8 Reasons You Should Switch to Biometrics Authentication for Digital Onboarding

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8 Reasons You Should Switch to Biometrics
Authentication for Digital Onboarding
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Why Should You Switch to Digital Onboarding
Powered by Biometrics Solution?

• Customer Convenience
• Reduced Turnaround Time
• Improved Compliance and Security
• Incredible Cost Savings
• Increased Customer Acquisition
• Room for Innovation
• Supports Digital Workplace
• Growth of Formal Economy

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Know-your-customer (KYC)
Many industries leverage AI-powered smart
biometrics solutions to counteract security
threats and meet updated know-your-customer (KYC)
standards during client onboarding. Advanced
biometric authentication provides an additional
layer of fraud prevention by digitizing the
processes for e-KYC. Digital onboarding based on
e-KYC is the most reliable, secure, and faster
way of authenticating identities, which is also
resistant to counterfeiting and spoofing. A
recent World Bank report cites that moving to
e-KYC reduces the average cost of customer
verification from 23 to 0.50, and it takes no
time compared to five to seven days when done
manually.
Besides its cost-effectiveness, digital KYC
solutions are vital in todays digital era, where
industries are scaling up their online
capabilities, including financial services,
education, entertainment, restaurants, and
healthcare. Lets understand the e-KYC process
for digital customer onboarding and how biometric
authentication can transform the overall
experience.
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Understanding e-KYC Process for Digital Onboarding
The e-KYC process is the first step in the
digital customer onboarding and identity
lifecycle, and it consists of three main
components

• Document Verification or ID Capture
• Biometric Authentication
• Risk Management and ID Affirmation

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Document Verification or ID Capture
Document verification requires secure and
accurate data capture from a government-issued
trusted document. Businesses can use AI-powered
OCR (Optical Character Recognition) technology to
auto-capture the data seamlessly. This e-KYC
component automatically identifies the type of
document, edition, issuing country, and extracts
all required fields. It also extracts the
portrait image and converts it into a proprietary
biometric template for biometric authentication.
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Biometric Authentication

• Customers must prove their authenticity by being
  physically present to complete the digital
  onboarding process. There are three ways digital
  KYC solutions can accomplish this process through
  biometric authentication
• Fingerprint recognition It requires a
  fingerprint sensor designed to pick up on
  fingerprint patterns and link them to an
  individual.
• Iris Recognition Iris scanners identify unique
  patterns in an individuals iris to verify
  identity.
• Facial recognition It uses a 2D or 3D depth
  camera to identify facial vectors and matches
  them to individuals.

However, only select expensive cameras are
designed to perform iris scan that is fast and
highly accurate. Dirt, oil, and other hygiene
concerns may compromise the efficacy and
integrity of fingerprint sensors. Facial
recognition can be considered a superior
biometric method because it is affordable, fast,
flexible, and accurate. Multi-factor
authentication based on facial recognition
requires the user to take a selfie which then
compares to the cross-verified and genuine image
extracted from the document. Besides, this
biometric method enables active and passive
liveness detection technology based on deep
neural networks to detect and prevent digital and
remote ID verification frauds.
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Risk Management and ID Affirmation
The identity affirmation process uses layers of
intelligence like device intelligence, behavioral
biometrics, and trust consortium, depending on
the risk appetite. These techniques analyze the
user and environment activities to build a
dynamic profile for each event that can be fed to
a risk engine to validate customers identities
and interactions. Financial institutions can
implement Anti-money Laundering and Countering
the Financing of Terrorism regulations to the ID
affirmation process to mitigate the risk of
identity theft during and after the digital
onboarding process.
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Reasons why to switch to biometrics authentication
Customer Convenience
Digital onboarding allows customers to enroll in
new services without having to leave the comfort
of their homes to get their KYC information
authenticated. As the e-KYC process is entirely
digitized and automated, it appeals to those who
want their authentication done remotely.
Customers can choose any mobile device to
complete their e-KYC process, which only requires
filling out a form and a few clicks.
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Reduced Turnaround Time
Governments and central banks encourage using
AI-powered facial matching software for V-CIP
(Video-Customer Identification Process). The
automated digital KYC solution allchows more data
to be captured quickly from minimal input. Such a
frictionless e-KYC process reduces the turnaround
time for customer onboarding, which is hugely
beneficial for businesses with large customer
bases.
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Improved Compliance and Security
One of the essential benefits of the e-KYC
process is enhanced compliance and security
during customer onboarding. The digital identity
verification mechanisms comply with stringent and
evolving regulations such as the 6th AML
directive and Payment Services Directive. Cloud
solutions also provide access to risk management
services vital in the onboarding process to
reduce application fraud.
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Incredible Cost Savings
The biometrics solution-based, digitized
onboarding process significantly reduces the cost
of paper documents, printing, and other expenses
associated with traditional onboarding. Officials
or customers are no longer required to travel to
various locations to perform in-person
verification of KYC documents. Smart biometrics
expedites the e-KYC process and eliminates the
need for a special KYC analyst, freeing up
resources for more critical business activities.
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Increased Customer Acquisition
Organizations can reach a broader customer base
through digital onboarding, including those who
may have yet to enroll in their services using
traditional onboarding. The convenient and smooth
process attracts people from the young
generation. The seamless customer experience also
increases customer satisfaction and loyalty,
retaining more customers.
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Room for Innovation
The entirely digitized nature of the e-KYC
process leaves much room for innovation and
improvement using some emerging technology to
strengthen its integrity. Machine learning can be
used on V-CIP for lower false positives, saving
the time spent screening for false positives.
Businesses can also implement liveness detection
technology to detect and prevent increasing
presentation attacks.
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Supports Digital Workplace
The manual onboarding process can be clumsy and
time-consuming. Gathering identity information
and cross-verification can be laborious for
businesses and customers alike. The advanced
identity verification process allows
organizations from various sectors to digitally
accept ID documents and KYC information. Whether
it is customer onboarding, bank account opening,
SIM card registration, driver registration, or
e-VISA issuance, e-KYC declines the need for
paperwork and physical presence.
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Growth of Formal Economy
Adopting e-KYC will mark growth in the number of
users in the formal economy. The digital identity
lifecycle can be used to provide formal and
government services to more people, especially
those from rural settings. The innovations in the
e-KYC process support vernacular languages and
text-to-speech mechanisms to encourage people
from underbanked regions to subscribe to safe
microfinance services.
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Modernize Customer Onboarding with Smart
Biometric-based e-KYC
Electronic KYC powered by innovative biometric
solutions can empower organizations to secure
their assets and information more effectively. It
is also more compliant than manual customer
identity verification and genuine user
confirmation during the entire customer
lifecycle. Fingerprint authentication, AI-powered
facial recognition algorithm, document
verification, and passive liveness detection can
contribute significantly to automating,
optimizing, and customizing the e-KYC process to
minimize the risk of identity fraud. With many
other benefits, such as convenience, speed, and
increased customer acquisition, it is only wise
to integrate advanced biometric authentication
into an e-KYC process for digital onboarding
purposes. Our Smart Biometrics solution helps
enterprises, governments, and API partners verify
users in real-time using robust features,
including customizable workflows, API-based
framework, data accuracy, and document management.
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Thank You