E-KYC or electronic know your customer is a process of verifying a customer’s identity using electronic means. This can be done through various methods such as online form submission, video KYC, or biometric verification. It is essential to ensure that proper KYC procedures are followed to prevent money laundering and other financial crimes.
There are various benefits of using E-KYC for businesses. It helps to reduce costs and save time as there is no need to verify the customer’s identity physically. It also makes it easier to onboard new customers as they can submit their information online. In addition, E-KYC can help to improve customer experience as it is a quick and convenient way to verify identity.
However, there are also some risks associated with E-KYC. For instance, if customer data is not secured correctly, it could be leaked or hacked. This could lead to identity theft and other financial crimes. Therefore, businesses need to have proper security measures in place to protect customer data.
Overall, E-KYC is a convenient and efficient way to verify customer identity. However, businesses need to be aware of the risks involved and take steps to protect customer data.
Privacy is a major concern for many people when it comes to E-KYC. They are worried that their personal information could be accessed and used without their consent. To protect privacy, businesses need to have proper security measures in place to safeguard customer data. They should also make sure that customers are aware of how their data will be used and have the option to opt-out of E-KYC if they wish.
