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The ready-to-use KYC customer onboarding process

Published on
March 28, 2024
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Upgrading to a digitised and automated customer onboarding process has its fair share of challenges for a company as it is time-consuming, resource-intensive, and expensive. To facilitate KYC compliance and lower the threshold of investment ZignSec launched a ready-to-use customer registration package easily implemented via a webhook.

Know your customer

KYC is a fundamental concept in the ongoing battle against money laundering and terrorist financing. The term is an abbreviation for 'Know Your Customer' and refers to the process of knowing the identity of customers in order to counter criminal activities. For companies operating in the financial sector, there are special regulative requirements for customer knowledge. For example, banks and audit firms must both establish the identity of their customers, check where their money comes from and continuously monitor their transactional behaviour. KYC (Know your customer) also caters to the vested interest of safeguarding company core values and protecting its customers. Several online service providers are operating in industries without regulatory requirements, and self-regulatory industry standards, that also takes a risk-based approach (RBA) by implementing an automated KYC onboarding process or a needs-based version of such.

Human holds iphone

Online customers expect a real-time experience

The most crucial touchpoint for protecting the business from fraud and for establishing a stellar customer experience is at the starting point of the relationship, during the customer onboarding or registration process. Businesses need to ensure that their customers are who they claim to be. Successfully verifying customer identities using their ID documents or any other method prevent fraudsters from entering and misusing systems, this is especially pivotal for regulated entities in e.g., the iGaming industry, the financial and crypto sector, and the insurance industry. To deliver an exceptional client experience, the onboarding process needs to be as seamless and simple as possible. Online customers expect a real-time experience, whether it is opening a gaming account, increasing the coverage in an insurance policy, or utilizing financial services. All regulated entities with online services are now able to fulfil this real-time expectation with a digitized and automated KYC compliance process for swift and safe customer onboarding, and this process can be up and running in no time.

A "plug and play" KYC onboarding process

ZignSec ‘ready-to-use customer registration’ mirrors the customary features and flows that's widely used by regulated entities in their customer onboarding process. In other words, it's an off-the-shelf KYC compliance workflow and this readymade onboarding package is made available via a webhook, no integration is required. With this "plug and play" KYC onboarding process the individual's information is firstly captured in a web form. By scanning a QR code on the website of the service the potential customer receives instructions and starts the onboarding process. Utilizing the smartphone, the client submits a photo of their valid ID document along with a Liveness Check, which in practice means a smartphone video recording of head movements according to instruction.

The automated online identity verification process takes place in real-time in the background and checks that the ID document is valid, compares the ID photo with the real-time selfie/video, performs forgery checks with advanced OCR reading, matches the information from the document against the consumer input data and runs Liveness Check to verify that the features and attributes being presented are those of a living person and not a copy or imitation of those features. Lastly PEP & Sanction checks are done to find out if the customer is a Politically Exposed Person (PEP) and to make sure that the person in question is not under sanctions. All these checks are friction-free and always in compliance with the constantly evolving AML (Anti Money Laundering) regulations and all data is dispatched to the online service provider in seconds via webhook.

The ready-to-use workflow package enabling digitised and automated KYC compliant customer onboarding in real-time is a well-proven, reasonably priced, and swiftly deployable enabler that increases the customer acceptance rates while simultaneously reducing fraud.

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