How does eKYC verification in banks work?

In today’s digital transformation economic landscape, best-case customer experience is critical to business success – and customer-centricity is the key factor for competitive advantage. This is especially true for organizations in the BFSI (Banking, Financial Services, and Insurance) sectors, where the digital banking model is gaining traction.

However, given the risk of fraud in today’s digital world, an eKYC solution has become a required component of any mobile banking app. Banks can now verify customers online, no matter where they are, thanks to eKYC solutions. And the process is carried out automatically, with no human intervention, while adhering to regulations.

In this post, let’s explore with SmartOSC Fintech how eKYC verification in banks works to bring the best solution.

1. Face Matching

Face matching uses machine learning techniques to identify distinctive features on a user’s face and verify them. The available information in the face-matching database is compared to those features, such as the separation between the eyes or the shape of the chin.

A user’s face template is data about that user’s face. Face templates, in contrast to portraits, only contain the information the face-matching system needs to tell one user’s face from another.

2. Liveness Detection

The technology of liveness detection is used to confirm the origin and key characteristics of a biometric sample. After that, it determines if it is a real person or a hoax, such as a silicon mask, a photograph, a video, etc.

As part of a digital onboarding or identity verification process, a selfie is used to perform the detection. Depending on whether an active liveness check or a passive liveness check is being conducted, the detection typically only takes a few seconds.

3. Optical character recognition (OCR)

The entire information on any ID is converted into text using optical character recognition (OCR) technology so that it can be input and information validated. The ID document is initially photographed, analyzed, and then converted into character codes here.

The information can then be checked against a reliable verification source using this machine-encoded text. This aids in the almost instantaneous verification of National IDs that contain numbers, addresses, names, and various other parameters.

4. Electronic Signature

Users can quickly confirm important contracts and other documents on their mobile phones at any time and from any location with the help of an electronic signature. It also helps banks in lessening their burdensome paperwork.

E-signature allows for the secure storage of a portion of documents on the cloud, making it much simpler for banks and their clients to retrieve and manage these documents. Less physical records will need to be maintained by Bank staff, allowing them to concentrate more on their primary duties, which include better serving and supporting customers.

Conclusion

Understanding how eKYC verification in banks works can help banks apply this solution more effectively. Together, they assist banks in developing a secure, fast, and user-friendly eKYC process.

Contact SmartOSC Fintech for more information on this technology solution and other suitable options for your company.