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Electronic Know Your Customer (eKYC)
Updated on:
March 28, 2024

Electronic Know Your Customer (eKYC)

eKYC, or electronic Know Your Customer, is a digital process of identity verification that enables financial institutions to remotely authenticate the identity of customers or clients and conduct anti-money laundering (AML) checks.

  • eKYC refers to the use of digital methods to verify a customer's identity.
  • It is a convenient and efficient way to perform the KYC process.
  • eKYC often includes electronic document verification, biometric authentication, and other digital technologies.

About FullCircl

FullCircl is a Customer Lifecycle Intelligence (CLI) platform that helps B2B companies in financially regulated industries do better business, faster. Its solutions allow front and middle office teams to win the right customers, accelerate onboarding and keep them for life.

FullCircl has merged with ID&V platform provider W2 Global Data to provide regulated entities with the next generation of regulatory compliance.

Know Your Customer (KYC), is a critical process for financial institutions that helps them comply with Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) regulations. KYC aims to verify the identity of a customer, assess their financial risk, and ensure they are not involved in any fraudulent activities.

KYB, or Know Your Business, is a similar process that applies to businesses rather than individual customers. It involves verifying the legal identity of a company, its owners, and its beneficial owners.

eKYC is a digital alternative to traditional KYC and KYB processes that allows financial institutions to verify a customer's identity remotely/automatically. It involves using digital technologies such as biometrics, facial recognition, and digital document verification to authenticate the identity of a customer. eKYC has numerous benefits over traditional KYC methods, including increased efficiency, cost-effectiveness, and convenience for customers.

The eKYC process is often faster and more streamlined than traditional KYC processes, allowing financial institutions to onboard customers more quickly. It is also more secure and less prone to errors since it uses advanced digital technologies to verify a customer's identity.

Financial institutions can integrate eKYC into their existing processes to enhance their customer experience and streamline compliance. However, it is important to note that eKYC does not replace the need for ongoing monitoring and customer due diligence. Therefore, financial institutions must incorporate eKYC into their overall KYC and AML/CFT compliance programs.

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