3
min read

Biometrics for KYC is on the Rise

Published on
July 6, 2022
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Perhaps a younger version of you was marvelled at the Sci-Fi security systems on display in futuristic movies. But facial recognition to identify a person or fingerprints to validate digital payments is no longer futuristic fiction. Today it is a part of our everyday life and security, not least in terms of online identification and verification associated with KYC.

Biometric identification methods are of great importance to us as individuals as we increasingly store sensitive information on our mobile phones, tablets and computers. As more everyday services become available online the need for secure and user-friendly systems to verify our identities also increases. Convenience, improved security, and fraud reduction are some of the benefits associated with the use of biometrics. Today, most of us use it daily. We use biometric attributes as an identification method to unlock our mobile devices, control app permissions and log on to various online services where we also apply it to make payments - accordingly many individuals apply their biometric attributes for banking matters.

Too many companies are fined

KYC (Know Your Customer) is a regulatory requirement for banks and the financial industry in general. It constitutes a customer onboarding process that an institute must fulfil in accordance with KYC and AML (Anti Money Laundering) regulations.  The process includes ID document verification, face verification, document verification such as utility bills as proof of address, and biometric verification. Collecting customer information has two goals: 1) protect the financial institution by proving the customers' identity, 2) protect the customer and limiting the customers' responsibility through due diligence. In this process biometric authentication for customer verification serve as an extra layer of security for safe business. Verifying the identity of an individual correctly is critical to increasing security and reducing crimes. Biometrics is a powerful weapon against identity fraud, a crime which currently is on the rise.

The number of companies fined for not complying with the KYC rules has increased recently. In other words, it is more important than ever for companies to have strict compliance procedures and policies in place in order to avoid the huge penalty costs and not to lose customers' trust. In order to remain competitive, it is a necessity for companies operating under these regulatory requirements to streamline and secure their KYC processes with digitized and automated workflows. But implementing and securing these processes - not least when there are existing incentives to add additional layers of security such as liveness detection* - involves many, time-consuming and costly integrations with several different service providers. If only all regulatory compliance requirements and all identification needs could be fulfilled through one single integration for any business worldwide. That would surely result in more secure business and less fines and identity frauds.

Bank KYC

How can ZignSec help?

ZignSec is the global aggregator of the best local solutions for identification and regulatory compliance for businesses worldwide. Via a single integration to an all-in-one platform, businesses worldwide can solve all their local identification needs and regulatory compliance requirements with digitized and automated workflows for KYC/B- and AML-checks, age verification, fraud detection and onboarding. To include that extra layer of security with best-of-breed technology for liveness detection, biometric verification and face biometric check have never been easier or more cost-effective.

*In biometrics, Liveness Detection is a computer's ability to determine that it is interfacing with a physically present human being and not an inanimate spoof artifact or injected video/data.

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