eKYC and KYC, in Relation to Digital Identity
In the previous blog, we have gone through what is the difference between eKYC and digital identity. Now, there are eKYC (Electronic Know Your Customer) and KYC (Know Your Customer), which are the processes used to verify the identity of their customers. They are related to digital identity as both processes involve verifying a person’s digital identity. Let’s take a closer look at the differences and their relation to digital identity:
Nature:
KYC is a traditional process that relies on physical documents for identity verification. It involves submitting physical copies of documents like passports, driver’s licenses, or utility bills, which are manually reviewed. On the other hand, eKYC leverages digital methods and online platforms for identity verification. It may include biometric authentication, digital documents, or online verification systems.
Digital Identity:
Digital identity is a concept that represents an individual’s identity in the digital world. It involves the collection of personal information, credentials, and attributes that can be used to authenticate and establish one’s identity online. Both KYC and eKYC contribute to the establishment of a digital identity by verifying the person’s identity using different methods.
Methodology:
KYC relies on physical documents and manual verification processes, while eKYC rely on digital technologies for identity verification. eKYC may involve capturing biometric data, fingerprints or facial recognition for example, validating digital identity credentials, or utilizing online authentication methods to verify a person’s digital identity.
Convenience and Speed:
eKYC offers convenience and speed compared to KYC. With eKYC, customers can often complete the verification process remotely, without the need to visit physical branches or submit physical documents. This eKYC approach allows for quicker turnaround times and a more seamless customer experience.
Digital Transformation:
eKYC is a part of the digital transformation trend where companies are shifting from manual and paper-based processes to digital processes. By adopting eKYC, companies can improve efficiency, reduce costs, and enhance customer experience by providing quicker and more convenient services.
In summary, both KYC and eKYC are processes that contribute to verifying a person’s digital identity. While KYC relies on physical documents and manual processes, eKYC uses digital technologies for identity verification, offering convenience, speed, and a more streamlined experience for customers.
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