What does the introduction of KYC mean for users of your digital services?

In many European countries, identity verification processes for on-boarding into digital services are still manual. This means that staffmust manually verify personal documents, and potential customersmust visit a branch or risk sending valuable documents by mail.

Despite the fact that European and national regulations have alreadyestablished a legal framework regarding digital onboarding of newretail and business customers, most companies, including financialinstitutions, have not yet offered a trustworthy digital onboarding ofcustomers. Institutions and companies still rely on physical identifica-tion of customers, paper documents, and manual processes to com-ply with anti-money laundering regulations or ensure compliance withtheir own security policies.

Digital services are used remotely, so usersalso expect remote enrollment or registrationfor these services.

It's about trust

Most medium and large companies, regardless of their activity, al-ready offer various digital services to their customers and suppliers.These services are used by both consumers and business partners,but user registration is mostly done physically, and when it is digital, itoften does not meet the criteria for providing trust. The problem is thatdigital services are used remotely, so users also expect to be able toregister for these services remotely. However, this is not always aseasy as signing up with a Google email address and password like“user123”.

The use of digital services in the European Union is subject to severalregulations, from eIDAS to GDPR. Of course, there is also legislationon the prevention of money laundering and the financing of terrorism,as well as legislation on cybersecurity and various sectoral legislationand industrial standards. Providers of digital services must thereforealign the level of trust in the use of their digital services with the legis-lation and business risks.

The Public Key Infrastructure (PKI) which isthe basis for digital certificates, does not meetexpectations in terms of ease of implementa-tion and management, as well as userconvenience.

Digital needs to be easier

When using digital services that require user identity verification atthe level of personal identification, it definitely makes sense to intro-duce reliable digital identities. However, it has been shown that theuse of public key infrastructure (PKI), which is the basis for digital cer-tificates, does not meet expectations in terms of ease of implementa-tion and management, as well as user comfort.

A biometric remote identification has proven to be a user-friendly yetsecure and reliable way of ensuring security, privacy, and comfort inremote identification. Unlike manual or personal identity verification,this fully digitalized identity verification uses advanced technologiessuch as optical character recognition for reading document contents,facial recognition and liveness detection, and artificial intelligence foridentity verification.

Customers are increasingly demandinghigh-quality digital services, both in terms oftrust and security, as well as simplicity, speed,and convenience.

Customers will have the final word

Various surveys around the world show that 30 to 40 percent of con-sumers partially or completely abandon signing up for a digital ser-vice due to a poor user experience. Consumers expect somethingsimple, friendly, and better than what others offer, and often prefer toforego applications rather than take the necessary additional steps ata physical location. It turns out that these expectations are not muchdifferent in business-to-business transactions. In this case, the com-pany registers the product and not the individual. Companies are runby people who expect the same convenience as when opening con-sumer accounts or ordering travel services.

Digital transformation has touched all sectors and all businesses.Customers increasingly demand quality digital services, both in termsof confidentiality and security, as well as simplicity, speed, and conve-nience.

Make sure you provide an excellent user experience and maintain aflow of new customers. Therefore, contact us as soon as possible fora free demonstration of the Verified by Photko remote biometric verifi-cation service!