What is e-KYC (Electronic Know Your Customer)?
e-KYC or Electronic Know Your Customer is a digital process of verifying the identity of customers using technology. It eliminates the need for paper documents and physical presence, making customer onboarding faster, more efficient, and secure.
Key Features of e-KYC
- Paperless: All verification is done digitally.
- Real-time Processing: Verification and approval within minutes.
- Secure: Uses encryption and biometric authentication.
- Cost-effective: Reduces manual labor and physical storage.
How e-KYC Works
- The customer initiates the process online or through a mobile app.
- Identity documents (like NID, Passport) are uploaded or verified through a government database.
- Facial or fingerprint authentication may be used for added security.
- The system verifies the details and approves the account instantly or after a short review.
Benefits of e-KYC
e-KYC significantly improves the customer onboarding experience. Financial institutions and fintech companies can serve more people in less time, reduce errors, and stay compliant with regulatory requirements.
Regulations in Bangladesh
In Bangladesh, Bangladesh Bank and other regulatory bodies encourage e-KYC to boost digital banking and financial inclusion. Various banks and mobile financial services (MFS) providers already offer e-KYC facilities.
Conclusion
e-KYC is the future of customer identity verification. It’s safe, fast, and revolutionizing the way banks and financial institutions operate. Embracing e-KYC can lead to better compliance, reduced cost, and enhanced customer satisfaction.
