## e kyc is a digital identity verification system that is transforming the industry

In an era where technology replaces all transactions, **e kyc** is an electronic identity verification system that operates digitally. It is an advancement from traditional KYC, which required customers to interact face-to-face with staff. The EKYC (Electronic Know-Your-Customer) system allows users to verify their identity from home using their own electronic devices. This offers many benefits in reducing time, costs, and the hassle of various transactions.

## How is EKYC different from traditional KYC?

Traditional (KYC) identity verification requires customers to verify themselves in person using physical documents such as ID cards, passports, and others. This process is time-consuming, prone to errors from manual checks, and documents can be forged or altered.

In contrast, **e kyc is** a method that uses digital technologies such as biometrics, digital signatures, and online systems for remote verification. It eliminates the need for physical documents, enabling customers to start using services more quickly and with greater accuracy. Additionally, security is enhanced through digital encryption and biometric certification, reducing the risk of fraud.

## There are 3 methods of identity verification in EKYC

Currently, there are three types of electronic verification methods as follows:

**Biometric Authentication** uses biometric data such as iris scans, facial recognition, or fingerprints to confirm that the user is the actual owner of the identity. Examples include logging into smartphones and verifying transactions via Mobile Banking apps.

**Optical Character Recognition (OCR)** involves scanning documents and images such as ID cards, bank statements, or registration certificates. The system converts the data into digital format, efficiently reducing the time needed for manual data entry.

**National Digital ID (NDID)** is an online identity verification system popular among banks in Thailand. It involves facial recognition and ID card scanning. This system is considered one of the secure and reliable methods.

## Information required for EKYC identity verification

Performing identity verification via the EKYC system requires data to clearly identify and prevent data leaks. For individuals, the system requests information such as national ID number, full name, date of birth, address, mobile phone number, email, and facial scan.

For legal entities or organizations, the system requests private information such as organization name, registration number, and office address.

Additionally, there is an "authenticator," which is something the individual possesses and controls to verify their identity. It consists of three components: "something you know" (things you know, such as a password), "something you have" (things you have, such as an ID card), and "something you are" (things you are, such as a fingerprint).

## What are the advantages of the e kyc system?

The benefits of EKYC are numerous. First, users can fill out information conveniently without traveling to meet staff, saving time and travel costs. It also significantly reduces resource and paper usage.

Second, the data storage system is highly secure, accurate, trustworthy, and free from post-verification document forgery issues. User data is thus well protected.

Third, users can register anytime using their own electronic devices. EKYC is used across many sectors, from banking, financial companies, and government agencies to account opening, investment portolio setup, and insurance services.

## Limitations of e kyc that still need development

Although EKYC offers many benefits, there are still limitations to address. One issue is that elderly groups may find it difficult to access the system and technology. This could pose risks where malicious actors might exploit their data. Therefore, it is necessary to develop backup methods and certification processes for those unable to use digital systems effectively.

## Summary: EKYC is a change in the digital age

**e kyc** is a significant identity verification system that modernizes financial institutions, government agencies, and businesses by leveraging digital technology to provide more convenient, secure, and accurate services. Currently, EKYC verification has become a standard in many financial and insurance transactions, and the trend indicates that this system will play an increasingly important role in protecting personal data and preventing fraud in the future.