Four Industries That Need KYC Solution

By Anna Marks

Shufti Pro Ltd

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Abstract

In the age of internet and digital media, businesses need to implement KYC solutions to prevent fraud and non-compliance penalties. Collecting and verifying unique identity information from customers is a proactive method to fight online frauds. Identity verifications are performed in real-time and produce exceptional outcomes. Some industries that can benefit from KYC compliance processes include

 

E-commerce Industry

 

E-commerce businesses can use KYC services to reduce cashback requests. Customers are asked to show their credit cards for verification to prevent payment fraud. Another main reason to use identity verification service is user satisfaction. AI-based KYC uses machine learning and complex algorithms for customer verification within seconds. This could be possible if the eCommerce industry implements these modern-day technologies.

 

Moreover, Business owners who are running online shopping websites need to follow the KYC and AML rules and regulations of regulatory authorities. Certainly, KYC compliance SaaS products offered by AI-based companies protect e-commerce businesses from non-compliance fines.

 

Gaming Industry

 

Gaming companies are also facing a huge challenge of KYC/AML compliance due to globally evolving KYC and AML regimes. They are also required to implement some efficient identity verification procedures to prevent their gaming platforms from fraud. In this fast-paced gaming industry, gaming companies cannot afford to spend a significant amount of time in verifying their users. This will also increase the risk of losing a number of customers. 

 

Gaming businesses also need to verify the age of their customers. Since a lot of gaming companies are offering age-restricted online gaming services. Thus, it’s the core responsibility of online gaming platforms to implement KYC checks to verify the age of their players for preventing underage addiction. 

 

Education Industry

 

The education industry can also benefit from KYC checks. Several universities and colleges are offering online courses. Students need to pay hefty course fees before getting registered. Potential fraudsters and scammers can steal the identity of students to illegally access their accounts. As a result, the online education sector faces a number of cashback requests and potential loss. Here comes the need of KYC software to prevent identity theft. 

 

Additionally, online examinations are also becoming more common. In order to deter any sort of fraud and cheating, online KYC can prove to be valuable. This robust system uses the webcam or a smartphone camera of the candidate to verify the identity before starting the examination. Real-time face recognition and ID-card verification help to mitigate cheating and fraud in the education sector. 

 

Financial industry

 

Banks and financial institutions also need to comply with KYC/AML regulations. KYC solutions help banks to prevent fraud through in-depth screening of their clients. Financial businesses can perform efficient verification through KYC that helps in onboarding and retaining customers. 

 

The financial industry is evolving as financial organizations are providing technological solutions for their typical operations. Online banking, online insurance, and mortgage are a few advancements that bring in profits as well as risk to the financial industry. So, KYC verification is becoming inevitable for the financial sector.

In order to avoid non-compliance penalties, businesses should implement KYC solutions. By integrating identity verification, businesses can protect themselves against fraud, increase efficiencies, and establish a positive brand reputation. 

 

Acknowledgments

Shufti Pro is an AI-powered SaaS product that helps online businesses in identity theft protection, online fraud prevention, and payment scams security. 

References

https://shuftipro.com
https://jumio.com

Cite this work

Researchers should cite this work as follows:

  • Anna Marks (2019), "Four Industries That Need KYC Solution," https://stemedhub.org/resources/4304.

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