KYC verification is something that enables businesses to collect and verify user information before any service is provided or product is sold to them. KYC simply stands for Know Your Customer and it meets various needs of businesses especially those operating in cyberspace. Prevention from online frauds is one of the biggest benefits of KYC verifications, assisting companies to save millions in cash backs and revenue. But there is more to identity verification and KYC practices than meets the eyes.
KYC verifications – A regulatory requirement
Very few businesses actually know this but most of the governments and regulators require enterprises to properly perform know your client verifications before any service is rendered. Regulatory guidelines vary from country to country and in some cases even within the same country Know your customer laws can differ drastically from one another. But the main point to consider is that there is an official need to perform know your customer and it is in your best interest to perform these KYC before any of your run-in with laws for non-compliance.
Cost of KYC verifications
How KYC services are integrated into the business operations of a company is entirely dependent on that organization and it basically relies on the discretion of a company’s higher management. There are online solutions available to perform KYC identity verification and some KYC software are also being used for on-the-spot identity verification services. But it must be astonishing for some to know that the cost of KYC verifications performed by an online SaaS product is not only lower but the constantly upgraded features can also be availed without spending any extra money.
Now there are some “world-renowned” solutions available for KYC services that take several minutes, if not hours, to complete a single verification. Although the number of credentials required for a KYC verification might also have to do a lot with the time spent on each verification it is considered normal among corporate sector if an identity verification system is NOT supplying them with real-time results. But it would certainly amaze you to know that there are actually KYC verification solutions available that can collect required credentials in 30-60 seconds and can give real-time verification results. This surely can have positive implications for business looking to bring an onboard greater number of customers in the lesser amount of time.
Know your customer verification offset financial risks with greater success as compared to any other business practice. They not only create transparency in the provision of services or product sales but Know your client services also enable businesses to reduce the risk of encountering a person who is using fake documents or false credentials to conduct business with a particular company. Surely, a feature-rich KYC software is the best example of the phrase ” Precaution is better than cure”.
Rather than losing revenue because of online scammers, online businesses and service providers can utilize the services of a reliable KYC company to prevent them falling a prey to financial criminals with real-time KYC verifications at a much lower price.