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Fintech

eKYC- Simplifying Customer Onboarding Process

Advancements in technology, like eKYC, have greatly enhanced financial apps, making them more advanced and user-friendly. This progress has led to a range of exciting digital solutions that simplify the process of getting started with financial services.

eKYC, powered by AI, is a standout example, making identity verification easier and more efficient in the world of fintech.

Highlights

  • Using eKYC (electronic-Know Your Customer) to verify the identity of their customers electronically.
  • Simplify the customer onboarding process by making it faster and easier for customers to verify their identity.
  • Faster and easier way to open accounts with financial institutions.

Challenge

Know Your Customer, better known as KYC, is a mandatory customer onboarding process for banks and financial institutions to know about their clients’ identities, their information and verify them accordingly. 

The traditional bank account opening formalities were paper-based and often took more than one day. And being paper-based, it was very difficult to verify and validate new customers. Hence, no single individual could open a new account at the same time they have submitted all required information. 

Solution

eKYC can help to simplify the customer onboarding process by making it faster and easier for customers to verify their identity. With eKYC, customers can simply scan their passport or driver’s license with their smartphone, and their identity can be verified electronically.

NID Data Collection & Verification 

OCR: For collecting NID data we have developed an optical character recognition feature, or OCR. Our OCR can validate real NID images like smart-card NID, old NID, as well as downloaded NID from Election Commission. In this step customer provide us their NID’s front image and back image, where the OCR will read the data from those images in both English and Bangla. 

NID Data Validation: In these steps we verify OCR generated data by comparing it with Election Commission data. Bangladesh Bank already provided guideline the matching percentage to verify the NID data. 

Biometric Verification 

Face Verification: Face verification has been completed in multiple step verification. Initially we verify the liveliness of customer image. This is done through the means of Amazon Rekognition, a machine learning solution from AWS. Liveliness verification is done by customer eye blinking as well as paling customer eye in a predefined rectangular box. If liveliness check verifies, then we verify customer image with NID image data. 

Fingerprint Verification: For further assistance, fingerprint verification can provide a faster and more accurate way to validate customer identity. We directly verify the customer fingerprint with Election Commission customer fingerprint.

Security Measures 

OAuth2: We have implemented standard renowned OAuth2 protocol to secure all calls between mobile application and internal bank services.

Data Encryption: All stored sensitive data are encrypted, securing the database only for the involved users.  

Forgery Detection: If any data is forged with paper patches or using Photoshop, the eKYC security protocols will detect such forgeries. This scenario is valid when we have no Election commission API to validate. 

Face spoofing: Fraudsters can acquire photos and videos on the internet, and even model 2D or 3D face models of the authorized user to bypass security. The eKYC security measures take on both 2D and 3D photos and cross reference it among different faces, as a result only the authorized users are accepted in the system. 

Benefits

The question of asking “will an eKYC system will do us any good?” will soon be redundant sometime in the future, thanks to rapid technological advancements. And such advancements will give rise to new norms that all sorts of industries have to adopt. 

Now, eKYC has introduced the fastest customer onboarding process for banks and financial institutions. The digital nature of the eKYC has reduced to paper-based KYC system to a few simple steps. It is very easy to identity and verify customer authenticity by digitally biometric verification. Thus, creating real time customer onboarding and account opening. This helps financial organizations to increase their business greatly, as the conversion time for leads to customers has been shaven off! For customers, eKYC can make it faster and easier to open accounts with financial institutions. It can also help to reduce the risk of identity theft.

So, if you’re from a bank and financial institution, our eKYC solution is maybe the solution that you were looking for to expand your business. Or you are someone who is just interested in what eKYC brings to the table. But I hope reaching all the way here has piqued your interest in how fintech is going to evolve in the next coming years, and what do you have to do to stay on top of your (financial services) game. 

Contact us at Brain Station 23 to get the answer to your technological needs!

Services We Provide 

Brain Station 23 is focused on delivering tailored services to meet the unique needs and expectations of their clients. Here we provided Fintech Solutions to our client. 

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