A Comparison of Traditional and Online Customer Identification Process
Businesses have missed out on nearly 40% of potential due to the intricate, complicated and time-consuming traditional customer onboarding process. Many banks and financial institutions recognize the urgency of building a quick, convenient and seamless onboarding process. The electronic Know Your Customer (eKYC) was born, becoming the optimal solution for many businesses.
What is eKYC?
KYC (Know Your Customer) is a legally required customer identification process for many businesses. Especially organizations with high customer information security such as Finance - Stocks, Banking ... The traditional customer identification process has many levels, many types of documents that need to be verified, from simple to complex. This may not work correctly, depending on the risk of the task. The traditional customer identification process presents many limitations, forcing businesses to look for new alternatives.
eKYC (electronic Know Your Customer) is a remote and paperless process helping verify a customer’s identity. Thanks to advanced technologies such as AI (Artificial Intelligence), Biometric, customers can be identified online without face-to-face meetings. The processing system will collate and verify that the account creator matches the person in the identification document.
Limitations of the traditional customer identification process
Long waiting time: It usually takes 30 minutes - 1 hour at branches and 2-3 days to verify the account for account opening and the traditional customer identification process. Moreover, this process must be done during office hours (from 8 am - 5 pm) on weekdays. This brings a lot of inconvenience to the majority of employees who can not arrange to go directly to the branch.
Difficult to detect frauds: Currently, many frauds appear and the falsification of documents is sophisticated. It is not easy to distinguish manually between real and fake documents, putting high pressure on tellers when they have little expertise in fraud detection.
Complex procedure for dealing with documents: To complete a process, customers need to fill in many types of documents with a lot of information to be rewritten many times. Besides, collecting signatures from documents is time-consuming and is a major obstacle in the traditional onboarding process.
Non-automated process: The traditional onboarding process requires 100% of steps are manual, none of which are automated, although this is a basic process that takes place frequently. Banking - financial institutions agree that the complicated and time-consuming onboarding process makes many customers have negative experiences, and it is a big weakness to improve if they want to be competitive in the market.
Advantages of eKYC – electronic Know Your Customer
In Vietnam, FPT Technology Institute provides FPT.AI eKYC – electronic Know Your Customer solution, overcoming most weaknesses of the traditional process. FPT.AI eKYC provides a quick experience to optimize new account conversions while protecting businesses from increasingly sophisticated fraud tactics.
Fast, seamless process
FPT.AI eKYC only takes 0.7 - 1.2 seconds to calculate and return the results, and 10 - 30 seconds in total to complete the process. The process can be done 24/7 anywhere. Customers do not need to go to branches but only need the Internet and electronics (phones, computers). According to statistics, the eKYC process can reduce customer onboarding time by up to 90%, providing a seamless, positive experience for customer service, and saving costs for businesses.
Highly precise algorithm
FPT.AI eKYC uses a biometric-based customer identification method to prevent fraud and account hijacking. This modern solution is much more efficient than the traditional ones (such as knowledge-based authentication, credit bureau searching or two-factor authentication based on text messages).
The FPT.AI eKYC process determines the match rate between people and their photos in identification documents with an accuracy of 95.4%. The system analyses information and collates pixels, resulting in the match rate of the images on documents with real people in 4 levels:
- Over 95%: The match rate is assessed at an absolute level
- From 80-90%: High match rate, accepted
- From 60-80%: Average match rate, need reevaluation from human
- Under 60%: Low match rate, cannot compare real people with photos
Automatically digitize customer information
FPT.AI eKYC has Optical Character Recognition (OCR) technology, which helps extract and digitize documents automatically in real-time. The weaknesses of manual input are 100% automated thanks to OCR. Tellers will be freed from the complex manual input, customers spend less time to fill information, and businesses eliminate the risk of data input errors.
With OCR, users only need to take photos of Identity Documents (ID Card, Passport, Driver's License). All required types of information will be automatically scanned and uploaded. Users or tellers do not need to manually enter the registration information multiple times. It takes from 0.7 to 1.2 seconds to read and download data with high accuracy. According to statistics, the FPT.AI eKYC solution can help businesses reduce up to 25% of manual data entry errors.
Positive customer experience
FPT.AI eKYC not only has a strong technology core but also has the potential in UI (User Interface) and UX (User Experience). FPT.AI eKYC application, developed by leading UI / UX experts, is designed with a minimalistic process with visual instructions, and easy to use even for those who are not familiar with technology.
In some cases, minor errors in the registration process (Blurred, flare photos of documents, unknown national emblem, unclear selfie) may make users being considered "Unable to collate" and rejected in the identification process.
FPT.AI eKYC completely overcomes this weakness since it can identify and tell the reason why users are denied identification in real-time, helping them to quickly correct and complete the process. This helps businesses reduce the rate of new users abandoning the process, and customers can have a faster, more seamless experience.
The biggest challenge of financial and banking institutions is to create a friendly, fast, seamless identification process, reduce obstacles while still being powerful enough to prevent fraud and account hijacking. The combination of the traditional identification process and the eKYC process will help customers have more options in account opening and help companies protect business process while increase customer conversion rates.