Traditional KYC methods often rely on documents that many individuals in this demographic do not possess. This especially affects the unbanked population, who do not have a valid form of ID to access the digital ecosystem. Phone number verification offers a low-friction alternative that leverages the ubiquity of mobile phones to authenticate identities, thereby bridging the gap and bringing financial services to a broader audience.
According to the Communications Authority of Kenya, mobile penetration has surpassed 66% as of 2023, making phone number verification emerges as a pivotal tool for quick KYC onboarding. This innovative solution not only streamlines the customer onboarding process but also ensures compliance with stringent regulatory standards, making it indispensable for businesses aiming to expand their reach and enhance security.
Here, we discussed the significance of phone number verification in Kenya, exploring how it can be used to facilitate low-level KYC onboarding, improve customer experience, and ensure regulatory compliance.
What is Phone Number Verification?
Phone number verification is a process used to ensure that a given phone number is valid, active, and actually belongs to the individual claiming ownership. This is achieved by verifying the user's phone number against authority databases and matching personal information data like the name and ID number. This verification method is particularly useful in regions with high mobile phone usage, such as Kenya.
By confirming that a phone number is legitimate and belongs to the correct person, businesses can verify a user’s identity to reduce fraud, improve security, and comply with KYC regulations for quick onboarding.
Why is Phone Number Verification Important for KYC Onboarding?
Phone number verification is crucial for KYC onboarding in Kenya for several reasons:
- Regulatory Compliance: Ensuring that customer identities are verified in accordance with local and international regulations.
- Fraud Prevention: Reducing the risk of identity theft and fraud by verifying user’s identity through their phone numbers.
- Customer Convenience: Providing a seamless and efficient verification process that leverages the widespread use of mobile phones.
- Inclusivity: Facilitating the onboarding of the unbanked population who may lack traditional identification documents but have access to mobile phones.
An Overview of Phone Number Verification for KYC in Kenya
Phone number verification plays a crucial role in KYC onboarding in Kenya for several reasons. Firstly, it provides a reliable means of verifying the identity of customers, ensuring that businesses comply with regulatory requirements. This is particularly important in a country where a significant portion of the population remains unbanked. By leveraging phone number verification, businesses can onboard customers more efficiently, reducing the risk of fraud and identity theft.
Moreover, phone number verification enhances the customer experience by simplifying the onboarding process. Customers can quickly verify their identities using their phone numbers without the need for extensive documentation. This convenience is especially beneficial for the unbanked population, who may have limited access to traditional identification methods. By offering a seamless and user-friendly verification process, businesses can improve customer satisfaction and retention.
How to Perform Phone Number Verification in Kenya
Follow the steps below to verify a phone number using Smile ID’s solution:
Step 1: Collect User Details
Collect the customer's phone number and optional fields such as name, gender, and personal identity number through your onboarding form.
Step 2: Submit Information via API
Submit information to our Identity Verification API to query the government database using only the phone number.
Step 3: Get Real-time Results
Results will return a value of no match, partial match, or exact match, along with detailed data from specific fields that match.
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If a phone number is not listed or entered incorrectly, the system will return a "record not found" result. Furthermore, the service can identify if the entered phone number is invalid for the selected country, allowing for immediate adjustments and ensuring the accuracy of the information.
Verifying User's Phone Numbers for KYC Onboarding with Smile ID
Smile ID's Phone Number Verification solution is designed to be a comprehensive, low-friction service that facilitates KYC onboarding in Kenya. Covering over 47 million phone number records in Kenya, this service ensures accurate and efficient verification.
Key Features
- ID Number Matching: Ensures that the provided ID number matches the one associated with the phone number.
- Name Matching: Verifies that the first and last names match those linked to the phone number.
- Real-Time Verification: Provides instant results, allowing businesses to quickly proceed with the onboarding process.
- Error Detection: Identifies invalid phone numbers and provides feedback for corrections.
Conclusion
Phone number verification is an essential tool for KYC onboarding in Kenya, offering a secure, efficient, and inclusive method for verifying customer identities. With the widespread use of mobile phones and the need for stringent KYC compliance, this verification method is invaluable for businesses.
Smile ID's Phone Number Verification product offers businesses a low-friction way of quickly onboarding users via phone numbers. This product enhances security, improves customer experience, and ensures regulatory compliance.
Book a free demo today to learn more.
