The global fintech boom has encouraged countries worldwide to establish new regulations surrounding Know Your Customer (KYC) procedures. KYC is a vital process that validates customer identities and evaluates risks, empowering businesses to truly understand and analyze their clients in a meaningful way.
In today’s fast-paced digital world, customers love the convenience of handling their financial transactions right from their smartphones. So, imagine if your customers have to go through the hassle of visiting your office just for verification purposes. It’s no surprise that they’d start searching for easier alternatives. That’s where eKYC comes in. If you’re not familiar with eKYC, its amazing benefits, and how it can take customer growth and user experience to the next level, keep reading for an eye-opening journey.
E-KYC, also known as Enhanced Due Diligence (EDD) under POJK No. 23-POJK.01-2019, represents a comprehensive and detailed KYC process designed to detect potential risks that conventional KYC methods may overlook. E-KYC primarily focuses on acquiring or registering new users, replacing the physical KYC process with a seamless digital onboarding experience.
In Indonesia, the implementation of E-KYC aligns with various regulations, including Law No. 8 of 2010, which aims to combat money laundering. Additionally, Bank Indonesia Regulation No.3/10/PBI/2001 serves as an implementation of the know-your-customer principle, while Financial Services Authority Regulation No.12/POJK.01/2017 functions as an anti-money laundering and terrorism financing prevention program. By harnessing E-KYC technology, the customer identification process becomes highly effective, efficient, and user-friendly, ensuring accuracy and precision while minimizing human error.
Likewise, the E-KYC process offers lower costs and greater speed compared to traditional methods. This addresses prevalent challenges in the financial sector, such as money laundering cases, high operational costs, sluggish processes, and unsatisfactory customer experiences.
The Advantages of E-KYC
- Real-Time Verification: True to its name, eKYC operates entirely online, enabling the real-time transfer of KYC data without manual intervention. While conventional KYC processes may take days or even weeks to complete, eKYC can swiftly verify customers within minutes.
- Accessing New Markets: Banks face mounting pressure to increase acquisition rates through digital onboarding processes. This approach aims to create affinity and attract loyal customers to their institutions. According to The Digital Banking Report (2017), 43% of individuals express dissatisfaction with the account opening process, indicating their propensity to switch banks due to repetitive data entry, the absence of real-time verification, and low accuracy. By embracing eKYC, banks can tap into new markets, enhance customer satisfaction, and foster loyalty by delivering efficient and accurate onboarding experiences.
- Enhancing Customer Experience: In the banking sector, the onboarding process plays a critical role in shaping customers’ opinions and impressions of their banks. A survey by PwC (2020) reveals that 59% of consumers prefer digital onboarding when opening a bank account, signaling the rising demand for digital channels and underscoring the importance of eKYC solutions in meeting customer expectations. Additionally, McKinsey & Company (2020) reports that digital onboarding can reduce account opening time by up to 90%, significantly improving customer experiences and enabling banks to acquire new customers swiftly and efficiently. Implementing eKYC solutions not only enhances the customer experience by providing a faster and more convenient onboarding process but also streamlines operations, reduces costs, and positions banks competitively in the market.
- Accelerating Access and Enhancing Flexibility: The beginning of the pandemic has caused a monumental change in customer behavior, as individuals now prioritize expeditious and easily accessible processes over conventional methods.
In summary, E-KYC holds tremendous potential for your company to increase profitability by tapping into previously inaccessible markets, fortifying the security of user and customer acquisition processes through accurate identity verification, and elevating the overall customer experience with an online, real-time registration process that can be accessed anytime and anywhere.
Embrace more efficient and secure performance with ASLI RI’s E-KYC.
To unleash these benefits, it’s the perfect time to collaborate with ASLI RI, the pioneer and industry leader in E-KYC solutions. Our cutting-edge E-KYC system, enriched with Biometric Verification and powered by state-of-the-art artificial intelligence technology, ensures advanced and reliable performance. By joining forces with us, you’ll gain a competitive edge and elevate your customer verification process to new heights.
Rest assured, ASLI RI is a registered and supervised provider by the Indonesian Financial Services Authority (OJK), ensuring compliance, security, and legality. Discover more about our services and how they can transform your business by visiting us at www.asliri.id.
Last modified: May 24, 2023