Businesses from every sector must conduct a Know Your Customer (KYC) or Customer Due Diligence (CDD) process on new customers. Whether required by local regulations or not, KYC and CDD assure companies that the parties they are dealing with are authentic so that they can complete transactions securely. With most companies conducting business online, often with parties physically out of reach and even in other countries, completing KYC or CDD electronically is a huge boon. Using digital tools to obtain and certify a customer or potential customer’s identity, eKYC means verification and authentication in seconds or minutes instead of days or weeks.
eKYC is KYC with Digital Tools
Central to eKYC are various digital tools that can complete the KYC or CDD process quickly and effectively. These include:
While eKYC is a great advancement in authentication, there can be improvements. Currently, companies must verify provided documents every time they conduct eKYC. So, there is the issue of obtaining those documents, which is often a headache and one of the main reasons potential customers fail to complete the eKYC verification process. And because there are still many steps in the verification process, there lies the risk of spoofing or technology failure.
DIDs Create a Verified Digital Identity
The next step in remote identity verification is DID, or digital identity. In the same way that you can store and use a credit card digitally in your smartphone using any number of apps, DIDs build on the results from eKYC by securely storing the information from verified documents and biometrics digitally so you don’t need to go through those steps each and every time you want to create a new account or initiate a transaction online. By accepting DID, businesses can complete eKYC even faster and more reliably. In most cases, DIDs require only one authentication of documents and IC chips using OCR and biometrics in a certain amount of time. Simple biometric authentication and consent are still required for new transactions, and there may need to be updates or re-screening as customer’s details change or databases get updated, but most of this is done electronically. And while there are always security risks, DIDs can be ring-fenced and subject to ongoing monitoring to minimize this possibility.
TRUSTDOCK is at the DID Forefront
TRUSTDOCK is a leader in eKYC and CDD solutions and a major DID pioneer. We have long been developing and offering TRUSTDOCK IDs to customers of businesses using TRUSTDOCK solutions. Users with TRUSTDOCK IDs can complete their eKYC almost instantly and without having to carry or dig up ID cards and documents that could be stolen or misused. Onboarding and transactions with TRUSTDOCK IDs and TRUSTDOCK solutions are smooth for companies and their customers, and use the best available security protocols and certifications, leading the way for DIDs around the world.