February 28, 2024
Business

KYC Verification – Eliminating Identity Fraud in Business Operations

KYC Verification

The KYC verification process allows accurate customer authentication and verification. Traditionally, in-person checks and physical document verification are the prevalent methods for KYC verification. However, recently, people have been moving towards contactless and digital solutions. Although Covid sparked this revolution, it is still going strong despite the almost end of the pandemic. Since digital onboarding and verification are becoming the preferred method of choice for most companies and customers, it’s essential to understand the nuances of digital deployment. This post discusses the difference between on-premise and cloud-based KYC verification services and lists the top benefits of the cloud-based process.

Understanding Cloud KYC Verification Solutions

This section builds up the difference between on-premise solutions with cloud ones. As the name suggests, companies deploy their servers in the vicinity of the organization in the former method. Therefore, they are responsible for server upkeep and maintenance. Although it gives finer control over the details, the errors can be troublesome in the long run. In the broadest sense, cloud services refer to the on-demand delivery of services and operations over the Internet. These can include databases, servers, and data analytics. On the other hand, it means outsourcing automated KYC verification processes and data management in the KYC context. Therefore, the provider manages the infrastructure and provides secure access to the data.

Benefits of Cloud-Based KYC Verification Solutions

First and foremost, companies can quickly request efficient cloud services at a fraction of the cost instead of creating and maintaining an extensive infrastructure. However, the price is not the only variable here. Instead, organizations need to ensure that cloud-based or an e-KYC solution can handle customer data and requests in a viable manner. From customer experience to business processes, every component needs to be in perfect condition. Keeping these demands in view, here’s a closer look at some of the benefits of cloud-based KYC verification solutions:

Digital Onboarding

Digital onboarding involves creating a virtual environment for customers, employees, and other stakeholders to access the system resources. During the last few years, customers have rapidly moved towards digital onboarding rather than physical one. This is why organizations must implement a system that can scale according to customer demand. However, maintaining an on-site server can be hectic during demand peaks. On the other hand, cloud KYC verification solutions allow rapid scaling of the server architecture. Moreover, the best part is that the companies are only charged for extra resources when they come under use.

Data Coherence and Integrity

On-premise solutions can cause data corruption due to replication issues. However, cloud KYC verification solutions ensure that the data stays coherent even if usage grows exponentially. Similarly, server issues can deny access to authorized customers and employees. In comparison, it falls on the cloud provider to ensure the unhindered uptime of the system, even in case of minor disturbances. Therefore, KYC verification online can help in providing exceptional customer service.

Minimal Staff Training

Besides the actual deployment of the system, on-premise solutions require an entire IT department for their proper functioning. In the long run, it translates to continuous training of staff on newer technologies, not to mention the actual upgradation of the system. However, cloud KYC verification solutions relieve businesses of these tedious processes. Instead, the company gets a digital dashboard or an application containing all the necessary information and tasks. On the back end, the cloud provider maintains the server and database management IT teams.

Easier Infrastructure Management

On-site hardware requires an enormous budget for its continued maintenance and upgradation. Moreover, it is not just about technological advancements. Physical hardware has a lifecycle limit. Therefore, companies keep significant capital aside for lifecycle budgeting. On the other hand, cloud KYC verification solutions do not cause such issues on the client side. The provider takes care of lifecycle planning.

Similarly, there is a location limitation to physical hardware. It must be kept in one place to ensure efficient working. Unfortunately, a simple error can bring down the entire system in this approach. In contrast, cloud providers distribute data over different servers in multiple regions. Therefore, securing data even in the case of natural calamities.

Business Continuity

In the broadest sense, physical hardware can face problems like redundancy, tolerance, and business continuity. Apart from disaster recovery, cloud KYC verification solutions ensure business continuity. Where businesses might need to spend exorbitant amounts on maintaining the infrastructure only required for a few days a year, the cloud can do so cost-effectively. Moreover, cloud solutions come with KYC compliance techniques as well. Therefore saving the business from any legal action along the way.

Key Takeaways

Digital KYC onboarding is a compelling solution for accurate customer verification and ease. However, using physical hardware can jeopardize the entire verification system. Companies need to implement a cloud strategy to safeguard customers and business interests. Cloud KYC verification solutions can help cut costs, improve customer experience, and maintain business continuity even during disasters.