Electronic Know Your Customer (eKYC)

eKYC refers to the digital verification of a customer's identity using electronic means. This process replaces traditional, paper-based methods with online channels and technologies like:

1. Document Scans: Users upload digital scans of their passports, driver's licenses, or other identity documents.

2. Facial Recognition: Advanced algorithms compare a user's selfie to the photo on their ID document for verification.

3. Data Verification: eKYC systems can verify user information by cross-checking it against trusted databases.

The Advantages of eKYC

1. Enhanced Efficiency: eKYC streamlines customer onboarding by eliminating the need for physical document submission and manual verification.

2. Improved User Experience: Faster and more convenient onboarding processes enhance customer satisfaction.

3. Reduced Costs: eKYC eliminates the need for physical documentation and manual processing, leading to cost savings.

4. Increased Security: Robust eKYC solutions can deter identity theft and fraudulent activities.

The eKYC Process

eKYC typically involves these steps:

1. User Identity Document Submission: The user uploads digital scans of their government-issued ID or other relevant documents.

    

2. Document Verification: The system verifies the authenticity and validity of the submitted documents using advanced techniques like AI-powered analysis.

    

3. Liveness Detection (Optional): Facial recognition technology ensures the user is a real person presenting, not a photograph or video recording.

    

4. Data Verification (Optional): eKYC systems can cross-check user information against trusted databases to confirm accuracy.

Using a Progressive Profiling Approach for your eKYC

A progressive profiling approach is a way businesses or a third-party verification provider can gather information efficiently, balancing security with a smooth user experience. The data can be collected through:

Active Signals:

• User-submitted information like name, address, date of birth, and government-issued ID details.

   

• Photos, such as selfies, to confirm user presence and document authenticity.

Passive Signals (Device Signals):

• IP address and location data to verify user location claims.

• Device fingerprint and browser data to identify potential anomalies.

• Analysis of whether a VPN is being used.

At SmileID we go beyond basic checks by incorporating additional passive signals to enhance security.

SmileID's eKYC solution incorporates powerful technologies, including:

1. Optical Character Recognition (OCR): Extracts text data from ID documents with high accuracy, minimizing manual data entry errors. (This paves the way for mentioning OCR as a separate solution later)

2. Liveness Detection: Smile ID's liveness detection technology guarantees a real person is behind the onboarding process. At Smile ID 87% of all biometric fraud attempts caught by us were only detected because of the active liveness component in our biometric solutions.

3. Document Verification: Our AI-powered systems analyze documents with exceptional accuracy, ensuring authenticity and validity using a global database of over 8,500 ID types.

4. Global Compliance Expertise: We stay updated on eKYC regulations around the world to ensure your compliance.

eKYC is transforming customer onboarding in the digital identity space.  By partnering with Smile ID and leveraging our secure, efficient, and compliant eKYC solutions, you can expedite onboarding processes, enhance user experience, and safeguard your business from fraud.

Looking to learn more about our eKYC solution and full compliance stack? Speak to one of our experts here.