Tuesday, November 10, 2020

The development of e-KYC production use cases in Southeast Asia

You may have come across the term e-KYC in the news lately. By removing paper-based procedures, e-KYC (electronic know your customer) can help enhance the entire identity authentication process, which reduces costs and time spent on customer identity authentication while complying to the due diligence. 

Unbanked customers can open new accounts, make a payment, apply for loans digitally or even invest in a financial instrument with just a few clicks on their smartphones and online self-service verification. This enhances the customer experience journey for a digitally savvy consumer based. 

Verifying customers by using paper-based identification and photo ID cards has its drawbacks. Identity verification by human eyeballing is time-consuming as it requires humans to manually read through the documents and verify pictures against identification documents, just imagine how many applications that need verification in a day!

In contrast, eKYC solutions that authenticate customers by using advanced technology such as Artificial Intelligence and machine learning simplifies the identity verification process. The identity verification process only takes a minute or so, making the entire process real-time to customer outreach. 

Southeast Asia surges towards e-KYC

As financial institutions aim to grow their customer bases while preventing fraud, many companies in the Southeast Asian region have also made announcements related to biometrics programmes, deals, as well as awards for technology supporting financial services.

Countries with large populations like Indonesia and the Philippines, are huge archipelagic countries. The strategic location makes financial services conventionally only in urbanized areas. Integrating eKYC solutions makes it more cost effective to drive a financial inclusion agenda, with the simplifying business process and avoiding security risks.

Since the global pandemic COVID-19 outbreak, many businesses realize the fact that physical outreach may not be a suitable permanent solution for customer acquisition, as the pandemic has brought fear to contact-based biometrics systems, such as fingerprint scanners. 

BFSI industry moves towards digital experiences

When talking about digital customer onboarding progress in Malaysia, you may have come across this international remittance, Valyou that offers a fully digital onboarding experience. Valyou is licensed by the Central Bank of Malaysia under the Money Services Business (MSB). With the eKYC solution implemented in their apps, it enables foreign worker communities to create their account without having to go through face to face counter service.

In traditional ways, those who work in remotely located estates or plantations would have to go through about an hour or so to travel to the nearest town.  Not only will it increase customer’s acquisition and retention, but it also drives a seamless customer journey. Ultimately, a more cost-effective remittance fee made possible by advanced technology. 

Wednesday, November 4, 2020

Why is Google changing to phone notification as the default option for 2-step sign-in?


Source: freepik (senivpetro)


We live in a world with advanced security mechanisms such as biometric authentication. However, an important part of staying secure online is the use of something that’s probably been around for much longer; 2-step verification.   

Many services provide 2-step verification and (where appropriate) you can consider using it. It may be seen as troublesome due to the extra steps involved and this is one of the things that stops people from enabling 2-step verification. However, Google makes it simple with "Google Prompt".

In essence, the new "Prompt" simply sends a text alert to your mobile instead of delivering a code asking if you are trying to sign in. You confirm, and that's basically it. It signs you in instantly with the touch of a button. And, on top of that, it is available for both Android and iOS.

What this means is, after you insert your email address and password, you can secure your Google account with an extra login confirmation with a click. Alternatively,  it is possible to perform 2-Step Verification (2SV) through an SMS, Google Prompt, an authenticator app, or a security key.




Google Prompt

Google Prompt has been there for a few years and for users who allow 2-step verification, it's the primary option. Prompt is more reliable than SMS because, rather than a phone number, it is linked to your Google account.