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Understanding e-KYC System: Benefits and Advantages in the Digital Era

In the digital era, one of the applications of big data in everyday life that will always be implemented in the future is the Electronic Know Your Customer (e-KYC) system. This system enables electronic or digital customer identification without physical contact. The e-KYC or enhanced due diligence (EDD) process is more comprehensive than the standard KYC process, enabling the detection of potential risks that cannot be identified through regular KYC processes. In Indonesia, the implementation of e-KYC is based on various regulations to prevent money laundering and terrorism financing.

Expert Perspectives of e-KYC

Dr. Manahan Parlindungan Saragih Siallagan, Director of the Big Data and Business Analytics Laboratory at the Bandung Institute of Technology, explains that e-KYC technology increases the effectiveness, efficiency, and ease of customer identification with a fully digital process, reducing human error with accuracy and precision. Additionally, e-KYC is cost-effective and faster than conventional methods, helping to solve problems such as money laundering cases, high operational costs, slow processes, and unsatisfactory customer satisfaction levels.

There are two elements of e-KYC, the first of which assesses and monitors each customer, as well as verify their legal documents. The second element monitors all ongoing and future transactions. Accessing e-KYC requires accessing the provided website, uploading a photo of the national identity card, and checking the automatically filled-out form.

The Advantages and Benefits of e-KYC

The benefits of e-KYC are numerous, including increased effectiveness, efficiency, and ease of the customer identification process, as well as lower costs and faster processing times compared to traditional methods. It also reduces the risk of human error and increases accuracy and precision. However, the implementation of e-KYC also faces various challenges, such as the need for further education and regulation to familiarize customers with the new technology.

Overall, the e-KYC system has the potential to improve various aspects of the financial industry, including reducing the risk of money laundering and terrorism financing, lowering operational costs, and improving customer satisfaction. Stakeholders in the industry need to work together to address the challenges and ensure the successful implementation of e-KYC. As technology continues to evolve and shape the financial industry, e-KYC is an important step toward a more efficient, secure, and digitally-driven future.

ASLI RI Solution: e-KYC with Biometric VerificationASLI RI’s E-KYC with Biometric Verification is the next level of identity verification, requiring only the customer’s face to verify their data. With our advanced AI technology, we ensure accuracy and speedy processing, providing a seamless experience for our clients. Moreover, as the pioneer of E-KYC providers in Indonesia, we have already served more than 200 companies, helping to protect their businesses against identity fraud. Visit our website at www.asliri.id to learn more and experience the future of identity verification.

Last modified: March 28, 2023