#Next-Generation Verification: The Future of KYC Lies in Edge Computing

Discover why the integration of the latest technology is important and what happens if the company is not following the Know Your Customer (KYC) rules and regulations.

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In recent years of technological advancement, success is impossible without the integration of digital tools. Especially after COVID-19, enterprises that are not shifted to the online mode are not seen anymore, therefore it is crucial to adapt to the changing trend of the market. But this progress has also some dark side, as it has paved the way for hackers. The scammers find it easier to steal the user data, than in-person robbery. Therefore businesses have to use the KYC process in their daily operations.

Know Your Customer- The Cutting Edge Technology 

The companies onboard the users after proper verification of their profile, they ensure that the same individual is trying to log in to the account. The businesses must check the identity of the customer, otherwise, there is the probability that they have boarded an illegal person. Then their brand image is affected, other than this they also have to bear its cost. Therefore the companies need to collaborate with only valid users. According to research in 2022, almost 64% of organizations noticed that the cases of cybercrimes are now reduced compared to last year.

The verification of the clients through technology is a digital process, this can be done from anywhere. It saves the time and traveling expenses of the users, as they do not have to go to the office. Other than the fact that people living in distant areas do not have to come to the office, the biometric system has solved this issue.

The advanced tools increase the surveillance of the companies, they mitigate data breaches, fraudulent activities and money laundering. Sometimes hackers steal the identity of the client and get access to their account. The respective individuals do not even know that their system is in use by someone else. Therefore it is mandatory to verify the identity of the customers while onboarding them.

This is not just about the security, the client’s experience is also enhanced. It wins the trust of the user, as it provides them seamless services.

Working of the KYC (Know Your Customer) 

The clients experience multiple steps, for their KYC purposes. In the first step, they have to face the camera, then the system compares their physical and physiological traits. The unique features of the client are matched, such as the eyes, fingers, face and sound. Every person has different thumbprints, therefore these templates are used to confirm the identity of the user. In addition to this, the system also checks the documents of the client. The following steps are involved to verify the legal papers of the customers.

1. Document Collection

In the initial step, the system asks the user to submit their legal papers. The system performs the preprocessing of the papers and ensures that the customer has given all the required data. If any information is missing or irrelevant then the system asks them to reload it. Any kind of photoshopped or fake image is rejected on the spot. The scanner prepares the documents for the further steps.

2. Data Extraction

The system extracts all the useful or required information, the Optical Character Recognition (OCR) is used for this purpose. The papers that are not required are rejected or any information which is fake or stolen is also refused.

3. Document Validation

The client’s identity is validated by comparing the information given by the user and the data saved in the database. Sometimes the system also compares it to the templates of the government.

4. Data Authentication

In the last step, the results are shown, if both the records are the same then it means that the client is safe to collaborate with. A red flag is shown for the unauthentic customers, this means the user still needs to give the valid papers. For such people manual verification is also involved, the clients have to submit some further documents.

Benefits of the Cloud-Based Technology for the Companies

• The rising fraudulent activities have increased the importance of biometric solutions. The companies that are not integrating this technology have to face many complications. The companies lose their users due to this because their information is not in safe hands. The customer does not choose the company in which their data is not secured. In the banks, the users have to share their personal information, and the clients are usually hesitant while sharing such details. Therefore the company must build the trust of the consumer so that they can easily share their record. 
• The brand image is also improved through these tools, as the users prefer a company that is safeguarded against fraudulent activity. In the era of social media, customers select the company after reading their reviews on social media, so if the existing clients of the company are satisfied then they will give good comments about the company. Therefore the company has to provide seamless services to their existing clients to gain more users.
• Indirect marketing is also promoted through trending technology because positive word of mouth attracts more users. Same as if the company is not using the latest tools then their loyal clients even switch the company. Privacy is the core value of the individuals, the users feel safe with the company that secures them against fraudulent activities.

How Pioneering Technology is Better than Physical Authentication?

• The manual validation techniques are very time-consuming and hectic, the operators are needed to perform the whole process. The employees collect the data of the customer, analyze it, and then validate it, this step is done in weeks. The clients usually get fed up with it, and they prefer such companies. Other than this these techniques are not safe or reliable, because they are done by humans. These registrations are prone to error, humans sometimes perform the wrong entry.
• The automation machinery is very user-friendly, it saves the assets of the company. The organizations that are using these KYC solutions their revenue is multiplied. The artificial intelligence tools are reliable, they properly check the profile of the customer and then issue them access. In addition to this, they safeguard them against data breaches, and the client’s time is also saved through it.

Use Case of the KYC-Edge Cutting Across Banking Sector 

The financial sector holds the most sensitive data, therefore it is mandatory for them to integrate trending technology. The government imposed fines on the companies that did not follow these guidelines. The banks open the accounts of the customers through the latest tools, verify them and continuously monitor them. They measure the risk of the client and then they are segregated according to it. 

Summing Up

KYC, a cutting-edge technology, is necessary for the success of the company, therefore businesses must integrate them. They onboard the client, verify their profile, and screen their activity. The company can build the trust of the user by safeguarding their data. The screening feature of the biometric solution aids the company in building strong relationships with its users because it gives updated data to the organization. Therefore companies must integrate machine learning tools into their daily operations.

by Sophia Parker

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