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8 Reasons You Should Switch
to Biometrics Authentication
for Digital Onboarding

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• Customer Convenience
• Reduced Turnaround Time
• Improved Compliance and Security
• Incredible Cost Savings
• Increased Customer Acquisition
• Room for Innovation
• Supports Digital Workplace
• Growth of Formal Economy
Why Should You Switch to Digital
Onboarding Powered by Biometrics
Solution?

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Know-your-customer (KYC)
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Besides its cost-effectiveness, digital KYC solutions are vital in today’s digital era, where industries are scaling up their online
capabilities, including financial services, education, entertainment, restaurants, and healthcare. Let’s understand the e-KYC
process for digital customer onboarding and how biometric authentication can transform the overall experience.
Many industries leverage AI-powered smart biometrics
solutions to counteract security threats and meet updated
know-your-customer (KYC) standards during client
onboarding. Advanced biometric authentication provides an
additional layer of fraud prevention by digitizing the
processes for e-KYC.
Digital onboarding based on e-KYC is the most reliable,
secure, and faster way of authenticating identities, which is
also resistant to counterfeiting and spoofing. A recent World
Bank report cites that moving to e-KYC reduces the average
cost of customer verification from $23 to $0.50, and it takes
no time compared to five to seven days when done
manually.

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Understanding e-KYC Process for Digital Onboarding
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The e-KYC process is the first step in the digital
customer onboarding and identity lifecycle, and it
consists of three main components:
• Document Verification or ID Capture
• Biometric Authentication
• Risk Management and ID Affirmation

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Document Verification or ID Capture
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Document verification requires secure and accurate data
capture from a government-issued trusted document.
Businesses can use AI-powered OCR (Optical Character
Recognition) technology to auto-capture the data
seamlessly. This e-KYC component automatically identifies
the type of document, edition, issuing country, and extracts
all required fields. It also extracts the portrait image and
converts it into a proprietary biometric template for
biometric authentication.

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Biometric Authentication
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Customers must prove their authenticity by being physically
present to complete the digital onboarding process. There
are three ways digital KYC solutions can accomplish this
process through biometric authentication:
• Fingerprint recognition: It requires a fingerprint sensor
designed to pick up on fingerprint patterns and link them
to an individual.
• Iris Recognition: Iris scanners identify unique patterns in
an individual’s iris to verify identity.
• Facial recognition: It uses a 2D or 3D depth camera to
identify facial vectors and matches them to individuals.
However, only select expensive cameras are designed to perform iris scan that is fast and highly accurate. Dirt,
oil, and other hygiene concerns may compromise the efficacy and integrity of fingerprint sensors. Facial
recognition can be considered a superior biometric method because it is affordable, fast, flexible, and accurate.
Multi-factor authentication based on facial recognition requires the user to take a selfie which then compares to
the cross-verified and genuine image extracted from the document. Besides, this biometric method enables
active and passive liveness detection technology based on deep neural networks to detect and prevent digital
and remote ID verification frauds.

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Risk Management and ID Affirmation
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The identity affirmation process uses layers of
intelligence like device intelligence, behavioral
biometrics, and trust consortium, depending on the risk
appetite. These techniques analyze the user and
environment activities to build a dynamic profile for
each event that can be fed to a risk engine to validate
customers’ identities and interactions. Financial
institutions can implement Anti-money Laundering and
Countering the Financing of Terrorism regulations to
the ID affirmation process to mitigate the risk of
identity theft during and after the digital onboarding
process.

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Reasons why to switch to biometrics authentication
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Digital onboarding allows customers to enroll in new services
without having to leave the comfort of their homes to get their
KYC information authenticated. As the e-KYC process is
entirely digitized and automated, it appeals to those who want
their authentication done remotely. Customers can choose any
mobile device to complete their e-KYC process, which only
requires filling out a form and a few clicks.
Customer Convenience

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Reduced Turnaround Time
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Governments and central banks encourage using AI-
powered facial matching software for V-CIP (Video-
Customer Identification Process). The automated digital KYC
solution allchows more data to be captured quickly from
minimal input. Such a frictionless e-KYC process reduces the
turnaround time for customer onboarding, which is hugely
beneficial for businesses with large customer bases.

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Improved Compliance and Security
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One of the essential benefits of the e-KYC process is enhanced
compliance and security during customer onboarding. The
digital identity verification mechanisms comply with stringent
and evolving regulations such as the 6th AML directive and
Payment Services Directive. Cloud solutions also provide access
to risk management services vital in the onboarding process to
reduce application fraud.

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Incredible Cost Savings
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The biometrics solution-based, digitized onboarding process
significantly reduces the cost of paper documents, printing, and
other expenses associated with traditional onboarding. Officials
or customers are no longer required to travel to various
locations to perform in-person verification of KYC documents.
Smart biometrics expedites the e-KYC process and eliminates
the need for a special KYC analyst, freeing up resources for
more critical business activities.

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Increased Customer Acquisition
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Organizations can reach a broader customer base through
digital onboarding, including those who may have yet to
enroll in their services using traditional onboarding. The
convenient and smooth process attracts people from the
young generation. The seamless customer experience also
increases customer satisfaction and loyalty, retaining more
customers.

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Room for Innovation
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The entirely digitized nature of the e-KYC process leaves much
room for innovation and improvement using some emerging
technology to strengthen its integrity. Machine learning can be
used on V-CIP for lower false positives, saving the time spent
screening for false positives. Businesses can also implement
liveness detection technology to detect and prevent increasing
presentation attacks.

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Supports Digital Workplace
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The manual onboarding process can be clumsy and time-
consuming. Gathering identity information and cross-
verification can be laborious for businesses and customers
alike. The advanced identity verification process allows
organizations from various sectors to digitally accept ID
documents and KYC information. Whether it is customer
onboarding, bank account opening, SIM card registration,
driver registration, or e-VISA issuance, e-KYC declines the
need for paperwork and physical presence.

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Growth of Formal Economy
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Adopting e-KYC will mark growth in the number of users in the
formal economy. The digital identity lifecycle can be used to
provide formal and government services to more people,
especially those from rural settings. The innovations in the e-
KYC process support vernacular languages and text-to-speech
mechanisms to encourage people from underbanked regions to
subscribe to safe microfinance services.

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Modernize Customer Onboarding with
Smart Biometric-based e-KYC
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Electronic KYC powered by innovative biometric solutions can
empower organizations to secure their assets and information
more effectively. It is also more compliant than manual customer
identity verification and genuine user confirmation during the
entire customer lifecycle. Fingerprint authentication, AI-powered
facial recognition algorithm, document verification, and passive
liveness detection can contribute significantly to automating,
optimizing, and customizing the e-KYC process to minimize the risk
of identity fraud. With many other benefits, such as convenience,
speed, and increased customer acquisition, it is only wise to
integrate advanced biometric authentication into an e-KYC process
for digital onboarding purposes.
Our Smart Biometrics solution helps enterprises, governments, and
API partners verify users in real-time using robust features,
including customizable workflows, API-based framework, data
accuracy, and document management.

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Headquarters
Panamax Inc.
100 Quentin Roosevelt Blvd
Suite 503 Garden City
New York - 11530
USA
Contact No.
+1 718 713 8417
Email
info@panamaxil.com
Website
www.panamaxil.com
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