Examples of applying e-KYC technology in daily life

In this article, we will introduce examples of applying the identity verification technology. There are various types of identity verification, and e-KYC is one of them. Let’s see what e-KYC is and how to use it to verify identity.

The e-KYC has evolved from KYC, which stands for Know Your Customer. It means ‘the process of getting to know your customers’. KYC helps you to accurately identify and verify a customer’s identity, while e-KYC is the process of electronically verifying the customer’s identity.

In Thailand, e-KYC has become popular and widely used. Many activities in our daily lives, such as online shopping, QR code payments, and money transfers include e-KYC steps to verify that you are the real account holder. Additionally, you do not need to call customer service or waste time visiting a bank branch.

Two main processes of e-KYC

1. Identification: This is the process through which a service provider requests information and evidence to identify the user’s identity, such as a national ID card, telephone number, and email.
2. Verification: This is the process of verifying whether the user is the same person who previously logged in and verified their identity. This can involve logging into the created account, entering the set password, requesting an OTP code via SMS with the registered phone number, or scanning their face to access an application, and other methods.

Let’s see the example of opening a bank account through the K PLUS application of Kasikorn Bank so that you will understand more about identification and verification.

You must follow the steps below after downloading the application.

1. Enter your national ID card No. or passport number and date of birth.
2. Select the service type ‘Open an e-Savings account.’
3. Complete all personal information requested.
4. Select a verification method to open the account with a national ID card.
5. Bring your ID card to K-ATM with the K CHECK ID sign to verify your identity.
6. Return to the K PLUS app to scan your face.
7. Set a password
8. Check the application status on the K PLUS app and via SMS.

From all the steps above, you can see that the identification process occurs in steps 1, 3, 6, and 7. There is a verification process with national ID card information (entered in step 1) at Kasikorn Bank service points.

As you can see, there are multiple steps to verify identity in the K PLUS application, but only the national ID card is used for verification. So, in what cases will the other information be used?

I think these examples help you imagine how you can apply e-KYC.

Benefits of e-KYC

✔ Service providers can quickly collect information from users through online channels, so users do not have to waste time visiting the service provider’s location.

✔ It is an electronic data collection process. This eliminates paper-based processes, prevents data leakage, and reduces paper use.

✔ Data encryption and secure storage can reduce the risk of unauthorized access.

✔ It prevents financial fraud and money laundering

Nowadays, e-KYC has become a part of our daily lives, especially for online transactions through mobile banking applications. This technology makes transactions more convenient and faster, while also preventing identity theft by scammers.

In addition, using e-KYC technology builds confidence and reduces risks for financial institutions that provides online transactions without face-to-face contact. This is because e-KYC helps to better understand the identities of users.

_Source:

https://ginkgosoft.co.th/digital-transformation/e-kyc/

https://www.dittothailand.com/dittonews/gov-what-is-e-kyc/

_{Image by Freepik}