Understanding of eKYB Vs. Traditional KYB
Electronic Know Your Business (eKYB) is an automated process that assists companies in verifying entities without any manual effort. It is different from the traditional Know Your Business (KYB) process, which requires physical documents to evaluate company authenticity.
Know Your Business (KYB) is the requirement of every business for establishing partnerships with secure entities and to collaborate with only fair third parties and investors. The automated Electronic Know Your Business (eKYB) service ensures the most streamlined operations regarding corporate screening and verification. It involves artificial intelligence technology in the form of pre-trained checks, which offer quick identification and authentication services.
This blog post will identify the difference between eKYB and traditional KYB and also the different outcomes of eKYB, which contribute to business security and success.
eKYB Vs. KYB: A Brief Overview
Electronic Know Your Business (eKYB) service operates with the help of artificial intelligence, where pre-trained algorithms verify all the details after collection. Companies do not need to wait for physical visits and on site operations, but they can simply verify other organizations remotely. On the other hand, traditional KYB services, which do not have any digital process, can not identify organizations remotely. Businesses that employ traditional KYB services have only access to verify entities in real-time while having their information in hand in paper form. Buy eKYB allows you to collect all the necessary details in electronic form, such as canned business documents, and verify them in a digital form.
Additionally, eKYB is less time taking, while traditional KYB service is time consuming as all the process is done manually. Organizations collect business details manually and verify it with human efforts, which may commit mistakes. Hence, eKYB offers the most accurate results,and traditional KYB can be error-prone.
Different Outcomes of the Modern eKYB Service
Electronic Know Your Business (eKYB) service is an advanced method for business verification, and it offers the following outcomes:
Utmost Security
eKYB service operates through automated checks and verifies all the details most accurately, and identifies fraudsters. Many entities have fake business documents which are difficult to identify through the human eye. Only AI checks can identify the nature of documents and offer companies enhanced security from shallow organizations and high-risk entities. It is very important for businesses to employ advanced security measures to determine fraudsters’ complex tactics and strategies. Therefore, eKYB is a necessary service to use for utmost security and fraud prevention.
Streamlined Operations
The traditional KYB method involves multiple entities to complete the process. Companies hire many individuals to complete the business verification process. However, eKYB service made organizations free from manual working and revolutionized the landscape with automated solutions for business verification. Therefore, the eKYB service works for streamlined operations within the business and offers a seamless verification procedure. The traditional KYB process is time-consuming and no longer enough to deal with fraudsters’ sophisticated techniques.
Regulatory Compliance
Other than security and streamlining business operations, eKYB service is necessary to comply with certain regulations. Due to growing criminal attacks and fraud rates, law enforcement agencies made it necessary for businesses to adhere to various regulations such as Know Your Business (KYB) and Anti Money Laundering (AML). eKYB service thoroughly screens organizations and identifies their risk potential. It helps businesses to identify if the potential entity is involved in any illicit activity, such as money laundering and terrorist financing. Therefore, eKYB service works for compliance with various regulations.
Remote Verification
Businesses collaborate with other entities remotely for partnerships, investments, and to obtain their services. They require remote verifications to check the authenticity and appropriateness of entities before onboarding. eKYB service is a helping hand and necessary service in this regard. It allows companies to onboard organizations through screening and verification.
Major Characteristics of eKYB Services
eKYB solutions involve artificial intelligence technology in their operations and offer highly accurate results regarding company verification. It involves a biometric system to thoroughly screen company representatives for their ID verification and automated checks for UBOs screaming. Additionally, the eKYB process involves a cross-check service as it verifies data in electronic form and offers a due diligence service. Although due diligence is totally an advanced process, eKYB can act on this to manage the basic risk level. It works for risk assessment and enables companies to secure their landscape for high-risk entities.
Final Words
Electronic Know Your Business (eKYB) service works automatically through artificial intelligence algorithms and offers a streamlined verification process. It offers a remote verification process to verify and screen entities at distance and onboard them through digital means. It is different from traditional KYB service in terms of time, cost, and accuracy. The traditional KYB process involves manual efforts, and it takes a long time to operate for verification. However, the eKYB service offers quick authentications and evaluates organizations in a few seconds with highly accurate results.
