It is finally acceptable to perform KYC through remote measures with the use of technologies, including biometrics, video conferencing, blockchain, OCR etc.
The trend is also strengthened by the high penetration of mobile devices of users, which allows them to perform various tasks to satisfy KYC and anti-money laundering (AML) requirements remotely without visiting a branch.
As we know, there is already an abundance of software services and apps that has made this possible right now. The difficulty is that there is still a need to establish trust in order to remotely conclude deals, sign contracts, complete applications, and pay individuals. This requires a secure identity verification process which is accessible to the public.
Indeed, the Financial Action Task Force (FATF), the key intergovernmental organization developing global policies for combating money laundering and terrorist financing, released a statement on 1 April 2020, addressing in part the “world facing confinement or strict social distancing measures” resulting from the COVID-19 pandemic. The FATF highlighted the need for fintech and regtech that ensures “trustworthy digital identity for improving the security, privacy and convenience of identifying people remotely for both onboarding and conducting transactions” while also mitigating money laundering and terrorist financing risks.
Users simply go through the onboarding KYC process through a computer / mobile device. Depending on the jurisdictions, users can complete the whole process remotely. Technologies allow users to:
Direct video transfer or direct photo transfer of an ID document and facial image
Video conferencing allows users to prove liveliness and facial recognition to prove users are who they say they are
API integration scans users’ identity for AML requirements at instance
This is precisely the approach Blockpass has taken in our KYC Connect solution. Anyone can download the Blockpass Mobile App or use Blockpass WebID and create their own identity profile before having it verified, completely free of charge. This means that a user can have their KYC ready to go when they want to onboard with a merchant at the click of a button – useful in saving time in every situation but particularly in time-sensitive opportunities.
With the huge efficiencies that Blockpass’ approach creates, KYC services can be offered to merchants at a fraction of the cost that they would have expected to pay with face-to-face methods. In addition to this, merchants also don’t have to wait for the KYC process to be completed either – if a user has a verified identity already, they are ready to onboard straight away! Finally, an important benefit of this model and reusable and remote KYC is that the user is in charge of their own personal information and data. They chose which merchants to onboard with and can decide based on the information required – giving them back control of what is their own data, rather than handing over control of it to a company.