Even without the “e”, KYC (know your customer) for the regulated financial and banking sectors comprises a wide spectrum of activities. And the responsibility of KYC scope expands over time to cope with prevention of financial crimes, especially the AML/CFT/ABC (anti-money laundering/countering financing of terrorism/anti-bribery and corruption) compliance. Prior to assessing a customer’s financial risk, identity verification (IDV) is traditionally the first and an important pillar within KYC process. Australian’s system uses the 100-point check, while Malaysia’s financial system relies on MyKad-fingerprint verification in face-to-face IDV.
And as electronic KYC is becoming the new normal due to evolving landscape in client onboarding trends, most if not all of the KYC activities are to be automated online with straight through processing, such as facial recognition for facial sighting and online API for financial risk assessment. At the same time, deep techs such as artificial intelligence and big data analytics are embraced to unlock new possibilities in financial crime prevention and create new opportunities from financial inclusions.
If we speak to 1 person to understand eKYC, we may only gain a tip of an iceberg. That is why, we gathered 7 speakers in Kuala Lumpur, and 6 speakers in Jakarta, to share their respective views on eKYC.
Microblink Sees Beyond Text RecognitionMicroblink is a R&D company developing proprietary computer vision technology optimized for real-time text recognition locally on a mobile device. Innov8tif is a regional distributor of Microblink in Southeast Asia, and we are using Microblink’s OCR technology as part of EMAS eKYC suite, to recognize ID card details as part of the ID verification process.
Valentina Kusek and Boris Trubic came all the way from Zagreb, and shared with us exciting updates about Microblink’s next generation OCR technology – DeepOCR, and its model trained for bank/credit card scanning. In addition to ID card recognition on mobile, DeepOCR will also be made available to server-side processing as Web API. Seeing beyond text recognition, Microblink is also working on document authentication technology, such as hologram detection to prevent identity fraud.
Cyber EthnographyToday’s consumer behaviors are getting more sophisticated to be generalized by traditional demographics, such as gender, age group, ethnicity, education level, income group and marital status. Dr. Ian Tan, Data Scientist from Priority Dynamics, pointed out a fact:
“In this room, we have 25-year-old and 45-year-old. It shows that there is a common trait between these 2 age groups and they do behave the same in some aspects, or share common interests”Thus, the traditional market research or consumer analytics is no longer entirely valid to derive customer insights and profiling. This leads to Dr. Ian’s sharing on “Cyber Ethnography Support for Risk Mitigation”. The word ethnography, is a new word to most of the event attendees. By definition, cyber ethnography is explained as:
online research method that adapts ethnographic methods to the study of the communities and cultures created through computer-mediated social interaction