying the identity of customers is often handled by companies, particularly telecommunications companies or banks, so it must be a secure process. This post discusses eKYC Onboarding, what it is, what it is used for, what benefits it brings, and what requirements must be met.
Table of contents
What is eKYC Onboarding?
eKYC Onboarding (KYC= know your customer) is the process of controlling companies to validate customer identity via video conferencing, especially when contracting for the first time. This verification process aims to avoid having relationships with individuals or companies making money laundering or financing criminal activities.
Many companies, because of their activity, must validate the identity of their customers during contracting a product or service in two ways:
The contribution can formally identify identity documents such as ID, passport or NIE (foreigner’s identification number).
Real identification means ensuring the identity of the people and companies that make the contracting request. Payroll, tax returns such as IRPF ( income taxes) or articles of incorporations are used for this step.
This double-identification process is done both for first contracts and when the identification data needs to be updated.
eKYC Onboarding or digital customer identification refers to the above process being performed remotely via videoconferencing.
Benefits of eKYC Onboarding
We highlight the below t eKYC Onboarding benefits:
- The identification process is fast.
- The customer saves on travel and doesn’t waste time.
- The eKYC Onboarding is entirely safe and automatic
Lleida.net eKYC Onboarding complies with legally established non-face-to-face identification procedures.
Various devices such as computers, tablets, or mobiles can be used without installing any app.
Why use eKYC Onboarding?
Much talk has been heard about the importance of compliance in companies; this is the need to meet the legal requirements they are bound to in their relationship with customers, suppliers, employees and others.
In this regard, we must not forget that, since the reform of the Penal Code in 2010, legal persons can be criminally responsible. Therefore, organizations must be strict to avoid risks in various areas such as protection of personal data, money laundering, etc.
Lleida.net eKYC Onboarding solution complies with the authorization of non-face identification procedures issued on February 12, 2016, by the Spanish SEPBLAC (Commission for the Prevention of Money Laundering and Monetary Offences). In this regard, since March 1, 2016, the agency authorized video conferencing as a form of non-face identification of clients. However, for this procedure to be used, some requirements must be met to be used:
- Video identification procedures will only apply to customers who have reliable identification documents.
- A risk analysis must be carried out before implementing the video identification procedure, and the process and its effectiveness tested.
- The procedures that are implemented must ensure that:
- The process is performed from a single device.
- That images and sound are immediately transmitted to the subject in digital format, without alteration and live.
- Or that the required subject proceeds to the immediate recording of the entire process.
- Process recording must be kept in digital format.
- During the identification process, the customer must show the front and back sides of their ID.
The International University of Valencia already uses Lleida.net eKYC Onboarding service
eKYC Onboarding service is used not only by the banking and telecommunications sector but also by the education sector. As in the International University of Valencia case, which began to use technology last year to identify students and clients.
VIU classes are developed online, so identifying students attending class is critical, and Lleida.net eKYC Onboarding provides the necessary confidence and security throughout the process.
As you have seen, the process of remote customer identification via video conferencing is a solution for expediting procedures in companies in many industries, especially when it comes to banking, telecommunications (internet, mobile or landline) and education (universities, colleges, online training institutes or entities).
thanks for this very interesting article.
in order to reduce fraud, improve user experience and optimise costs, have you ever thought about embedding mobile identity products into your kyc process?
Some of these are:
– Authenticate – verify mobile number possession silently without SMS One-Time Passcode (OTP) delivery to reduce risk and customer friction at the same time
– SIM Change / operator change Detect – verify mobile number integrity by checking if the phone number and/or SIM and/or mobile operator changed recently since Most account takeover fraud take place short after a SIM or an operator change
– Identity Match – verify the veracity of information submitted by the end customer by checking data like asserted name, address … against the data associated with the mobile number at mobile operators
– Line Type Detect – confirm line type (mobile/fix/VoIP), service provider (movistar/Orange/vodafone etc..) and service country (returns a country code) since most fraud attempts take place using a virtual number
all these verification processes are fully transparent to the user and thus reduce your fraud risk and customer friction at the same time.
happy to tell you more