With online banking and financial transactions making up a large and rapidly growing share of the total, businesses and regulators have recognized the need for a high level of trust with their customers, especially new ones, through mobile biometrics.
The issues of knowing your customer online are explored in depth by two new eBooks from Jumio.
“The ABCs of eKYC” and “How eKYC Streamlines Digital Banking: An Asia-Pacific Perspective” were driven in part by the need for a better overall understanding of KYC requirements, which seem “still a bit unclear” based on fines imposed, said Jumio, vice president of global marketing, Dean Nicolls Biometric update in an email interview.
“Financial institutions have been fined $ 26 billion for KYC compliance and anti-money laundering (AML) breaches over the past decade and prevailing inefficiencies are to blame,” he explains.
“KYC has become more and more complex. The idea of asking banks to verify that customers are who they say they are, to confirm that they are not on any blacklist, and to assess their risk factors is remarkably simple. But the guidelines are not overly prescriptive, so banks and other financial institutions have taken a variety of approaches to compliance, some quite complex. “
Jumio has developed a flowchart, which can be found in eBooks, to outline the key steps for financial institutions, and Nicolls notes that there are many ways to perform KYC and AML checks, and meeting the challenge often requires some knowledge. multi-supplier approach.
“The ABCs of eKYC” is a practical guide for businesses that need to implement KYC for online transactions, covering the importance of getting it right, the commonalities and differences between KYC and eKYC, and to whom eKYC regulations apply. The eBook then explains the challenges of meeting these regulatory requirements and how biometric technology is recommended by consulting firms like Gartner to help organizations meet them.
The importance of accurately verifying the identity of the client, performing due diligence checks at the appropriate level of detail among the three levels of detail and performing ongoing monitoring is discussed in detail. Finally, Jumio provides a nine-point breakdown of what to look for in an eKYC identity verification solution.
Although it is not mandatory for identity verification providers to comply with PCI DSS, Jumio considers the protection of personal information with secure storage and encryption of data in accordance with PCI standards appropriate to the value of data they process, explains Nicolls. The company regularly performs security audits, vulnerability scans, and penetration testing to meet best practices and standards requirements, and works with its customers to ensure they are GDPR and CCPA compliant. . Business customers also have full control over how long their users’ data is stored.
“How eKYC Streamlines Digital Banking Services: An Asia-Pacific Perspective” provides insight into the advanced digital and financial banking environment in the APAC region, as well as the increase in account fraud activity and other challenges that have accompanied the impressive growth of the sector. The success factors and customer acquisition challenges, as well as how to fight fraud without negatively affecting conversion rates are analyzed.
This eBook also explains the false acceptance and false rejection rates (FAR and FRR) and offers eight tips to streamline the onboarding process, as well as the role of biometric authentication in eKYC. The full costs of integrating customers into the region are examined and emerging threats such as deepfakes are put into context. A breakdown of the features offered by the vendors in the space outlines more than a dozen different areas to consider when choosing among them.
Nicolls characterizes the APAC fintech market as a little more advanced but also very diverse, and cites statistics from Deloitte showing that fintech adoption quadrupled from 2015 to 2019 to reach 64%. The corresponding increase in fraud opportunities introduced by transactions in the new channels is being handled in different ways, by a mix of global banks, new digital-only and traditional banks.
“What’s unique about APAC is the number of banks looking to solve the eKYC problem,” observes Nicolls. “Because labor is relatively cheap, we’ve seen examples where banks are trying to tinker with a variety of technologies like OCR, facial recognition, etc. to create their own online identity verification solution. Unfortunately, these do-it-yourself solutions do not harness the power of AI and ML to perform the necessary fraud checks and often take hours (often due to lengthy manual reviews), which ultimately translates into high rates of loss. higher dropouts and increased customer frustration. Banks in the United States, Canada, and EMEA are more likely to adopt standard identity verification solutions with more integrated functionality.
Ultimately, the company is confident in its ability to meet corporate identity requirements in all of the above markets, said Nicolls, highlighting the fully integrated KYC and AML solution of the company that operates the dynamic real-time ComplyAdvantage database of people and businesses. that present a risk of financial crime.
“The partnership will provide significant benefits to Jumio clients, giving them access to a proprietary global database of structured risk profiles covering enhanced sanctions, regulatory and enforcement watchlists, Politically Exposed Persons (PEP) and unfavorable media, ”explains Nicolls.
Integration automatically flags new customers online during onboarding or initial registration if they are listed in one of the databases. He also cites Jumio’s unique, automated solution and conversion rates that he believes are the best in the industry as key differentiators.
As companies in financial services and other industries increasingly rely on eKYC processes to meet regulatory transaction requirements, understanding biometric authentication and identity verification processes becomes even more important. great in the APAC region and globally.
Jumio’s biometric authentication technology was recently awarded a Business Intelligence Group Innovation Award 2020 for account taking and fraud prevention.
APAC | bank | biometric authentication | biometrics | digital identity | financial services | identity verification | Jumio | KYC