CHAPTER 7 Artificial intelligence and eKYC

KYC
Know Your Customer or KYC is a procedure to identify and verify a customer’s
identity.
The process consists of a series of checks implemented in the first stage of the
relationship with the client to verify that he is who he says he is, taking into
account his identity documents and his personification.
FROM KYC TO EKYC: DIGITAL TRANSFORMATION
All businesses and economic agents, especially financial institutions and banks,
are experiencing a drastic process of digitalization.
Digital transformation has been part of the most relevant changes in organizations
in the last decade, making that those who forget this task to lose opportunities in
their sector or even disappear.
Specialized businesses have appeared in order to achieve this task, using
cutting-edge technologies such as artificial intelligence and machine learning
to transform and optimize processes.
WHAT IS ELECTRONIC KYC?
eKYC is the expression used to describe the digitalization and electronic and
online conception of KYC processes.
eKYC (Electronic Know Your Customer) is the remote, paperless process that
minimizes the costs and traditional bureaucracy necessary in KYC processes.
 EKYC WITH AI IN BANKING
AI-led facial recognition, OCR, and fraud detection solutions are encouraging
banks to effectuate eKYC processes with the following benefits:
1) Cost-effectiveness with as much as 90% reductions in onboarding costs
2) Process acceleration to speed-up identity verification and data storage
3) Operation resilience with streamlined automation while ensuring security and
scalability.

With a spike in new loan requests amid crisis, eKYC is becoming an essential
part of banking operations worldwide.
(https://artificialintelligence.oodles.io/blogs/ekyc-with-artificial-intelligence/)
EKYC WITH AI: BUSINESS OPPORTUNITIES & APPLICATIONS
Document Digitization with OCR
Digital copies of identity documents: ID cards, passports, driving licenses
Manual methods: high costs and possibilities for erroneous entries.
AI-OCR applications can extract customer information from unstructured docs with
agility and accuracy.
EKYC WITH AI: BUSINESS OPPORTUNITIES & APPLICATIONS
Facial Recognition with Computer Vision
EKYC WITH AI: BUSINESS OPPORTUNITIES & APPLICATIONS
Fraud Detection
In addition, our AI capabilities for financial services expand to predictive
analytics for risk management, and chatbot development services for virtual
customer assistance