Tech

KYC Verification – Eradicate the risk of  Identity Theft in Business Operations

The online KYC process allows reliable customer verification and authentication. Previously, physical document verification and in-person checks were the prevailing methods for KYC verification. Hence, recently, people are moving towards contactless and digital solutions. The pandemic sparked this revolution, and it is still going strong despite its almost end. Since online KYC verification and onboarding verification have become the preferred mode of choice for most enterprises and clients, it’s essential to know the particulars of digital deployment. 

This blog covers the difference between cloud-based and on-premise KYC verification services and describes the top benefits of this process. 

Understand the Importance of Cloud-Based KYC Verification Solutions

This section concentrates on analyzing the dissimilarity between cloud-based and on-premise solutions. As the name suggests, firms place their servers near the organization in the traditional method. Thus, they are accountable for server purchasing and maintenance. 

Human mistakes are troublesome in the long run, but they have finer control over the details. In a broader view, cloud services recommend on-demand service delivery and processes over the Internet. These include servers, databases, and data analytics. The other means outsourcing automated KYC verification procedures and data administration in the KYC context. This is why the provider handles the infrastructure by providing secured access to the data. 

Benefits of Cloud-Based KYC Verification Services

Firstly, firms can instantly request effective cloud solutions at a fraction of the cost rather than creating and sustaining an expensive infrastructure. Although money is not the only variable here, companies must ensure that e-KYC or cloud-based solutions can manage client data requests in a feasible manner. From business procedures to customer experience, every element needs to be in a remarkable situation. Keeping these needs in view, here’s a quick look at a few benefits of KYC verification solutions:

  1. Digital Onboarding is Vital

To reach the system, digital onboarding requires virtual circumstances for employees, clients, and other shareholders. Over the last many years, customers have quickly moved towards digital onboarding compared to physical one. That’s why firms should enforce a system that scales according to client demand. Moreover, keeping an on-site server is hectic during demand rises. Cloud KYC verification systems permit quick scaling of the server. Therefore, the soundest part is that the firms only charge for additional resources at usage time. 

  1. Data Coherence and Integrity

On-premise servers cause data deterioration due to replication problems. However, online KYC verification services ensure that the information remains coherent even if usage increases exponentially. Besides, server issues deny access to credible clients and employees. On the contrary, it is the cloud provider’s responsibility to ensure the unchecked uptime of the method, even in minor irritations. Thus, KYC verification helps in giving exceptional client service. 

  1. Minimal Staff Training

After setting up the system, on-premise services need a complete IT department for functioning. Moreover, it requires employees to train in advanced technology, which needs time. Hence, online KYC frees organizations from these tedious procedures, rather than the firm requiring a digital dashboard and an application that contains all the critical data and tasks. In the end, the service provider maintains the database management and servers.  

  1. Easier Infrastructure Administration

On-premises training needs enough budget for its continuous upgradation and maintenance. It’s not just regarding technological advancements, as physical hardware has a lifecycle boundary. That’s why businesses have tremendous capital raised for lifecycle budgeting. However, the KYC process doesn’t need such issues on the customer side because the service provider takes care of the lifecycle planning. 

Likewise, there is a place restricted to physical hardware. It should be in one place to ensure effective working. A small blunder can be a reason to collapse the whole system in this technique. On the contrary, service providers disseminate information over different servers in diverse places. Thus safeguarding information even in the situation of natural disasters. 

  1. Business Continuity

Physical workplaces have many problems, such as business continuity, tolerance, and redundancy. Online KYC verification solutions must assist businesses in continuity apart from disaster recovery. Therefore, organizations must spend an enormous amount on keeping the infrastructure needed for a few days per year; the cloud does it without cost. Furthermore, cloud solutions also introduce the KYC process and protect organizations from legal action. 

Endnotes

Online KYC verification is an effective solution for authentic client verification. Moreover, relying on physical infrastructure can endanger the complete verification system. Organizations have to enforce a cloud strategy to secure clients and business interests. Hence, KYC verification helps cut costs, maintaining business continuity and client experience even during disasters. 


Keep Reading


Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button